Legal Question in Banking Law in India
Cheque stop payment
A party deposits cheque after verbal agreement via broker for purchase of property. Then the cheque gets stopped. What is outcome of this?
5 Answers from Attorneys
Re: Cheque stop payment
The transaction may be cancelled. However, you may not be able to recover the cheque amount. If you have received any amount in cash, you may be entitled to forefeit depending upon the agreement.
This is very common in property transactions when the market is facing a slow down.
Re: Cheque stop payment
Transaction stands cancelled.
Re: Cheque stop payment
You may annul the agreement forfeiting the amount which you have received in cash.
Re: Cheque stop payment
The person in whose favour the cheque is issued is likely to proceed under Sec.138 N.I.Act and in case it goes to the level of prosecution , you will have to defend the same by proving that the cheque was not given in discharge of debt. Your questions should be more specific.
Re: Cheque stop payment
already replied.
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