Legal Question in Banking Law in India

Cheque bounce

I have given full contract of my house construction to one guy.I have given all the payment on time.My house is in the midway of construction.Last 41/2 months back he had taken 2.25 lakhs advance from me and also he took 1 lakh from his brother who is running finace(lawyer also) for which he told me to give the checque.I have signed the checque and written the ammount but not written payees name.My constructor had collected the money from his brother on behalf of me and after that he had vanished from last 41/2 month he had stopped my construction as well as he is not responding to my phone call. Some three month back eventough my constructor did n'y turned up I gave 70,000 to his brother. But yesterday,his brother put the cheque for collection which is bounced back due to insuffient fund.Due to my construction stopage evey month I am in loose of 20000.I have n't taken any agreement from the constructor and for the check which i have given to his brother I have not signed any agreement. Can you please tell me what will be the complication involved in this regards .How can I come out of this problem


Asked on 12/14/05, 2:25 am

3 Answers from Attorneys
Mahesh T. Pai M. A. T. Pai & Mahesh T. Pai

Re: Cheque bounce

Dear Friend,

It is really unfortunate that you have been taken for this ride by your contractor and his brother.

You should remember that they will have a different story to tell, and you should be prepared for that.

Going purely by what you say, it is very wrong of the contractor's brother to present the cheque when you have repaid him Rs. 70,000/-. Again, you have paid it in cash, and I presume that you have not obtained any receipt.

I suspect that both of them - the contractor and his brother have colluded and taken you for a ride. However the evidence is clearly against you.

Since this matter will require some efforts at marshalling (that is, identifying) evidence, and proof, it will be a good idea to meet a lawyer in your locality and take advise from him.

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Answered on 12/14/05, 2:45 am
Rays John Koshy Laws Inn

Re: Cheque bounce

Dear Mahesh

You should have taken care of two things 1) There should have been a

contact between you and the constructor. 2) Name of the Payee should have

been mentioned.

As there is no contract between you and the constructor it will be

difficult for you to move the court of law. Still there is an option of

preferring a complaint before the local police where he resides and explain

the matter to the police. Along with that prefer a copy to the higher Police

officials (The city commissioner or the Superindendent of the District as it

applies) and get the constructor hooked. In the petition you have to mention

about the cheque as well. It should be done immediately before the case

under S.138 is preffered by the lawyer. (brother) If the police is not

taking any action then you may file, based on that ground as well, a

complaint to the local criminal court and pray for a direction to the

concerned police station under S.156(3) of the C. P.C

Consult a local lawyer toknow the local way of handling it.

Rays John Koshy.

Advocate.

[email protected]

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Answered on 12/14/05, 3:35 am
nagendra naik Naik&Co,

Re: Cheque bounce

It is a case of no evidence. still you can lodge a complaint of cheating to the local police. that will be a defence to you in Cheque bounce case. but the complaint should be filed immidiately. it is advisable to contact an Advocate.

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Answered on 12/15/05, 11:13 am


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