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LEGAL NOTICE U/S. 138 & 142 OF THE NEGOTIABLE INSTRUMENT ACT ON ACCOUNT OF DISHONOUR OF A CHEQUE RELATING TO PAYMENT OF COMPENSATION IN LIEU OF RENT DUE TO BE PAID PURSUANT TO A SUPPLEMENTARY COMMERCIAL SPACE BUYER’S AGREEMENT READ WITH THE COMMERCIAL SPACE BUYER’S AGREEMENT

 LEGAL NOTICE U/S. 138 & 142 OF THE NEGOTIABLE INSTRUMENT ACT ON ACCOUNT OF DISHONOUR OF A CHEQUE RELATING TO PAYMENT OF COMPENSATION IN LIEU OF RENT DUE TO BE PAID PURSUANT TO A SUPPLEMENTARY COMMERCIAL SPACE BUYER’S AGREEMENT READ WITH THE COMMERCIAL SPACE BUYER’S AGREEMENT 

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: …………

Sh. ________________ 

Proprietor

M/s_____________________

R/o. _____________________                            Addressee


LEGAL NOTICE ON BEHALF OF MY CLIENT M/S
__________________ UNDER SECTION 138 OF THE NEGOTIABLE INSTRUMENT ACT, 1881


On behalf of and under instructions of my Client M/s. ___________ a Company registered under the Company’s Act, 1956 & having its Registered office: _____________ through its __________  ___________ _________________, I serve  upon you the addressee, the following Legal Notice:-

1.    That you the addressee approached my Client above named, and assured & represented to my Client above named as under :-

(a)    that you the addressee are the owner and in peaceful, settled and continuous possession of land measuring ____ Bighas ___ Biswas bearing Khasra No. ____________ (Total Kilas _______), situated at Village ________________ (hereinafter referred to asthe said land’), the nature of title is as referred to in clause (__) of sub-section (___) of Section _____ of __________ Apartment and Property Regulation Act, _________.

(b)    That you the addressee had been granted Licence No. _________ dated __________ by ___________________ (_________), _______________, under Section ______ of ______________________ and Property Regulation Act________ for setting up a Shopping-Cum-Multiplex on the said land.

(c).    That you the addressee are  in process of constructing a Shopping-Cum-Multiplex (hereinafter referred to as ‘_______’), on the land measuring ____ Bighas ___Biswas bearing Khasra No. _______________ (Total Kilas ___), situated at Village ______________________, after getting the plans approved from Town & Country Planning Department, ______________.

(d).    That you the addressee represented my Client above named that the Building Plans for construction of the _______ have already been approved by the Town & Country Planning Department of ____________ and the revised building plans have also been approved by ____________ Development Authority, __________(______________) and the construction of the _______ has already commenced and as on date the  construction of the ______, _________ Floor and ___ Floor (Partly) of the ________ has already been completed.

2.    That you the addressee with the above background, assurances & representations approached my Client above named to purchase Shops/Showrooms Nos. ________________ ________, in all total admeasuring ______ sq.ft., Super Area,  (______ sq.ft. Carpet Area), situated on ___ Floor of  _________, ___________, in the ________,  situated at __________(____________), together with the proportionate, indivisible and impartible rights in the said land and in all the common areas such as lobbies staircases, lifts, corridors, entrances, terraces etc.,  for various sales considerations as per details given hereunder:-


S. NO.

Shop / Showrooms No.

Super Area (Sq.ft.)

Sales Consideration under the Commercial Space Buyer’s Agreement (Rs.)

1




2




TOTAL

______



All the above _____ Shops/Showrooms are hereinafter collectively referred to as the “said Shops/Showrooms”).


3.    That you the addressee also simultaneously represented and assured my Client that the _________Market in the ________ is expected to  open and become operational on or before _________ and once the _________Super Market in the _________ opens and become operational, many other retailers are expected to be attracted and such retailers are also expected to take the said Shops/Showrooms on Rent/Lease and therefore there is a greater possibility of renting/leasing of the said Shops/Showrooms  to Prospective Tenant at the monthly rent of Rs.___/- to Rs.___/- per sq.ft. are quiet bright. You the addressee further assured my Client above named that in case my Client agrees to purchase the said Shops/Showrooms’, you the addressee shall also simultaneously with the execution of the Commercial Space Buyer’s Agreement also execute separate Supplementary Commercial Space Buyer’s Agreement qua each Commercial Space Buyer’s Agreement guaranteeing compensation @Rs.___ per sq.ft.  in lieu of rent for a period of ___ months commencing from _______ to _____ by issue of ___ posted dated cheques and you the addressee assured my Client above named that you shall issue one composite cheque for each month towards compensation in lieu of rent calculated @Rs.____ per sq.ft. for the said Shops/Showrooms . 


