Demand Notice U/sec. 138 r/w 142 of the Negotiable Instruments Act, 1881
To,
ABCD,
Address…..
Dear Sir,
Ref: Notice under Section 138 of the Negotiable Instruments Act, Dishonour of Cheque No.250641 dated 27/12/2006 for Rs. 2,50,000/- drawn on Development Credit Bank, M.M.O. Dongri Branch, Mumbai-400 009.
Under the instructions from my client Shri Khalid Muttam having address at Hotel New India, 14 Cross Lane, Char Null Dongri, Mumbai-400 009, I have to address you as under:-
My client states that somewhere in the month of October- 2006 you have approached my client with a request to give a friendly loan as you were wanted to purchase a scrap and you were short of funds and you will arrange to return the said amount within 4 to 5 months from the date of borrowing.
My client states that to clear the aforesaid liability you had issued a Cheque No.250641 dated 27/12/2006 for Rs.2,50,000/- drawn on Development Credit Bank, M.M.O. Dongri Branch, Mumbai-400 009 and upon your instructions deposited the said cheque to his banker and to the shock and surprise of my client the said cheque got returned with remark “Funds Insufficient” and the intimation with regard to the dishonour of cheques has been received by my client on vide Bankers Memo dated 27/12/2006.
That the above facts make it absolutely clear that you have mischievously and intentionally issued the aforesaid cheque with ulterior motive knowing fully well that the cheques would not be honoured on presentation.
That the dishonour of the said cheque with the aforesaid reasons clearly proves your malafide intentions to cheat and avoid its legal dues, and besides other you have committed an offence under the provisions of the Negotiable Instruments Act,1881.
Under the instructions, you are hereby serve upon this demand notice U/sec. 138 r/w 142 of the Negotiable Instruments Act, 1881 and you are hereby call upon to make the payment of Rs.2,50,000/- in lieu of the dishonour of the aforesaid cheque within 15 (fifteen) days from the date of receipt of this notice, failing which I have definite instructions from my client to take necessary action against you in the competent court of law, and in that event you shall be liable for all the costs and consequences which you please note.
Yours faithfully
Durgesh Gupta
Advocate