Legal Question in Banking Law in India

Hello Learned Consultants here

I had given a security deposit to the owner of the flat where my parents lived. Half of the security amount was given as cash and half as a cheque. But this cheque was not dated. It was kept as a security (signed but without any date) and never encashed, so that it could be encashed by the owner if we damaged his flat or something similar.

Now, my parents are leaving the flat but the owner says he has lost that cheque. But I think he is lying and may misuse the cheque later.

So, I requested my bank to stop the payment of that cheque, fearing he may misuse it in future after I vacate his flat. Can he take any legal action against me in case he tries to misuse this cheque and the cheque is dishonoured by bank due to Stop Cheque Request?

I have the details of the cheque documented on a notarized rent agreement. The rent agreement is notarized not registered.

The owner has the original copy of the notarized agreement and I only have its photocopy.

Please help.


Asked on 1/24/16, 10:18 am

2 Answers from Attorneys
Fca Prashant Chavan Expert Edge LLP

25.01.2016

Dear Sir / Madam,

The usual practice in an Agreement for Leave and License is that the Licensee(s) pays the entire Security Deposit to the Lessor(s) at the time of the Agreement which is refunded back to the Licensee(s) by the Lessor(s) net of deductions for any damages in the flat at the time of handing over the keys of the flat back to the Lessor(s). Since you have already stopped payment of the cheque, on account of it having been misplaced by the Lessor(s), unless any shortfall arises on account of recovery payable by you to the Lessor(s) at the time of vacating the premises, the Lessor(s) will not initiate legal action. Whilst paying the shortfall if any to the Owners at the time of vacating the premises, you should obtain it in writing from the Owner on the copy of your Agreement for Leave and License that there are no dues owed by you to the Owner.

Regards,

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Answered on 1/24/16, 11:04 am

1) First settle all ur dues to the owner and obtain no due endorsement thereon in full and final settlement. U can also get the fact of the cheque lost and ur stop payment recorded along with such endorsement.

2) If u left some unpaid dues to the lessor who after sometime says having the lost cheque was misplaced elsewhere no traced and ur stop payment attracts penal provisions u/s 138 of NI Act.

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Answered on 1/25/16, 1:56 am


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