4.    That believing the above representations and assurances by you the addressee, my Client above named purchased from you the addressee ____ Shops/Showrooms bearing Shops/Showrooms Nos. _________________________, admeasuring ______ sq.ft., Super Area, ( ______ sq.ft. Carpet Area, sq.ft.), all situated on ___ Floor of ________, _____________, vide separate ____ Commercial Space Buyer’s Agreement all dated _________ executed between M/s. _________, through its Sole Proprietor Shri ______, S/D/W/O Shri ____________, having its office at ______________ i.e. you the addressee and my Client abovenamed M/s. __________________________.  The details of all the _______ Commercial Space Buyer’s Agreement in respect of all these ______ Shops are as under :-


Sno.

Shop / Showrooms No.

Super Area

(Sq.ft.)

Sales Consideration under the Commercial Space Buyer’s Agreement (Rs.)

Amount paid under the Commercial Space Buyer’s Agreement (Rs.)

Balance amount due

(Rs.)

1






2






TOTAL

______





5.    That you the addressee simultaneously with the execution of the ___ Commercial Space Buyer’s Agreement all dated ____________ also executed with my Client abovenamed ___ separate Supplementary Commercial Space Buyer’s Agreement all dated ____________ assuring and agreeing to give compensation in lieu of rent calculated @Rs._____ per sq.ft. to my Client above named.


That the relevant clause Nos. ______ to _________ of one such Supplementary Commercial Space Buyer’s Agreement relating to Shop/Showroom No.______ reads as  under :-


    ___    That the PROMOTER has assured the PURCHASER that the __________ Market in the __________ is expected to be opened and operational on or before __________ and once the _______ Super Market in the _________ is expected to be opened and operational, many other retailers are expected to be attracted and such retailers are also expected to take the Shop/Showroom on Rent/Lease and therefore the chances of renting/leasing of the said Shop/Showroom  to Prospective Tenant are quiet bright.

(ii)    That it is expressly agreed and undertaken by the PROMOTER that since as per the Commercial Space Buyer Agreements dated ___________ the PURCHASER has agreed and undertaken to purchase the said Shop/Showroom Space only as a rented property, the PROMOTER has agreed and undertaken the full responsibility to lease the said Shop/Showroom Space to a Prospective Tenant @Rs.______/- per month  or above (plus Service Tax plus Maintenance Charges (CAM) which shall also be borne and paid by the Prospective Tenant), latest by ________ and in all eventualities, the PROMOTER has agreed and undertaken that the PURCHASER shall start receiving the Lease Rent  of Rs.________/- per month  or above plus Service Tax plus Maintenance Charges w.e.f. _________. 

       (iii)    That it is expressly agreed and undertaken by the PROMOTER with the PURCHASER,  that in case for any reason whatsoever, including any recession in the market conditions, the PROMOTER is not in a position to lease/rent the said Shop/Showroom Space to any Prospective Tenant, at the agreed rent of Rs.________/- per month  or above plus Service Tax and Maintenance Charges (CAM) then the PROMOTER shall himself pay to the PURCHASER, compensation in lieu of rent of Rs._________/- per month  but exclusive of Maintenance Charges (CAM) which shall also be borne and paid by the PROMOTER till the said Shop /Showroom is leased by the PROMOTER to the Prospective Tenant or __________, whichever is earlier, and it is specifically agreed and undertaken that the PROMOTER cannot under any circumstances whatsoever, including recession in the market conditions, escape his liability and/or claim his inability to pay compensation in lieu of rent of Rs.________/- per month  but exclusive of Maintenance Charges (CAM) from ________ to _______ or till the said Shop/Showroom is leased by the PROMOTER to a Prospective Tenant whichever is earlier. 

     (iv)    That as a matter of guarantee for payment of compensation in lieu of rent  of Rs.________/- per month,  the PROMOTER has agreed to issue and has issued to the PURCHASER 24 post dated cheques of Rs.______/- each for the period  _______  to _______ towards compensation in lieu of rent, and the PROMOTER has agreed and undertaken to ensure that each and every cheque is honoured as and when presented for payment and in case any of the said post dated cheque is dishonoured, the PROMOER shall be liable for consequences.

(v)    That it is expressly agreed between the PROMOTER and the PURCHASER that the liability of the PROMOTER to pay to the PURCHASER compensation in lieu of rent of Rs._______/- per month  but exclusive of  Maintenance Charges (CAM) shall be restricted from ______ to __________ or till the said Shop/Showroom is leased by the PROMOTER to a Prospective Tenant whichever is earlier and the PROMOTER shall not incur any such liability thereafter.

 (vi)    That it is expressly agreed between the PROMOTER and the PURCHASER that a period _________ to ________ for payment of compensation in lieu of rent of Rs.__________/- has been worked out on presumption that Big Bazaar Super Market is the ___________ has become operational and open to public on or before ________ (i.e. 6 months prior to _______),  and in case for any reason whatsoever the Big Bazaar Super Market does not become operational on or before ___________ (i.e. __ months prior to ________), and its operation and public opening is delayed by beyond _______ (i.e. ____ months prior to _________), then the period of compensation in lieu rent upto _________ by the PROMOER to the PURCHASER shall stand extended by the number of months the operation and public opening of Big Bazaar Super Market is delayed beyond __________. However it is agreed between the PROMOER and the PURCHASER that the starting date of payment of compensation in lieu of rent shall remain __________ (i.e. after one year from the date of execution of this Agreement) which shall not be affected and /or extended by the delay in operation and public opening of the Big Bazaar Super Market.


