notice under section 138 of negotiable instrument act

NOTICE UNDER NEGOTIABLE INSTRUMENTS ACT REGARDING DISHONOUR CHEQUE

REGISTERED A.D.




To,

Sh.(Name & Address)

________________





Sub:- Notice under Section 138 of the Negotiable Instruments Act for Cheque Dishonoured due to insufficient funds.

Dear Sir,

Under instructions and authority from our client M/s. ________ having their office at _________, we serve upon you the following notice of demand under Section 138 of the Negotiable Instruments Act.

1. That your business concern M/s _______ had purchased from my client goods (Name and brief description of goods) vide their invoice bearing no. ___ dated ________ for Rs._______

2. On delivery of goods above mentioned, you issued a cheque bearing no. ____ dated _________ for Rs._______drawn on ____ Bank.

3. That when the aforesaid cheque was presented by our client M/s. ____ to your Bankers i.e. ________ the same was returned unpaid by the Bank with the remarks/reasons "Insufficient Funds". This fact was brought to your notice by our client vide letter dated_______.

4. That in reply to our client’s letter, you sent a letter dated ____ requesting him to deposit the cheque again with banker and assured him that they will be cleared this time.

5. My client again presented your above mentioned cheque with its bankers, this time again cheque was returned un-paid by the bank due to insufficient funds.

6. That thereafter inspite of many telephonic reminders and personal visits by the representative of our client to your office, you failed to make the payment due to our client.

7. That on account of the above facts, you are liable to be prosecuted under section 138 of the Negotiable Instrument Act, 1881 as amended upto date under which you are liable to be punished with imprisonment which may extend to one year or with fine which may extend to twice the amount of cheque or with both.

8. Under the circumstances, we call upon you to make the payment of Rs. _____ being the principal amount of the aforesaid cheque along with interest @ ____ % per annum till the time of actual payment within a period of 15 (fifteen) days from the date of receipt of this notice, failing which we will be bound to take further necessary action under the provisions of Negotiable Instrument Act, 1881 against you in the competent court of law at your risk and cost.

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

Kindly take notice.



Date:____________ Yours faithfully,

points regarding to notice

Tenant cannot be told to pay arrears after eviction proceedings:



Now a tenant cannot be directed to pay arrears after being ordered evicted on the ground of wilful default under the rent laws of Tamil Nadu.



A recent judgment delivered during February 2009 by the Madurai Bench of the Madras High Court has clearly reversed the order passed by the Rent Controller.



In an eviction proceeding, the Rent Controller ordered the tenant to be evicted with a consequent direction to pay arrears of rent. Though the tenant handed over the premises did not comply with the direction to pay the rental arrears. The landlord filed a petition to arrest the tenant for not complying the direction of the court to pay the arrears of rent.



The Rent controller ordered the arrest of the tenant. This was challenged by the tenant before the High Court, which has now ruled that the “rent controller could direct tenants to deposit arrears only as a pre condition for participating in rent control proceedings and not otherwise”.



Setting aside the order passed by the Rent Controller’s for arrest of the tenant the High Court has also ordered that the only remedy for the landlord was to file money suit before competent court for recovery of arrears of rent.



This judgment in one way has clearly ordered the statutory authority to function within the four corners of the statute and not travel beyond that. But this would multiply the proceedings as the landlord has been ordered to take a separate recourse to filing of civil suit for the recovery of arrears of rent. This judgment would clearly affect the rights of the innocent landlords as they are now forced to file the civil suit and wait for long period to recover their money from the tenants. A more simplified and short process is necessary for innocent landlords to recover their money from the tenants who refuse to pay arrears for months and years together. Or otherwise the statute may be amended to confer powers on the rent controller itself to direct payment of arrears of rent so that prolonged litigations can be avoided among tenants and landlords.