Understanding and Issuing a Legal Notice to a Company

by  Adv. Priyanka Sampathy  




7 mins


Legal Notice to Company

A legal notice to a company is not merely a piece of correspondence; it’s a legal instrument that communicates grievances, demands, or other critical information to the management of a company. This formal communication is generally initiated when disputes arise, contractual obligations are breached, or there’s a need for legal intervention in some form.

Understanding the Legal Notice Process

1. Identifying the Cause of Action:

Before delving into the legal intricacies, it is crucial to identify the cause of action. This could range from contractual breaches to non-compliance with statutory obligations or any other action that has led to harm, loss, or dissatisfaction.

2. Consulting Legal Counsel:

Seeking legal advice is a cornerstone in the process of issuing a legal notice. A legal professional can provide insights into the relevant laws, guide in framing the notice, and advise on the potential course of action.

3. Drafting the Notice:

The actual drafting of the legal notice is a critical step. It should be approached with precision and clarity. A well-drafted notice should provide a detailed account of the issue, reference applicable legal sections, and clearly state the desired remedy.

4. Sending the Notice:

The notice, once drafted, is typically sent to the company through recognized legal channels. Registered post or courier with acknowledgement receipt is commonly used to ensure that there is proof of delivery.

Need Expert Guidance on Legal Notices? Navigating the complexities of issuing a legal notice can be challenging. Our team of legal experts is here to guide you through every step, ensuring your notice is precise, effective, and legally sound.

Legal Sections Relevant to Notices to Companies

Understanding the legal sections that can be invoked when issuing a legal notice is crucial. The choice of sections depends on the nature of the dispute and the legal remedies sought.

1. CPC Section 80:

While not directly applicable to private companies, Section 80 of the Civil Procedure Code (CPC) mandates a two-month notice before instituting legal proceedings against the government or public officers. This underscores the importance of prior notice in certain situations.

2. Indian Contract Act – Section 73:

This section deals with compensation for loss or damage caused by a breach of contract. It becomes relevant when the dispute centers around a contractual obligation that has been violated.

3. Consumer Protection Act – Section 2(1)(o):

In cases involving consumer disputes, Section 2(1)(o) of the Consumer Protection Act may come into play. It mandates a prior notice before filing a complaint against a company.

4. Companies Act – Section 434:

Section 434 of the Companies Act provides for the jurisdiction of the National Company Law Tribunal (NCLT) over certain matters. If the dispute involves matters within the purview of the NCLT, reference to this section may be necessary.

5. Arbitration and Conciliation Act – Section 21:

In cases where there is an arbitration clause in the agreement between the parties, Section 21 of the Arbitration and Conciliation Act becomes relevant. It mandates that a party seeking arbitration should, before or during proceedings, communicate its intention to the other party.

The Anatomy of a Well-Crafted Legal Notice

Issuing a legal notice is not a mundane task; it requires a meticulous approach. Let’s delve into the key components that constitute a well-crafted legal notice.

1. Proper Heading and Addressing:

The notice should begin with a proper heading, clearly indicating that it is a legal notice. The name and address of the sender and recipient should be accurate.

2. Reference to Applicable Law:

Clearly state the legal provisions under which the notice is issued. This is crucial for establishing the legal standing of the notice.

3. Factual Background:

Provide a detailed factual background leading to the issuance of the notice. Include dates, events, and any relevant context to make the recipient fully aware of the situation.

4. Statement of Grievances:

Explicitly state the grievances or issues that have led to the notice. Be concise yet comprehensive in articulating the problems faced by the sender.

5. Legal Demands:

Mention the legal remedies or actions expected from the recipient. This could include rectification of a breach, compensation, or any other specific actions.

6. Supporting Documents:

Annex relevant documents that support the claims made in the notice. This may include contracts, communication records, invoices, or any other evidence.

7. Deadline for Response:

Specify a reasonable deadline by which the recipient should respond. This adds a sense of urgency and provides a clear timeframe for resolution.

8. Consequences of Non-Compliance:

Mention the legal consequences that may follow if the recipient fails to comply with the demands within the stipulated timeframe. This could include legal proceedings or other actions.

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Format of Legal Notice for Corporate Company

[Your Name] 

[Your Address] 

[City, State, ZIP Code] 


[Company Name] 

[Company Address] 

[City, State, ZIP Code]

Subject: Legal Notice for Breach of Contract

Dear [Company Name],

I trust this letter finds you well. I am writing to address certain concerns regarding our contractual agreement dated [Date] and to bring to your attention the need for immediate resolution to prevent legal repercussions.


I entered into a contractual agreement with [Company Name] on [Date] to provide [specific services or details of the agreement]. It has always been my intent to fulfill my obligations and contribute positively to the success of our partnership.


Unfortunately, I have identified instances where there appears to be a breach of the contractual terms. Specifically, [mention the nature of the breach – e.g., non-payment for services rendered, failure to deliver agreed-upon goods, etc.].

Legal Grounds:

In accordance with the terms outlined in our contract, particularly referring to Section [X] – [Name of Section], any violation constitutes grounds for legal action. I believe the actions taken by [Company Name] are not in adherence to the mutually agreed-upon terms.


Given the aforementioned grievances, I hereby demand [specify your demands – e.g., rectification of the issue, payment of outstanding dues, etc.] within [reasonable time frame, e.g., 14 days] from the date of receipt of this notice.


It is important to highlight that non-compliance with the demands stated herein will leave me with no alternative but to pursue legal remedies available, including initiating legal proceedings to seek damages for breach of contract.

