Legal notice

What is Legal Notice?

A legal notice is a formal communication expressing an individual’s or entity’s intent to initiate legal proceedings against another party due to damages or loss caused by the recipient. It can be issued by an individual directly or through a legally authorized representative, mainly a lawyer. It also helps in making the recipient aware about the grievances of the sender and serves as a last warning to fulfill the expected conditions to avoid a legal proceeding in the court.

The term ‘Notice’ originates from a Latin word “Notitiam” which means “Knowledge”. It broadly means and includes information, announcement, or direction etc. However, legal notice is more formal and deals with communication between private parties to initiate legal proceedings. On the other hand, Court notices are issued by the court either during or after the legal proceedings to inform the parties of court proceedings about court actions, hearings, or judgements.

The primary purpose of legal notice is to officially communicate and acknowledge one’s legal rights and inform the receiving party about a specific issue or matter. A legal notice is filed only in civil cases while in criminal cases, the action against the wrongdoer has been brought by the government.

A legal notice generally contains:

• The sender’s account of events that led to the dispute.
• A detailed explanation of the incident in question.
• The legal grounds on which the sender is relying upon to claim their remedy from the appropriate legal or dispute resolution forum.
• A specified period of time within which the recipient is expected to respond in the manner prescribed by the sender.
• The conveyance of the sender's intention to pursue legal action if the matter is not resolved.

Official Definition of Legal Notice

Legal Notice is a pre-judicial process which parties or the government adopt to notify the receiving party about the specific issue. However, Indian law lacks a single codified definition of legal notice, it derives its meaning from provisions that mandate or endorse its use.

Legal Provisions related to Legal Notice

Code of Civil Procedure, 1908

Section 80, CPC (Code of Civil Procedure), 1908 requires a suit by an individual or entity to obtain a relief against the Government or any public officer when the alleged act has been done in official capacity. The legal notice has to be served at least two months before filing the suit. It serves the purpose of facilitating pre-litigation dialogue by giving the concerned public authority or government entity a chance to address or resolve the issue amicably. In matters involving urgency and compelling reasons, the mandatory notice period of two months can be ignored.

Negotiable Instruments Act, 1881

According to Section 138(b), The Negotiable Instruments Act, 1881, In the case of dishonor of cheques, the aggrieved party can send a demand notice within 30 days of receiving the information about the non-payment of cheque. If the drawer fails to pay within 15 days of receiving the notice, legal proceedings can be initiated.

Arbitration and Conciliation Act, 1996

Section 21, Arbitration and Conciliation Act, 1996 though not explicitly but effectively indicates that to initiate arbitration proceedings between parties, there is an obligation to serve a notice to the other party. This will make the recipient aware about the invocation of a dispute resolution clause in an agreement and enable them to prepare for their defence. In the case of Moneywise Financial Services Pvt. Ltd Vs. Ishwari Health Care Pvt Ltd and Ors., the High Court accepted the notices that had been sent by the petitioner via post and email to the respondent under Section 21, Arbitration and Conciliation Act and appointed an arbitrator to start the proceedings.

Industrial Disputes Act, 1947

Sections 2A and 9A, Industrial Disputes Act, 1947 put forth a requirement for legal notices when an employer undertakes changes in working conditions or when employees raise disputes regarding termination or retrenchment.

Copyright Act, 1947

Clause (c) of Section 52(1) of the Copyright Act, and Rule 75 of the Copyright Rules, 2013, the copyright owners are required to send a comprehensive, documented legal notice to intermediaries (typically a host or website owner) who has stored or shared their copyrighted content without permission, before initiating any infringement proceedings against the intermediaries. These provisions outlines both content and conditions that such a notice must include and requires that the copyright owner shall file a court case for copyright infringement within 21 days of sending the notice. If they fail to do so, the intermediary is not required to remove the content.

Types of Legal Notice

There are different forms of legal notices each addressing a specific purpose according to the legal matter at hand. Some of the usual and frequently encountered categories of legal notices are explained below. However, the list is not exhaustive and each specific type of legal notice will depend on the concerned legal issue and desired outcome. Notwithstanding their varied forms, all legal notices serve the fundamental purpose of asserting legal rights.

