LEGAL NOTICE U/S. 138 & 142 OF THE NEGOTIABLE INSTRUMENT ACT ON ACCOUNT OF DISHONOUR OF CHEQUE ISSUED PURSUANT TO FULL AND FINAL SETTLEMENT OF ACCOUNT ARISING OUT OF A COLLABORATION AGREEMENT EXECUTED BETWEEN A BUILDER AND THE FINANCIER

 LEGAL NOTICE U/S. 138 & 142 OF THE NEGOTIABLE INSTRUMENT ACT ON ACCOUNT OF DISHONOUR OF CHEQUE ISSUED PURSUANT TO FULL AND FINAL SETTLEMENT OF ACCOUNT ARISING OUT OF A COLLABORATION AGREEMENT EXECUTED BETWEEN A BUILDER AND THE FINANCIER.

A.B.C. Advocate Supreme Court / ……………. High Court (Enrollment No……………………..)

Address: ………………………………                ……………………………… Email: …………….…………..………. Mob. No……………………………….. Landline No..………………………… PAN:…………………………………….  Aadhar No…………………………… GSTIN No:……………….…………….

Regd. A.D/Speed Post/ Courier

Dated: …………

M/s  _____________________

A Company incorporated under the Companies Act, 1956

 Having its Registered Office at:

__________________________. 

Service to be effected through

its  Principal Officer/Managing Director. 

___________________

OUR CLIENT: M/s _______________, having its at ____________________________. 

Dear Sirs. 

Under instructions from and on behalf of our client we hereby serve you with the following notice. 

1. That you the Addressee named above, made representations to our Client as accomplished and renowned builders with an expertise in the business of Real Estate, Development, Construction of multi-storey Housing & Commercial Complexes, Infrastructural development and civil construction works, having completed various projects within National Capital Territory and other parts of the country. 

2. That you the above named Addressee launched a project of residential flat in the Group Housing Project under the name and style of ______ at Plot No. ____________________- and another project under the name and style of ______ at Plot No. ______. 

3. That believing the representations made by you the above named Addressee, our Client applied for allotment of Apartments vide requisite applications, and thereafter considering the applications of our Client, you the above named Addressee vide respective allotment letters, allotted Service Apartment No. ______ having super Area of ______ Sq. ft and Apartment No. ___ of ___ on ___ Floor having super Area of ______ Sq. ft. in ______ and Apartment No ___, ___ Floor having super area of ___ Sq. ft in ___.

4. That you the Addressee named above, projected the cost of the flats at Rs ______/- (Rupees ______), inclusive of Service Tax and accordingly our Clients paid full amount of Rs.______/-, vide cheque No.______ in favour of AA, dated ______ drawn on ______, ______, which amount was duly received and encashed by you the above named Addressee, and against which respective Receipts dated ______ were issued by you the Addressee. It is not out of place to mention that the cheque in question was duly encashed by you the above named Addressee.

5. It is pertinent to mention that at the same time, you the above named Addressee offered to buy back the above flats at a pre-settled and determined amount of Rs.______/- (Rupees ______ Only), and accordingly, our Client accepted the offer made by you the above named Addressee. pursuant to which an Articles of Agreement dated ______ was entered into between our Client and you the above named Addressee. Further, you the above named Addressee gave an unconditional guarantee/assurance to buy back the above three flats by ______at the pre-settled and determined amount, as mentioned above. It was further agreed that in case of any delay in making the buyback payment, you the above named Addressee would also be liable to pay a penal interest @ __% p.a. on the delayed payment. It is pertinent to mention that in order to make the buyback payment, you the above named Addressee issued post dated cheques for an amount of Rs. ______/- (Rupees ______ Only) in favour of our Client. 

Clause ________ of the Agreement are reproduced herein below for ready reference. 

1. CLAUSE __: 

“That the first party gives an unconditional guarantee to buyback the above allotted flat by ___________ at a pre-settled and determined amount of Rs. _________/- (Rupees ______________) only to be paid by the first party to second party………… in case of any delay in above mentioned payments a penal interest ________% p a. will be applicable for the delayed period” 

2. CLAUSE __: 

That the First Party has also issued post dated cheques for the buyback amount of Rs. _________/- (Rupees ______________________) only

6. That as per Clause _______ of Articles of Agreement, you the above named Addressee was under an obligation to handover the possession of the fiat within ___ months from the data of execution of the Agreement Further, in clause ______ of Articles of Agreement, it was agreed that in case you the above named Addressee failed to make payment in terms of clauses _________ within ____ days from the due date i.e. ____, you the above named Addressee shall execute the sate deed and complete other necessary formalities for transfer of the flats in favour of our Client. 

Clause ____&_____ of the Agreement are reproduced herein below for ready reference: 

1. CLAUSE __: 

The project is already sanctioned and the possession of the flat will be handed over to the second party within ___ months from the date of this agreement. 

2. CLAUSE ___: 

“The First party has also unconditionally agreed that in case, it fails to make any of the payment as mentioned above, than after a period of ____ days from the due date, it shall executed the sale deed and complete such other formalities as may be necessary for effecting transfer of legal ownership of the flat to the second party or its nominee or any other pony Introduced by the second party………

 

7. The post dated cheques issued by you the above named Addressee towards buy back of the above flats were returned unpaid with the remarks “________”, by reason of which you the Addressee failed to buyback the flat by _______, thereby failing to honour and fulfill your contractual obligations as stipulated in Articles of Agreement dated ______. For this reason, our Clients reserve their right, to initiate appropriate proceedings under Section 138 of the Negotiable instrument Act independent of the present notice and the precept notice may not be construed as a waiver to the lawful rights available to our Clients in accordance with law. 

8. You the above named Addressee have failed to make the payment within the stipulated period of time and as such consequent upon deliberate breach of contractual obligations as well as consequent upon dishonor of cheques and expiry of stipulated period of buyback, our Client in exercise of its right to retain the flats, terminates clause ________ (buy back clause of the Agreement) of the Article of Agreement dated ______, which has otherwise also expired by efflux of time. As such our Client is restored back to the original position with the primary right over the Flats in question on the same terms and conditions, as principally agreed, without any escalation, additional charges, etc. Our Clients preserve and withhold its right over the said flats.

We being as instructed by our Clients, hereby inform you that our Client herewith terminates clause ___ (buy back clause of the agreement) with immediate effect and our Clients do not wish to sell the Apartment No. _________ of ______ type on ___ floor having super Area of ______ Sq.ft. Apartment No.___ of ______ type on ___ Floor having super Area of ______ Sq.ft. in ______ at Plot No._______ , Sector-____, ________ and Apartment No. ___, ___ Floor having super area of ___ Sq.ft. in ___ at Plot No. _______, Sector-______, ______., to you the above named Addressee. Further, by way of this notice, our Client calls upon you the above named Addressee to deliver the possession of the above flats and to execute the necessary ownership documents in favour of our Client.

Copy of this notice has been retained in our office for future reference.

[______________]  

      ADVOCATE

For _______________

NOTE:    The present notice is without prejudice to rights and contentions of our Client and our Client reserves its right to initiate appropriate legal action within the legal rights available to our Client and the present notice shall not construed as waiver of right of our Client.