Legal Question in Banking Law in India

We buy raw material with certain quality norms by paying post dated cheques .Question is ...If the rawmaterial is not meeting the required std while inspection in our premises ...shall we issue stop payment cheque on quality grounds ?? what is consequences ?

Asked on 6/01/11, 2:33 am

4 Answers from Attorneys

Arent Lievens Advocates Lievens & Lievens

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A postdated cheque is falsely dated cheque. But I understand the practice in commercial transactions.

In your case it is difficult to stop payment, because from the false date it seems you accepted the goods.

It might be a good idea to make up a small contract with your seller whereby you state that

- the goods are accepted under condition of quality control

- payment is made by a post dated cheque

- that the buyer is allowed to stop the cheque if the quality is not as agreed

This way you are better covered.

Answered on 6/01/11, 2:45 am

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RAJIV GUPTA (Cell: +91 9811284735) [email protected]

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in case you have already issued the cheque, you cannot stop the payment as it attracts the liability under negotiable instrument act. better return the raw material and file a suit for recovery.

Answered on 6/01/11, 3:20 am

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Professor SOMNATH MUKHERJEE MUKHERJEE ASSOCIATES(Cell +91 9874753359/ 9477781578)

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IF YOU STOP PAYMENT THEN YOU CAN FACE PROCEEDINGS UNDER 138NI ACT.IF YOU FILE RECOVERY PROCEED INGS THEN IT WILL TAKE LONG TIME TO GET THAT MONEY. IT IS BETTER FOR YOU TO GO CONSUMER FORUM. FOR DETAILS CONTACT 09874753359

Answered on 6/01/11, 6:15 am

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