Cease and Desist Legal Notice

These are pre-litigation notices and are issued when the sender is of the view that the recipient of the notice is infringing their rights by engaging in an activity that constitutes unlawful activity or is of tortious nature. The notice is sent to prevent the recipient from performing that specified activity immediately, otherwise face judicial proceedings. Legal Provisions- Section 80, CPC.

Demand Notices

This type of notice requires the receiving party to perform specific acts, such as satisfaction of monetary obligations, restitution of property, or fulfillment of contractual duties. Such type of notice usually outlines the legal consequences of non-compliance by the recipient.

Law Provision/s Purpose of Notice Negotiable Instruments Act, 1881 Section 138 Mandatory notice for payment after cheque bounce Insolvency and Bankruptcy Code (IBC), 2016 Section 8(1) Notice by creditor to debtor before initiating insolvency SARFAESI Act, 2002 Section 13(2) Notice to borrower before enforcing security interest Income Tax Act, 1961 Section 156 Demand for payment of assessed tax

Legal Notice for Eviction of Tenant

Landlords serve such notices to tenants to effectuate termination of the landlord-tenant (tenancy) relationship. The notice specifies the timeline within which the tenant has to vacate the possession of the premises, or face legal consequences.

Law Relevant Provision/s Purpose Transfer of Property Act, 1882 Section 106 Requires a 15-day notice (for immovable property used for agriculture/manufacturing) or 30-day notice (for others) to terminate lease. Public Premises (Eviction of Unauthorized Occupants) Act, 1971 Section 4 and 5 Estate Officer issues show cause and eviction notices to unauthorized occupants.

Copyright Infringement Legal Notice

These types of notices are served to individuals or organizations who are using copyrighted materials without the sender's permission. The notice demands cessation of unauthorized use and may seek monetary damages/ compensation for infringement.

Defamation Notices

This notice can be issued when an individual or organization believes that they have been subjected to false, misleading or damaging statements. The notice may demand retraction, issuance of an apology from the receiving party.

Law Relevant Provision/s Purpose Civil Procedure Code, 1908 Section 80 Provides a relief against government officials/entities and requires a two month legal notice before suing a government officer/entity for defamation.

Legal Notice for Breach of Contract

These notices are served when one contracting party alleges material breach of contract or failure to comply with their obligations under the agreement, by the counter-contracting party. The notice identifies specific contractual violations and demands cure within a prescribed period.

Legal Notice for Wrongful Termination

Former employees may issue such notices upon employers by alleging unlawful termination from their job and can seek compensation or other legal remedies.

Legal Notice for Harassment

The victims who have faced harassment may issue formal legal notices to their harasser/s, demanding cessation of such behavior and warning of potential legal ramifications for continued misconduct.

Legal Notice for Trespass

A legal notice may be served by the property owners to the individual/s who have entered their premises without permission.

Legal Notice for Product Liability in Consumer Matters

Consumers may serve a legal notice to the manufacturers or distributors alleging defective products and can seek compensation or product remediation.

Legal Notices as defined in Case Laws

Essential Ingredients of Legal Notice

Kamla Nehru Memorial Trust & Anr Versus U.P. State Industrial Development Corporation Limited & Ors.

The court in Kamla Nehru Memorial Trust & Anr Versus U.P. State Industrial Development Corporation Limited & Ors. has held that if a notice is fulfilling all the essential ingredients of notice and has effectively conveyed the default of the receiving party, its potential consequences, and the intent to take legal proceedings, then the notice should be considered as “legal notice” even if it has not been labeled as “legal”.

Intellectual Property Rights infringement

My Space Inc. v. Super Cassettes

The Division Bench of the Delhi High Court in My Space Inc. v. Super Cassettes ruled that intermediaries cannot be held liable for infringing content unless they are provided with specific and actual knowledge of such infringement through legal notice. The Court clarified that general awareness or suspicion about possible infringement does not amount to “knowledge” under the law. Thus, for liability to attach, a content owner must directly notify the intermediary of the infringing material, enabling the platform to act on that information.

