by Cheque drafting and dishonor refer to two important concepts under the Negotiable Instruments Act. Cheque drafting means writing a cheque correctly with all necessary details so that the bank can process it smoothly. It includes writing the date, payee name, amount in words and figures, signature and ensuring there are no overwriting issues. Dishonor of cheque happens when the bank refuses to clear the cheque. This can occur due to reasons like insufficient funds, mismatch in signature or expired validity. When a cheque is dishonoured, the payee gets a bank memo and can take legal action under Section 138 to recover the amount.
Date: 10 January 2025
Payee Name: Mr. Rahul Singh
Amount in Words: Rupees Twenty Five Thousand Only
Amount in Figures: Rs 25000
Bank Name: State Bank of India
Branch: Connaught Place New Delhi
Account Number: 12345678901
Signature of Drawer: Amit Kumar
LEGAL NOTICE FOR DISHONOUR OF CHEQUE Under Section 138 of the Negotiable Instruments Act 1881
To,
Mr. Rahul Singh
Address: 22 Green View Apartments New Delhi
Subject: Notice for Dishonour of Cheque under Section 138
Sir,
This notice is issued regarding the cheque given by you towards repayment of the amount due to my client. You had issued Cheque Number 452871 dated 10 December 2024 for an amount of Rupees Twenty Five Thousand drawn on State Bank of India Connaught Place branch. The cheque was presented within the valid period but was returned unpaid by the bank due to insufficient funds. The bank issued a memo confirming the dishonour.
You are hereby called upon to make the full payment of the cheque amount within fifteen days of receiving this notice. If you fail to make the payment within the given time, my client will take legal action as provided under Section 138 of the Negotiable Instruments Act which may include filing a criminal complaint before the court.
Kindly treat this as a final opportunity to settle the matter.
Yours faithfully,
Amit Kumar
(Complainant)
