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Welcome To Contract Easily! ( Consult, Contract, Share,download Legal Matters Easily )
Contract Easily
Stamp paper is not included with this agreement and is for illustration purposes only. If e -stamp is applicable in your city you can order it during checkout.
Stamp paper is not included with this agreement and is for illustration purposes only. If e -stamp is applicable in your city you can order it during checkout.
A "Notice under Section 138 of the Negotiable Instruments Act for Dishonour of Cheque" is a legal notice issued in India when a person or entity intends to take legal action against another party for dishonoring a cheque due to insufficient funds or other reasons. It is a crucial step in initiating a criminal case for cheque bounce. Here's a brief guideline on its use and common mistakes to avoid:
Usage:
Identify the Default: Confirm that the cheque in question has been dishonored due to insufficient funds or another reason that falls under Section 138 of the Negotiable Instruments Act.
Draft a Formal Notice: Prepare a clear and concise legal notice addressed to the drawer of the bounced cheque, stating the facts, cheque details, and demand for payment within 15 days.
Provide Legal Grounds: Clearly mention the legal provisions, i.e., Section 138 of the Act, under which the notice is issued.
Request Compensation: Specify the amount you are seeking as compensation for the dishonored cheque and any additional damages incurred.
Common Mistakes to Avoid:
Incomplete or Inaccurate Notice: Ensure that all details, such as cheque particulars and legal provisions, are accurate.
Missed Deadline: Serve the notice within the statutory timeframe, usually 30 days from the date of dishonor, to maintain legal validity.
Lack of Supporting Documents: Attach copies of the bounced cheque, notice of dishonor from the bank, and any other relevant documents to substantiate your claim.
Unreasonable Demands: Request a reasonable amount of compensation aligned with the actual damages suffered.
Threatening Language: Maintain a professional and non-threatening tone in the notice to avoid potential counterclaims for harassment.
Non-compliance with Legal Procedures: Consult with a legal expert or attorney to ensure compliance with all legal procedures and requirements.
A well-drafted Section 138 notice is essential in initiating legal proceedings for cheque bounce. Seek legal advice and follow these guidelines meticulously to strengthen your case and protect your rights as a payee.