Legal Notice Format for Cheque Bounce

Legal Notice Format is the details draft notice for each and every dispute. So this blog will give all the relevant detail about its.

Cheque bounce is a serious offence in India which is punishable with imprisonment or a fine under section 138 of the negotiable instrument through legal notice format.

If anyone gets his/ her Cheque dishonoured then he got the remedy under section 138 of the negotiable instrument which is that you must file, the legal notice within 30 days of the return of the cheque.

The legal notice format should be written in such a form that its language is firm and serious appearing to the receiver of the notice, it should state in clear terms that if attention is not paid to count the mention of the notice giver then the lawsuit will be brought against you.

Cheque Bounce Legal Notice Format Included

Cheque Bounce notices are issued under section 138 of NI act 1882, Once the document is created you must get it printed on a white plain paper and deliver it to the cheque issuer.

The legal notice format must contain the name of the issuer of the notice, check the issuer name and add ss date of the return of the cheque, reasons for the return of the cheque, request to make payment of the cheque through some other alternative means.

It’s important to send the cheque bonus notice through some registered post so that the date for issuing notice can be recorded.

The facts which are material should be mentioned there, details relating to the cheque, when the cause of action had arisen. The sum for which the cheque had been made etc should be put in the notice itself.

When Notice Can Be Issued In A Cheque Bounce Case?

The Legal notice format for recovery of money is similar when it comes to the cheque bounce case. A cheque bounce legal notice format can be issued under the following circumstances:

• The cheque must have been drawn to pay off the dues or liability
• The cheque should be presented within the period of six months, that is in the validity period.
• The cheque has been returned by the bank due to a lack of sufficient funds.
• The payee must have made the demand for the payment by giving a cheque bounce notice in writing within the period of 30 days of the receipt of the information that his cheque had been returned by the bank.
• The cheque drawer had failed to make the payment within t5 days of the receipt of the cheque bounce notice
• The action must be initiated within one month from the date on which the cause of action had arisen.

How To Start Creating Legal Notice Format Action For Cheque Bounce?

The legal action for cheque bounce has been consists of the following steps let’s learn them.

1. The legal action in cases of cheque bounce starts with the issuance of legal notice to the opposite party, it must be sent within a time frame of 30 days of the return of the cheque by the concerned bank due to some faulty grounds.
2. The cheque bounce legal notice format should be drafted in formal language, the information like the nature of the transaction, the date the n which the cheque got bounced, reasons for reverting the cheque without being chased, and there should be a request made within the period of 15 days for the payment
3. When the defaulter fails to make the payment within 15 days of the cheque bounce you can file a criminal case in the court within the period 30 from the expiration date the of notice, the complaint of bouncing of the cheque should be made to the city court where it has been presented for chasing but returned by the bank.
4. Defaulter then has to present themselves before the court for resolving the matter with surety.

Let’s go through the legal provision of section 138 of the Negotiable instrument act.

When any cheque is drawn by the person with the bank where he maintains the accounts to another person for the discharge of the liability.

It is returned at the bank unpaid for any reason then the person who had the knowledge that the cheque which he /she is drawing will be returned without being cashed shall be punished under the provisions of the section 138of NI act.

The provisions penalize the defaulter with imprisonment for the term which may extend to one year, with a fine which can extend to twice the amount of the cheque through legal notice format or with both, provided, nothing contained in this section shall apply unless.

• The cheques had been, presented for payment within six months, from the date on which it is drawn.
• The payee or the holder in due course o the cheque, make the demand for payment of the said amount of money by giving notice, in writing to the drawer of the cheque within 15 days of the information that it had been returned unpaid.
• The drawer of the cheque had failed to make the payment of the said amount, within fifteen days.

Section 141 of the NI Act is made out for companies –

It says if the offence is committed under section138 and at the time of offence every person who is responsible for the conduct of the business of the company shall be deemed to be guilty of the offence and shall be liable to be punished if the commission of the offence got prove against him.

