To,                                                                       Dt.: 19.11.2024

M/s. XXXXXXXXXX Pvt. Ltd.

XXXXXX Premise Co-op. Society Ltd,

Office at ______________________,

Mumbai – 4000__.

Sub:  Legal Notice for Settlement and Closure of Loan Account.

Dear Sir/Madam,

Under instructions and authority from my client, M/s N Enterprises, having its registered office at xxxxxxxxxx Estate, Varanasi, Uttar Pradesh, I hereby serve upon you the following legal notice for the amicable resolution of issues concerning the settlement and closure of my client’s loan account:

1.            That on 31.01.2023, you the Addressee, sanctioned an Invoice Discounting Facility of INR 40,00,000/- (Rupees Forty Lakhs Only) to my client, under Application No.xxxxxx, for a tenure of 12 months.

2.            My client duly availed of the said facility in good faith and complied with the repayment obligations in accordance with the agreed terms and condition as stipulated in said facility.

3.            As of April, 2024, after consistent repayments, my client had reduced the total outstanding amount to approximately INR 2,00,000/- (Rupees Two Lakhs Only).

4.            In the month of April 2024, an oral settlement was reached between my client and Mr. J, Territory Development Manager (TDM) of you the Addressee regarding the total outstanding.

5.            Under the said agreement, the outstanding dues were agreed to be settled for INR 26,000/- (Rupees Twenty-Six Thousand Only), and my client committed to remitting this amount in May, 2024 to close the loan account.

6.            Unfortunately, in May, 2024, my client was falsely implicated in a criminal case and subjected to wrongful incarceration, rendering him incapable of fulfilling the agreed settlement terms within the stipulated time. This unforeseen and uncontrollable situation prevented my client from honoring the settlement agreement during that agreed period of time.

7.            After being released on bail, my client promptly approached to you the Addressee and your representatives to honor the earlier oral settlement and expressed a readiness to remit the agreed sum of INR 26,000/-. However, my client shock and dismay, that you the Addressee refused to honor the prior agreement and instead imposed exorbitant interest, penalties, and other charges, inflating the outstanding amount to an unreasonable extent.

8.            Despite repeated requests, you the Addressee has failed to provide my client with a clear and detailed statement of accounts reflecting the breakdown of dues, including principal, interest, and charges.

9.            My client remains committed to amicably resolving this matter and seeks to settle the account on terms similar to the earlier oral agreement or any other fair and reasonable terms proposed by you the Addressee, considering the genuine and unforeseen circumstances that caused the delay.

10.        My client values the professional relationship with you the Addressee and seeks to resolve this matter amicably without resorting to unnecessary disputes. Therefore, we request to honor the earlier settlement amount of INR 26,000/-, as agreed. Alternatively, provide a detailed statement of accounts, specifying the current outstanding amount with a clear breakup of principal, interest, penalties, and charges, to enable further discussions.

You the Addressee are required to respond to this legal, if you the Addressee fail to amicably resolve this matter within 15 days from the date of receipt of this notice, my client will be constrained to challenge the imposition of unjustifiable charges and exorbitant interest before the appropriate legal forum or court of law. Seek appropriate legal remedies to settle the dispute, including but not limited to filing complaints before consumer forums, courts, or regulatory bodies, holding you the Addressee liable for unfair trade practices and harassment.

In addition, my client will claim damages for mental agony, financial hardship, and loss of business reputation caused by your unreasonable conduct.

This legal notice is being issued as a final opportunity to resolve the matter amicably and restore mutual trust. My client urges you the Addressee to consider the genuine circumstances of the delay and cooperate in reaching a fair and just resolution.

Please treat this notice with utmost urgency and importance to avoid unnecessary legal disputes.

This notice is issued without prejudice to my client’s rights and remedies under applicable law.

Yours sincerely,

(xxxxxxxxxxx)

Advocate