Midas Hygiene Industries Pvt. Ltd. and Anr. v. Sudhir Bhatia and Ors

In Midas Hygiene Industries Pvt. Ltd. and Anr. v. Sudhir Bhatia and Ors, the Supreme Court (SC) held that when a party is found to be engaging in clear and deliberate infringement of intellectual property rights, particularly trademarks, injunctions should be granted immediately to prevent continued harm. The Court emphasized that delay or acquiescence cannot be a ground to deny an injunction in cases involving ongoing infringement. The decision reinforced the preventive role that legal tools like cease and desist notices play in justifying injunctive relief.

Legal Notice via digital platforms

Central Electricity Regulatory Commission v. National Hydroelectric Power Corporation Ltd. (2021)

The Supreme Court provided that email is a valid mode of service, more so in cases of commercial disputes, dictating that it is the responsibility of the parties to frequently check their respective registered email addresses.

Rajendra v. State of U.P.

The Hon’ble Allahabad High Court in Rajendra v. State of U.P., while discussing an issue on whether the law necessitates specifying the date of notice service upon the drawer in complaints under Section 138 of the Negotiable Instruments Act, provided a significant ruling concerning the delivery of demand notices via digital platforms like emails and WhatsApp in our computerized era.

Examining various provisions, Court noted that while Proviso (b) of Section 138 of the N.I. Act mandates a written notice, it doesn't prescribe a specific mode of delivery. Section 94 of the N.I. Act allows for oral or written notice, with the written form possibly sent by post, yet it doesn't explicitly limit it to postal delivery. Additionally, Hon’ble Court also invoked Section 4 of the IT Act, which clarifies that notices under Section 138 of the N.I. Act can involve emails or WhatsApp if they can be subsequently referenced. Furthermore, it referred to Section 65(B) of the Indian Evidence Act, 1972, acknowledging the admissibility of electronic records, further affirming the validity of digital communications such as emails and WhatsApp for such notices. Accordingly, it concluded that a demand notice dispatched to the drawer of a check via 'email or WhatsApp' under Section 138 of the Negotiable Instrument Act for the dishonour of a check is deemed valid. It shall be considered dispatched and served on the same date if it fulfils the criteria outlined in Section 13 of the Information Technology Act.

SBI Cards (P) Ltd. v. Rohit Jadhav

In SBI Cards (P) Ltd. v. Rohit Jadhav, the Bombay HC has held that if a person receives and opens a legal notice on WhatsApp, then it will be deemed to have been properly served. The Supreme Court of India has recognized the validity of legal notices which have been sent via different digital platforms like WhatsApp, Telegram, Email, or Fax. The appearance of two blue ticks in WhatsApp is treated as evidence that the recipient has received and read the notice.

Service of Legal Notice

Jagdish Singh v. Natthu Singh

In Jagdish Singh v. Natthu Singh, the court held that if a notice has been rejected by the addressee, then it can be presumed that it has been served. In Section 27 of General Clauses Act, 1897, there is a statutory presumption that service is complete when a notice is sent by registered post to the correct address. The SC has clarified that if a notice is returned with endorsements such as “refused”, “addressee not at home”, “house locked”, or “shop closed”, the court will presume that the notice has been delivered effectively. However, this presumption does not limit the recipient’s power to rebut. In V. Raja Kumari v. Subbaram Naidu, it was held that the receiving party can present evidence to show that they were unaware that the notice had reached their address.

Technical Defects in Legal Notice

State of A.P. v. Gundugola Venkata

In State of A.P. v. Gundugola Venkata, the SC held that minor errors in the drafting or delivery of legal notice under Section 80(3), CPC do not render the notice invalid, nor can they serve as a justification for the dismissal of the suit.

Himachal Steel Rerollers and Fabrication v. Union of India

In Himachal Steel Rerollers and Fabrication v. Union of India, the Allahabad HC had clarified that a plaintiff intending to sue the government has two options: (i) to serve a two-month advance notice as prescribed under Section 80, CPC, or (ii) in cases requiring urgent relief or involving compelling reasons, the sender can seek the court’s permission to file the suit without such notice.