 Where an offence had been committed by the company and it had been proved that the offence was done with the consent, connivance, or neglect on the part of, any director manager, secretary or other officers, then they will be considered as to be guilty of the commission of the offence and shall be liable to be punished accordingly.

What will be the Contents of the Cheque Bounce Legal Notice let’s take them in some points:

• Name of the receiver of the notice, and address
• The details about the cheque
• The name and address of the payee of the cheque
• Information about the bank with which you are having an account.
• Date on which cheque is returned
• What is the cause of the cheque bounce
• Request for an alternative mode of payment for the cheque

Reason for cheque bounce & Creating a Legal Notice Format

There are several reasons for the dishonour of the cheque some of which are mentioned herein.

• It most frequently happens due to a lack of funds in the bank account of the person who issued the cheque
• Or it can be the case that signature on the cheque does not match the original signature of the party.
• The date on the cheque has expired, that is it is more than 3-month-old from the current date.
• The cheque is made post-dated, that is cheque is deposited earlier than its due date.
• The cheque is not in a good condition that is it is damaged, torn or disfigured or the mentioned detail in the cheque is not visible.
•  There is overwriting, correction, scribbling etc on the face of the cheque.

How To File The Reply To The Legal Notice Format?

It’s advisable to file the reply to the legal notice within framed time, and never do the mistake of ignoring the notice, legal notice is the official document which is sent for taking legal notice action against the person in default.

It is wiser to take legal advice while framing the legal notice format and then a reply to the notice is issued.

When any person receives the notice, he/she has to, make out from two options-

•  Simply comply with the demands of the sender of the notice within the time allowed by him.
• Or reply to the legal notice by defending yourself and putting your points across.

To whom the reply of the legal notice is sent? 

• The reply to the legal notice is sent to the lawyer of the person concerned, who has issued the notice.
• Your name, description and address must be provided in the reply to the legal notice, do engage a lawyer for yourself to file the response.
• Mention the points that you made in your favour, against the allegations made out by the plaintiff.
• Make the brief of the facts in the issue along with the relevant data and points proving yourself in a stronger position
• If you have any grievance against the sender do,  make them out.
• Provide a summary of your defence to the issuer.

Sample of The Legal Notice Format

Format of Legal Notice for Cheque Bounce 

To,

Mr Shaam Singh

House no 82, New Colony, Khoriropa    

Lower Dhalpur , Kullu

17501

Dated: 10/12/2022

Subject:  The dishonour of Cheque under section 138, NI act

With the instruction from my client, which Firm dealing in computer hardware and under the authority of Mr Shahin, I am severing legal notice on you, regarding the following concerns of my client.

1. That my client is a Firm, bearing the name Shahin and brothers is engaged in the trading of computer hardware, the firm is located in ----------place.

2. That in the month of July you approached my client firm, for the delivery of the set of computer accessories, part of the computer.

3. The order had to be assigned to you within 15 days, which amounts to rupees,25000.

4. That you had promised my client that you will pay the amount in a cheque, on the current date, as it is itself mentioned in the purchase order.

5. That my client had relied on your promise and instructed the delivery of the assignment.

6. That you have issued cheque no -------dated ------for Rs------ was presented by my client -------on-------to your bank .

7. That my client got surprised when he learns that your issued cheque got rejected, due to insufficient funds, which was intimated to my client through their cheque return memo date --------

8. That despite many emails, letter communication, and telephonic communication, you failed to provide my client with the payment of the said amount.

9. That becomes clear to my client that you have no intention to make the payment.

10 . That you have issued the cheque only with the purpose to cheat, and committed an offence under section 138 of the negotiable instrument act.

11. Under such circumstances, we are calling to pay the said amount within the period of 15 days from the receipt of this legal notice, failure will result in my client taking legal action against you in a court of law.

A copy of this legal notice Format is kept at my office for further use, in future

Your Sincerly

Advocate-----------

Signature----------

Date ----------------

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