Legal Question in Banking Law in India

I issued a cheque of amount more than my authorized limit to our contractor. The cheque was dishounered and we paid the cheque amount next by RTGS to our contrctor and asked him (over phone) to return the un cleared cheque to us but he told that he has destroyed the cheque. Hence we have given stop payment instruction to bank for that cheque. After four months our contractor again presented the same cheque to bank and again it was dishounered for stop payment. Now he is blackmailing us to pay the cheque amount which we already paid to them. He sent a notice to us to pay the amount otherwise they will file case under sec 138. Please advise what to do

Asked on 6/02/11, 2:53 am

5 Answers from Attorneys

Vishwa Arya Arya & Co.

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you need not succumb to the pressure. You will need to contest the case. You must send a reply to the notice stating that the payment towards the cheque has already been made. Send them a notice that in case they choose to file a case on the cheque, you will prosecute them for perjury.

Answered on 6/02/11, 3:05 am

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Jyotishwar Bhosale Advocate, Bombay High Court

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Hi,

As rightly stated by my colleague, you need not take pressure, but need to take immediate action through an Advocate you can send a reply to his notice. For further query you can reach me on my e-mail or phone.

Answered on 6/02/11, 3:30 am

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

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in the reply to his notice, you may mention that the cheque amount has already been paid in advance and he is not entitled for any more. you may also forewarn him that you may initiate criminal proceedings of break of trust and fraud against him in case he proceeds with the complaint under negotiable instruments act and does not return the cheque.

Answered on 6/02/11, 4:44 am

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J. Radhakrishnan independent Practice

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Engage a good advocate of standing and give proper replies to the notice and later defend the action if taken to court.

Answered on 6/02/11, 5:43 am

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