SPEED POST/COURIER

Date: August _____, 2019

Without Prejudice
To,

Mr. Daroga Chaudhary

S/o Shri Lakhan Chaudhary,
R/o F-2/875, Sangam Vihar,
Delhi - 110062

Subject: Demand cum Legal Notice under Section 138 read with
Section 142 of the Negotiable Instruments Act, 1881.

Dear Sir,

I act for and under instructions of my client Sh. Kana Ram

Ghotia S/o Sh. Harji Ram Proprietor of M/s J. K. Enterprises
(“my Client”), having its office at 9199/4, Multani Dhanda,
Pahar Ganj, New Delhi-110055, and I hereby serve upon you
the addressee, the present demand cum legal notice in terms of
the facts and circumstances stated hereunder:

1. That my client is Proprietor of M/s J. K. Enterprises and

is engaged in the business of Aluminum goods for the last
several years and enjoys immense goodwill and reputation
throughout the country, for the quality and services.
2. That my Client, through its widespread existence in the
concerned industry, absolute determination and
foresightedness of the management, client satisfaction and
value for money product, has already gained such niche in
the market and is not a repute and distinguished name in
the market.

3. That you the addressee are in requirement of Aluminum

Goods and approached my client for supply of the same.
On various occasions my clients supplied Aluminum
Goods and you the addressee clear the outstanding bills of
the same.

4. That in the month of April-May 2014, you the Noticee

approached our Client and requested him for a friendly loan of
Rs.3,50,000/- (Rupees Three Lakh Fifty Thousand Only). You
the Noticee assured to our Client that the said amount shall be
returned by you the Noticee to our Client within a period of 02
(two) years. In view of the friendly relations and based on the
trust developed by our Client in you the Noticee, our Client
agreed and advanced an amount of Rs.3,50,000/- (Rupees
Three Lakh Fifty Thousand Only) (hereinafter referred to as the
“Loan Amount”) as a friendly loan to you the Noticee in May
2014.

5. That subsequently, on expiry of the aforesaid 02 years, our

Client approached you and requested you to pay back the Loan
Amount, however, you the Noticee stated that you are facing
financial constraints owing to which you are not in a position
to repay the said Loan Amount to our Client. You the Noticee
further informed our Client that you can pay back only
 Rs.50,000/- (Rupees Fifty Thousand Only) and further
requested more time for repaying remaining portion of the Loan
Amount.

6. That accordingly, you the Noticee paid Rs.50,000/- (Rupees

Fifty Thousand Only) in cash to our Client towards part
discharge of your liability to repay the Loan Amount and
further executed an undertaking for payment of the balance
Loan Amount of Rs.3,00,000/- thereby issuing 02 post-dated
cheques bearing No.016289 and 016290, both dated
08.07.2019, both drawn on Oriental Bank of Commerce,
Hemkunt Chambers Nehru Place Branch, New Delhi for a sum
of Rs.1,50,000/- each with an assurance that the cheques
shall be duly honored upon their presentation before the bank
on the stipulated date. It is pertinent to mention that our
Client, believing your representations and assurances to be
true, accepted your request and granted you more time repay
the balance Loan Amount on receipt of the said post-dated
cheques in view of the undertaking so provided.

7. That our Client, based on your assurances and commitment

and with due intimation to you the Noticee, presented the
aforesaid cheques before his bank, namely, Union Bank of
India account, at __________________ Branch on 16.07.2019,
however, to the utter shock and dismay of our Client, both the
said cheques got dishonored vide return memos dated
17.07.2019 with the remarks “Funds Insufficient”.

8. That on return of the said cheques, our Client immediately

contacted you the Noticee, whereupon, it was represented and
assured by you that our Client may present the said cheques
 again for encashment before the bank and the same would this
time be honoured and encashed upon presentation.

9. That our Client, once again believing your assurances to be

true and upon your instructions, again presented both the
aforementioned cheques bearing No._________ and _________
dated 08.07.2019 before the bank on 01.08.2019 for
encashment. However, to the utter shock and dismay of our
Client, the said cheques got dishonored vide the return memos
dated 02.08.2019 with the remarks “Funds Insufficient”.

