Legal Question in Banking Law in India

Cheque bouncing due to stop payment

Respective Sir,

I had given a cheque of 4Lacs to a lady (owner) to buy a house. At the time of writing advance payment agreement, I had told her that rest of amount will be paid through DHFL loan; after hearing this she did not give us advance payment receipt (she replied its ok; but did not give us advance payment receipt. She replied us that you can trust me; unfortunately we trusted her).

Now she is not giving us advance payment receipt and copy of property registration; that are mandatory to apply a loan in DHFL. We're requesting her either give us these documents or return our cheque and one lakh rupee (we had also given one lakh in cash). She is not accepting anything; and threatening us "I'm not going to give you anything and you have to pay rest of 4Lakhs also; otherwise, I will file a cheque dishonor case on you.

At this condition, we�re totally confused that what should we do? After searching on internet I reached here; where I think that I can get a proper guidance. Kindly tell me what should we do now?

Proofs that I have to prove my side;

I have one lakh rupees advance payment receipt signed by landlord and two witnesses( plain copy paper used)

I also have some video recordings; while we were requesting her to return our money or give us documents. (I had used a spy cam android application to record video; I doubted her; that�s why I�d recorded video clips)

What I want?

I just want to cancel my cheque payment; therefore, please guide me how to legally cancel a cheque? (in such scenarios)

I also want my one lakh rupees back; if possible with the help of proofs that I have.

Please guide me to tackle this condition.

Thanks & Regards


Asked on 3/20/16, 7:01 am

1 Answer from Attorneys
Fca Prashant Chavan Expert Edge LLP

20.03.2016

Dear Sir / Madam,

I get an impression that you have negotiated purchase of a tenanted premises since there is involvement of the landlord therein. The facts of the matter based on the Advance Payment Agreement, if in writing, would have to be reasoned out to ascertain deviations or violations by any or both parties of conditions agreed to and mentioned in the Agreement. If the Owner has solely failed to comply and fufill her obligations in the deal, you may stop payment of the cheque by writing a letter to this effect to your Bank, citing the cheque particulars and valid reason(s) thereof for stopping the payment, and issue a copy of this letter to the defaulting Owner and the Landlord.

If the Owner fails to return back the token money of Rs. 1 Lakh paid in cash to her in the presence of the Landlord and two witnesses, lodging a Police complaint for cheating (Section 420 of the Indian Penal Code) against the defaulting Owner is advisable and recommended.

Regards,

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Answered on 3/20/16, 9:51 am


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