That similar clause No._____ to ___ have been inserted in all the ____ Supplementary Commercial Space Buyer’s Agreement all dated ____________ relating to all the ___Shops/ Showrooms. 


6.    That it is clear from the above clause ____ each of the ___Supplementary Commercial Space Buyer’s Agreement all dated ____________ that you have agreed to pay to my Client abovenamed compensation in lieu of rent as per the amount mentioned in clause ___________ read with other clauses of all the ___Supplementary Commercial Space Buyer’s Agreement all dated ____________.  That the compensation in lieu of rent payable by you the addressee to my Client abovenamed under each of the said ___Supplementary Commercial Space Buyer’s Agreement is as under :-


Sno.

Shop / Showrooms No.

Supplementary Commercial Space Buyer’s Agreement Dated

Super Area

(Sq.ft.)

Compensation per month in terms of Clause ______ of the Supplementary Commercial Space Buyer’s Agreement (Rs.)

1





2





TOTAL

______



7.    That you the addressee have issued and handed over to my Client above named 24 cheques of Rs._________/- each towards compensation in lieu of rent in respect of the aforesaid ___Shops/Showrooms for the period _______ to _______  as agreed under each of the ___Supplementary Commercial Space Buyer’s Agreement dated ____________, as per details given hereunder:-

S No

Ch No.

Date

Drawn on

Amount of Cheque towards compensation in lieu of rent (Rs.)

Compensation relating to the period

1






2






3







8.    That from para ___ above it is clear that you the addressee had issued Cheque No._____ dated _____ for Rs._________/- drawn on __________,  and payable at _______ through _____________ clearing,  towards compensation in lieu of rent payable to my Client above named for the month of _______ to _______ in pursuance to the above ___Supplementary Commercial Space Buyer’s Agreement all dated ____________ in respect of all the ___Shops/Showrooms, and the said cheque was issued as one Composite Cheque towards compensation payable in lieu of rent in respect of the ___Shops/Showrooms, as per the details given hereunder :-


S.No.

Shop / Showrooms No.

Agreement Date

Carpet Area

Super Area

Compensation per month in terms of Clause ______ of the Supplementary Commercial Space Buyer’s Agreement

1






2






3






TOTAL

Rs._________/-


9.    That the aforesaid Cheque No._________ dated _________for Rs._________/- drawn on _________ was deposited by my Client with its Banker, _______________ on _____ in its Account No.________.  However, the said Cheque No._________ dated _________for Rs._________/- drawn on _________,  when presented for clearing  was dishonoured by _________, and the banker of my Client abovenamed i.e. ________________ Bank informed my Client abovenamed vide Return Memo Report (CTS Clearing) dated _______ sent to my Client abovenamed,  that the above cheque has been dishonoured with the reason “ ______”. 


10.    That the aforesaid Cheque was presented by my Client abovenamed during the period of its validity.


11.    That you, the addressee, have issued the above Cheque despite your knowledge that you had no funds in your account and you had an intent to deceit, cheat and defraud my Client abovenamed. Therefore, you the addressee, have deceived, defraud & cheated my Client abovenamed and it seems that you do not want to pay the amount of Rs._________/- to my Client abovenamed due towards the compensation in lieu of rent for the period of _____to ____ payable as per clause ________ of the said read with other clauses of all ___Supplementary Commercial Space Buyer’s Agreement all dated ____________, and hence your act is dishonest malafide and cheatful.


12.    That, you the Addressee being the signatory to the dishonoured cheque, have therefore rendered yourself liable to be prosecuted for having committed the offences under Section 138 of the Negotiable Instruments Act.


13.   Take further notice that you the Addressee were fully aware of the fact that there are insufficient funds with your Bank and you deliberately and willfully issued the aforementioned cheques to cheat our Client and therefore you are also liable to be prosecuted under various provisions of Indian Penal Code.

AND THEREFORE, I CALL UPON YOU to make good the payment of Rs._________/- (Rupees ___________ Only) within a period of ____ (_____) days from the date of receipt of this notice, failing which, I have definite instructions from my Client to take necessary legal action against you in the competent court of law, under Section 138 of the Negotiable Instrument Act, 1881 and in that event, you shall be liable for all the cost and consequences resulting therefrom.  


Take further notice, that the present notice only relates to your liability, under the Negotiable Instruments Act, 1881 arising out of the dishonoured cheque as mentioned hereinabove. However, my Client reserves their rights to pursue other Civil and Criminal legal remedies, against you, as available in law.


14.    Take Notice Accordingly. A copy of this Legal Notice has been retained for necessary action, if any.

    


 (__________)

    Advocate 



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