PRACTICE DRAFTING LAB•Gujarat LL.B Clinical Paper IV

AI Legal Drafting & Pleading Studio

Master drafting of statutory legal notices, plaints, written statements, bail petitions, and writ applications with real-time AI critique and model draft benchmarks.

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Commercial LawExam Weightage: 15 Marks

Problem Fact Scenario:

Client ABC Traders sold goods worth Rs. 2,50,000 to XYZ Enterprises on 1st July 2026. XYZ issued Cheque No. 445566 drawn on SBI, Rajkot Branch. The cheque was dishonoured with remark 'Funds Insufficient' on 15th August 2026. Draft a formal statutory legal notice demanding payment within 15 days as required by Section 138 of the Negotiable Instruments Act 1881.

Your Legal Draft Editor

To,
XYZ Enterprises,
Through its Managing Partner,
Industrial Estate, Rajkot.

LEGAL NOTICE UNDER SECTION 138 OF THE NEGOTIABLE INSTRUMENTS ACT, 1881

Under instructions from and on behalf of my client, ABC Traders, having its office at Ahmedabad, I hereby serve upon you this Statutory Legal Notice:

1. That my client supplied commercial goods to you under Invoice No. 102 dated 01/07/2026 for a total sum of Rs. 2,50,000/-.
2. In discharge of your legally enforceable debt and liability, you issued Cheque No. 445566 dated 10/08/2026 for Rs. 2,50,000/- drawn on State Bank of India, Rajkot Branch.
3. My client presented the said cheque for encashment, but the same was dishonoured and returned unpaid with the bank memo remark "Funds Insufficient" on 15/08/2026.
4. I therefore call upon you to pay the said sum of Rs. 2,50,000/- to my client within 15 (fifteen) days from the receipt of this notice, failing which my client shall initiate criminal prosecution against you under Section 138 of the Negotiable Instruments Act.

Dated: 20th August 2026
Advocate for Client

174 Words

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