10. That immediately upon dishonour of the said cheques, our

Client tried to approach you the Noticee on a number of
occasions to intimate about the dishonour of the said cheques,
however, despite putting lot of efforts, you the Noticee have
made yourself unavailable to our Client on one false pretext or
the another.

11. That you the Noticee issued the aforesaid cheque towards the
discharge of your liability for repayment of the balance Loan
Amount of Rs.3,00,000/- towards to our Client. However, you
the Noticee, deliberately and with malafide intention to escape
the lawful liability, issued the said cheques without any
intention to actually pay the said amount, thereby knowing
fully well that the said cheques were bound to be dishonored
on their presentation.

12. That, from the above conduct, it is clear that you the Noticee
had dishonestly induced our Client to part away with his hard-
earned money without having any intention to pay the same.
You the Noticee has thus misappropriated the sum of
Rs.3,00,000/- and has also got the said cheques dishonored
 which were issued by you towards payment of your admitted
outstanding liability.

13. In the light of the aforementioned facts and circumstances, it is

apparent that this is an attempt on your part only to escape
from your lawful liability to pay the said outstanding cheque
amount of Rs.3,00,000/- (Rupees Three Lakhs Only) to our
Client which you the Noticee has wrongfully retained with
yourself. In fact, you the Noticee have caused wrongful loss to
our Client and caused wrongful gain to yourself in order to
cheat our Client.

14. Please note that the non-payment of the aforesaid amount of

Rs.3,00,000/- (Rupees Three Lakhs Only) and the dishonor of
the said cheques on your part amounts to a criminal offence
punishable under Section 138 of the Negotiable Instruments
Act, 1881, as amended from time to time. The said offence is
punishable with imprisonment up to 2 years and fine which
may extend up to twice the amount of the said cheques.

15. That your deliberate and mischievous act resulting in the

dishonor of the aforesaid cheques also amounts to an offence of
cheating, dishonest misappropriation of property and criminal
breach of trust under the Indian Penal Code, 1860, as the said
cheques were issued by you with the sole intention to cheat our
Client, purposely and knowingly that the said cheques will not
be honored upon its presentation since you the Noticee had no
intention to honor the said cheques.

16. That in terms of your illegal and malafide actions, you the
Noticee shall be rendered liable to be prosecuted for the
 criminal offences under various laws and more specifically
under Section 138 of the Negotiable Instruments Act, 1881.

In view of the facts and circumstances stated herein above, we, on

behalf of our Client, hereby call upon you to make payment of
Rs.3,00,000/- (Rupees Three Lakhs Only) thereby honouring the
aforesaid cheques within a period of 15 days from the date of receipt
of this demand cum legal notice.

You are hereby called upon to comply with the requisitions contained
in this demand cum legal notice failing which our Client shall be
constrained to institute both civil as well as criminal proceedings
against you including a criminal complaint against you the Noticee
under Section 138 read with Section 142 of the Negotiable
Instruments Act, 1881 besides recovery proceedings before the
appropriate Court of law and in such an event you the Noticee shall
be held liable for all the costs and expenses incurred by our Client
and the consequences of such litigation(s).

It is significant to note that there has been substantial and deliberate

delay on your part to make the outstanding payment to our Client.
This Notice shall not prejudice any of the rights of our Client to claim
damages for such delay in making payment by you the Noticee.

Our Client further reserves the right to claim/demand any such

amount, costs and damages from you which may be incurred or
expended or suffered by our Client in future and also recover any
outstanding amount due and payable to our Client by you in future.
Please note that you the Noticee are also liable to pay a sum of
Rs.35,000/- (Rupees Thirty Five Thousand Only) towards the cost of
this Demand cum Legal Notice.

A copy of this notice has been retained in our office for further
necessary action.

Regards,
Kanth & Associates

_______________, Advocate
(_________________)