RE: LEGAL NOTICE UNDER SECTION 138 OF NEGOTIABLE
INSTRUMENT, A/C. Company 1.
We refer to your letter vide Letter No. 607.1884/8787 dated 13.12.2007 regarding the above subject-matter.
Section 138 (1) (b) of the Negotiable Instrument Act states as follows:
“The payee or holder in course of the cheque, as the case may be, makes a demand for the payment of the said amount of the money by giving notice, in writing, to the drawer of the cheque, within, thirty days of the receipt of the information by him from the bank regarding the return of the cheque as unpaid.”
We received an instruction from you with 5 (five) dishonoured cheques where you instructed us to serve legal notices upon the captioned defaulter. Among them 4 (four) cheques (Nos.6318838-6318841) were dishonoured before 30 (thirty) days from the date of receipt of the instruction. As per the above mentioned provision, the limitation period to serve the legal notice for the 4 cheques is expired. The rest Cheque, No. 6318842, dishonoured on 30.11.2007 will be expired on 30.12.2007.
In the circumstance, we suggest you to place the cheques (Nos.6318838-6318841) again within six months i.e. 30.12.2007 for the encashment and have the dishonour slip. Please instruct us immediately whether we will serve the legal notice separately for the cheque no. 6318842 of which the limitation period would be expired on 30.12.2007.
If you have further query please do not hesitate to inform us.
For: “The Lawyers & Jurists”