Draft of Demand Notice under Section 138 of the Negotiable Instrument Act 1881

 

DRAFT OF DEMAND NOTICE UNDER SECTION 138 OF N.I ACT

TO

……………………..,

………………………………..,

………………………………,

SUBJECT- NOTICE OF DEMAND U/S 138 OF NEGOTIABLE INSTRUMENT ACT 1881

Sir,

Under the instructions from my client ............S/o.........................Residing at .................I give the folllowing notice.

1.   That, my client is having business in ......................running a shop at............

 

2.   That you came to my client on.............and I purchased the following goods as specified infra, (specify the details of goods purchased).

 

3.   That you promised to repay the amount of Rs.....the price of the goods purchased by you from my client on.............and amount is Rs.........

 

4.   That you issued a cheque bearing No..............dated...........to be drawn on.............Bank, for Rs.............which represents the amount due to be paid to my client because of the purchase of aforesaid goods.

 

5.   My client states that he had presented the cheque on..................for encashent but the same was dishonoured with an endorsement that there are insufficient funds on....................

 

6.   That my client however is reserving his right to file a criminal complaint also by issuing appropriate legal notice in this regard.

 

7.   My client also states that you are liable to pay the aforesaid amount with interest thereon up-to-date and though my client requested you on several occasions personally and through mediators, you are not inclined to repay the same.

 

8.   I therefore call upon on behalf of my client to repay the amount due specified in the notice within a period of fifteen days from the date of receipt of the notice failing which my client will be constrained to take necessary legal action for recovery of amount due from you. My client hopes that you may not invite such litigation which may be an unwanted litigation in the circumstances of the case.

 

9.   This is without prejudice to all other legal rights and remedies available to our client for the above-stated purpose.

 

NOTE: Copy of this notice is retained in the office of the under signed for further legal action in case of non-compliance of demand of present legal notice. 

 

PLACE

DATED- ………………………

 

 

……………………………………

(ADVOCATES)