Draft Legal Notice Under Section 138
Section 138 of the Negotiable Instruments Act, 1881, deals with the dishonor of a cheque due to insufficiency of funds or if it exceeds the amount arranged to be paid from that account. When a cheque is dishonored, the payee or the holder of the cheque can send a legal notice to the drawer of the cheque to demand the payment of the amount due. Below detailed guide how Draft Legal Notice Under Section 138.
Format of a Legal Notice Under Section 138
When drafting a legal notice under Section 138, it is essential to follow a specific format to ensure its validity. Format typically includes following details:
| Name address sender | [Sender`s Name] [Sender`s Address] |
|---|---|
| Date | [Date] |
| Name address recipient | [Recipient`s Name] [Recipient`s Address] |
| Subject | Legal Notice for Dishonor of Cheque under Section 138 of the Negotiable Instruments Act, 1881 |
| Body notice | [Details of the dishonored cheque and the demand for payment] |
| Signature | [Sender`s Signature] |
Case Studies and Legal Precedents
There have been numerous cases related to the dishonor of cheques and the issuance of legal notices under Section 138. For example, case Shri Ishar Alloy Steels Limited v. Jayaswals Neco Limited, Supreme Court held drawer cheque can held liable Section 138 even if cheque issued security not debt transaction.
Statistics on Cheque Dishonor Cases
According data Reserve Bank India, number cheque dishonor cases rise recent years. In the fiscal year 2019-2020, there were over 35,000 cases of cheque dishonor reported across the country.
Drafting a legal notice under Section 138 is a crucial step in seeking recourse for the dishonor of a cheque. It is important to adhere to the prescribed format and include all necessary details to ensure the validity of the notice. Additionally, staying informed about legal precedents and statistics related to cheque dishonor cases can provide valuable insights for both the payee and the drawer of the cheque.
Draft Legal Notice Under Section 138
Section 138 Negotiable Instruments Act, 1881 deals dishonor cheque insufficiency funds or due drawn account closed. This legal contract sets out the terms and conditions for drafting a legal notice under Section 138 and the necessary actions to be taken in the event of a dishonored cheque.
| Legal Notice Section 138 |
|---|
| Dear Sir/Madam, |
| We are writing this legal notice to inform you that a cheque issued by you, dated [insert date], bearing cheque number [insert number], drawn on [insert bank name], for an amount of [insert amount], has been dishonored due to [insufficiency of funds/closure of account]. This dishonor of the cheque is a clear violation of Section 138 of the Negotiable Instruments Act, 1881. |
| According to the provisions of Section 138, you are hereby given [insert number of days] days from the receipt of this notice to make the payment of the aforementioned amount. If the payment is not made within the stipulated time period, legal action will be initiated against you and a complaint under Section 138 shall be filed before the appropriate court of law. |
| This legal notice is issued without prejudice to any of our rights and contentions and without waiving any of our rights in this regard. |
| Yours sincerely, |
| [Your Name] |
| [Your Address] |
| [City, State, Zip Code] |
Top 10 Legal Questions About Draft Legal Notice Under Section 138
| Question | Answer |
|---|---|
| 1. What is the purpose of drafting a legal notice under section 138? | The purpose of drafting a legal notice under section 138 is to inform the defaulter about the dishonored check and to give them an opportunity to make the payment within 15 days. This serves as a warning before taking legal action. |
| 2. What are the essential components of a legal notice under section 138? | A legal notice under section 138 should include details of the dishonored check, demand for payment, mention of the legal consequences if payment is not made, and a 15-day notice period for repayment. |
| 3. Can a legal notice under section 138 be sent via email or does it have to be physical? | As per the law, a legal notice under section 138 can be sent through registered post or courier, as well as via email. It is important to maintain proof of delivery. |
| 4. Is it necessary to consult a lawyer for drafting a legal notice under section 138? | While it is not mandatory, consulting a lawyer for drafting a legal notice under section 138 is advisable to ensure that all legal requirements are met and to avoid potential errors. |
| 5. What language Format of a Legal Notice Under Section 138? | The legal notice should be drafted in a clear and concise language, stating the facts accurately. It should be formatted professionally and should not contain any irrelevant information. |
| 6. Can a legal notice under section 138 be withdrawn after it has been sent? | Once a legal notice under section 138 has been sent, it cannot be withdrawn. However, if an amicable settlement is reached, a withdrawal letter can be sent as per the terms of settlement. |
| 7. What is the time limit for sending a legal notice under section 138 after the check is dishonored? | The legal notice under section 138 must be sent within 30 days from the date of dishonor of the check. Failing to do so may result in a waiver of the right to take legal action. |
| 8. Can a legal notice under section 138 be sent to the legal heirs of the defaulter? | Yes, legal notice section 138 can be sent legal heirs defaulter defaulter deceased. It is important to address the notice to the legal representatives of the estate. |
| 9. What are the consequences of not responding to a legal notice under section 138? | If the defaulter fails to make the payment within 15 days of receiving the legal notice, the payee has the right to initiate legal proceedings, which may lead to imprisonment and/or fine as per the law. |
| 10. Is it possible to settle the matter without going to court after sending a legal notice under section 138? | Yes, it is possible to settle the matter amicably without going to court after sending a legal notice under section 138. If the defaulter agrees to make the payment, the payee can withdraw the legal proceedings. |