Your Contact Information:

I am open to a constructive resolution and can be reached at [Your Phone Number] or [Your Email Address] to discuss this matter further.


[Your Signature]

[Your Typed Name] 

[Your Company/Organization, if applicable] 

[Your Contact Information]

Understanding your legal options is crucial before issuing a legal notice. Our experienced attorneys can help you explore all possible avenues and decide on the best course of action.

Responding to a Legal Notice: A Company’s Perspective

When a company receives a legal notice, its response is equally critical. Here’s a guide on how companies should approach and respond to legal notices.

1. Promptness is Key:

Respond to the legal notice promptly. Delays can be interpreted negatively and may lead to further escalation.

2. Consult Legal Counsel:

Seek legal advice before formulating a response. Legal professionals can provide insights into the merits of the notice and guide on the appropriate course of action.

3. Acknowledge Receipt:

Always acknowledge the receipt of the legal notice. This can be done through formal communication, confirming that the notice is being duly considered.

4. Thorough Examination:

Thoroughly examine the contents of the legal notice. Understand the grievances, demands, and the legal basis on which the notice is issued.

5. Formulate a Comprehensive Response:

Craft a detailed and comprehensive response addressing each point raised in the notice. If the claims are valid, consider proposing an amicable resolution.

6. Seek Mediation or Arbitration:

In cases where an amicable resolution is possible, propose mediation or arbitration. This can be a faster and more cost-effective way to resolve disputes.

7. Maintain Professionalism:

Regardless of the nature of the dispute, maintain professionalism in all communications. Avoid any language or actions that may aggravate the situation.

8. Document Everything:

Keep a meticulous record of all communications related to the legal notice. This includes both incoming and outgoing correspondence.

Legal Proceedings: When Legal Notices Escalate

In some instances, legal notices may not lead to amicable resolutions. This could result in the initiation of formal legal proceedings. Understanding the potential legal proceedings is crucial.

1. Civil Litigation:

If the dispute falls within the purview of civil law, civil litigation may be initiated. This involves filing a lawsuit in a civil court seeking legal remedies.

2. Arbitration:

In cases where there is an arbitration clause in the agreement between the parties, arbitration may be the chosen method of dispute resolution. An arbitrator, appointed by mutual consent, will hear the case and provide a binding decision.

3. Consumer Court:

If the dispute involves consumer rights, approaching a consumer court is an option. Consumer courts are specialized forums that deal with disputes related to consumer protection.

4. Company Law Board or NCLT:

Matters related to the Companies Act may be brought before the National Company Law Tribunal (NCLT) or its appellate body, the National Company Law Appellate Tribunal (NCLAT).

5. Settlement Negotiations:

Before formal legal proceedings commence, parties may engage in settlement negotiations. This involves discussions and negotiations to reach a mutually agreeable resolution.

Documents Required for Drafting a Legal Notice to a Company

The strength of a legal notice often lies in the supporting documents that accompany it. Here’s a list of documents that may be required when drafting a legal notice to a company:

1. Contractual Agreements:

Copies of any relevant contractual agreements that form the basis of the dispute.

2. Correspondence Records:

Any communication records such as emails, letters, or other written communication related to the dispute.

3. Invoices and Financial Documents:

In cases involving financial disputes, include relevant invoices, financial statements, or other financial documents.

4. Photographic Evidence:

If applicable, photographic evidence that supports the claims made in the notice.

5. Legal Citations:

Copies of relevant legal citations or sections of laws under which the notice is issued.

6. Proof of Delivery:

If sending the notice by post or courier, maintain proof of delivery, such as an acknowledgement receipt.


Issuing a legal notice to a company is a strategic step in dispute resolution, demanding attention to legal intricacies. Companies must respond professionally, recognizing the potential escalation to legal proceedings. Supported by pertinent documents, a well-structured notice can set the tone for negotiations or, if necessary, formal legal actions. In the intricate landscape of corporate disputes, the legal notice plays a pivotal role in seeking resolution and justice.

Frequently Asked Questions on Legal Notice to Company

1. What prompts the issuance of a legal notice to a company?

Ans1. A legal notice may be issued due to a variety of reasons, including contractual breaches, non-compliance with legal obligations, negligence, or any action causing harm or loss to the sender.

2. Can an individual issue a legal notice to a company?

Ans2. Yes, individuals have the right to issue legal notices to companies. It is often the first step before initiating formal legal proceedings.

3. How should a company respond to a legal notice?

Ans3. A company should respond promptly to a legal notice, addressing the concerns raised in the notice. Seeking legal counsel is advisable to formulate an appropriate and legally sound response.

4. Are there specific legal sections applicable to notices to companies?

Ans4. Yes, legal sections such as CPC Section 80, Indian Contract Act – Section 73, Consumer Protection Act – Section 2(1)(o), Companies Act – Section 434, and Arbitration and Conciliation Act – Section 21 may be referenced based on the nature of the dispute.

5. What documents are needed when drafting a legal notice to a company?

Ans5. Documents required may include contracts, communication records, evidence of breaches, and any other relevant materials supporting the sender’s claims. The stronger the supporting documentation, the more robust the legal notice.

Demand justice with a well-crafted legal notice – Your guide to corporate dispute resolution.

Adv. Priyanka Sampathy

Adv. Priyanka Sampathy


5 | 163+ User Reviews

Priyanka Sampathy is a legal consultant who prioritises ethical and professional conduct while striving to achieve desired outcomes. With over 15 years of independent practice, she has significant expertise in handling legal cases. Her exceptional communication skills enable her to express arguments in a clear and persuasive manner, both in writing and verbally, in Hindi, English, and Telugu.

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