X, with the intention of disposing of his old stock of outdated machines, requested Y to place them in his shop for sale. Y handed over a blank cheque to X to be used only upon his instructions, after sold out of all tho

Reply to Legal Notice under Section 138 of Negotiable Instruments Act, 1881 Name of the Advocate XXXXX Advocate, New Delhi -XXXXXX Date: 10.04.2024 To, Sh ............, Advocate ............ Delhi High Court New Delhi - xxxxxx SUB: REPLY TO YOUR LEGAL NOTICE U/S 138 NEGOTIABLE INSTRUMENT ACT, 1881 DATED ............ Dear Sir Your legal notice dated ............ has been placed before me by my client Mr. Y at Connaught Place, New Delhi-xxxxxx and I, the undersigned, have been instructed to reply to your said notice by my client on his behalf as under: A. That, at the outset you are being informed that the notice under reply, you have sent on behalf of your above said client, contains false and frivolous facts provided by your said client against my client, thereby your notice under reply deserves to be withdrawn, with unconditional apology by your client, because the claim made by you is without any basis and is based upon concocted facts, as no claim is made out against my client and in favour of your client. B. That, in fact, my client did not place any order for supply of machines whatsoever, as alleged by you. But, with a view to dispose off your old stock of outdated machines, you requested my client to place them at his shop for sale. Keeping in view old relations my client agreed to your client's proposal, which was subject to the condition that payment would be made only after those machines were sold out. However, those machines were not only outdated, but were also mechanically faulty, because of which till date they are lying with my client, which your client is at liberty to take back with two days' prior notice. It is pertinent to mention here that the cheque in question was handed over by my client blank and the same was to be used only upon instructions of my client, after he could sell out your all those machines. C. That, however, your client has cheated my client by misusing that cheque which is not in the handwriting of my client. As a matter of fact, your client has committed fraud in the matter and, consequently, is liable to be proceeded under the relevant provisions of law. D. That, therefore, it is denied that the cheque in question was issued by my client to your client in discharge of any liability. Rather, your client has misused that blank cheque with ulterior motives, after forging the same. Reply on merits That the contents of para 1 of your legal notice are wrong and denied and whatsoever is stated above is reiterated. It is denied that my client purchased from you client any machines whatsoever. Rather, my client helped your client to keep your machines in his godown/shop for disposal. Therefore, it is denied that the cheque in question was issued in discharge of any liability towards my client, as alleged in this para. That the contents of para 2 are denied for want of knowledge. However, it is reiterated that my client never issued any cheque, in the manner as alleged by you. That, in reply to para 3 of your legal notice, what is stated above is reiterated. It is submitted that your client was not entitled to use that cheque for encashment and deposit the same in his bank. That the contents of para's 4 & 5 are denied for want of knowledge. However, it is reiterated that any cheque was issued in discharge of any liability towards my client to your client. That the contents of para 6 need no comments. However, it is denied that my client committed any offence whatsoever. In view of aforesaid facts and circumstances, you are being advised to further advice your client to withdraw the said notice under reply and further advise him not to drag my client in any frivolous litigation, failing which my client shall be constrained to contest the same, besides proceeding against your client under the relevant provisions of law, at the costs, risks and consequences of your client only. Copy kept for future record and reference. Yours Sincerely, Advocate