Legal Question in Banking Law in India

Cheque bouncing due to stop payment request

Hell Sir,

I had given a cheque of Rs 25,000(twenty five

thousand) to a builder of a property for the booking

of a flat. At the time of booking he was supposed to

provide me with all the documents related to the flat,

I was supposed to buy, for verification purpose. When I

approached one of my freind who has bought flats

before, had some apprahensions about the said flat and

asked for few more documents. When I repeatedly asked

my builder he ignored it for a weeks time.

I have asked my bank to stop the payment on this

cheque. If the builder deposits the cheque and it

bounces,shall I be responsible/liable for it?

I have written email and spoken over the phone with

the builder and have said to cancel the booking of

flat. He had not informed me in any manner that the booking amount is not refundable. When I say email and phone it seems to be handled by subordinates of the builders. If the builder says that he has not received information on cancelling of flat, what do I do?

What should I do next?

Should I ask my bank to resume the payment on the

cheque? If so, if he deposits, how will I recover

money from him?

Please provide me some useful thoughts on this issue.

Thanks & Regards

--name removed--


Asked on 6/14/06, 7:52 pm

3 Answers from Attorneys
BANKIMCHANDRA SHAH ADVOCATE DIGVIJAYA CONSULTANCY SERVICES

Re: Cheque bouncing due to stop payment request

You send a notice to the builder and inform him that you are not interested in booking the flat and that the builder should release the cheque given to him as a booking amount by cheque.

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Answered on 6/15/06, 10:29 pm
Vivek Anand M/S.VIVEK ASSOCIATES

Re: Cheque bouncing due to stop payment request

In order to hold you liable under the NI ACt, you have to issue the cheque in discharge of a legal debt or liability. In the instant issue, their is no legal debt or liablity to the builder, and the cheque is issued for performance of a contract, which is not performed by the builder, and hence if you are in a position to prove this fact, with supporting documents, then you are legally entitled to stop the payment of the cheque.

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Answered on 6/15/06, 2:01 am
Vivek Mapara Mapara Law Firm

Re: Cheque bouncing due to stop payment request

Sir,

It is required to be known, whether any agreement or contract has been executed by you with builder or not in order to ascertain the terms and conditions of booking.

In normal cases a builder is required to supply all document under his custody to the buyer in order to ascertain them about the flawlessness of title. Hence if he is not supplying you with all title papers, you are at liberty to cancel your booking. It is advised that you send a registered post letter to the office of builder and ask him to supply the requird title papers or otherwise u will cancel the booking. Mean while u can make stop payment of cheque.

A cheque is isseud for a lawfull consideration only, and if there arise no libability for payment of consideration then bouncing of cheque is not an offence. But it is requried to be proved in court.

For any further imformation you may feel free to contact us.

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Answered on 6/15/06, 2:52 pm


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