Legal Question in Banking Law in India

I had taken order for supply of some material in DMRC through a civil contractor. The order value was about 28 lakhs. The civil contractor kept my 9.48 lakh amount as pending for about one year and deviated from his conditions given in his order.On extreme follow up the civil contractor agreed to make payment to me but laid a condition for reducing the rates. I agreed for the reduction in rate and reduced 1.75 lakh from total payment as i was in financial crices but on the agreement for reduction he took a letter from me in which i put a condition that this reduction is subjected to realization of cheques on dates as given , Civil contractor again defaulted on this and gave me 1 lakh against the bounced cheque as part payment. later i again deposited the cheque and it was passed by the bank on third time. now that contractor has made stop payment of the last cheque i had from him and has refused to make payment and is threating me . Please advice what i should do . I have to recover the amount of this cheque as well as i want recovery of all the amount that i had agreed to reduce to get immediate relief from my financial crises but to which he did not honor his commitment . Please advise .


Asked on 12/24/10, 9:25 pm

1 Answer from Attorneys
J. Radhakrishnan independent Practice

Apart from prosecuting the defaulter under Sec.138 of the Negotiable Instruments Act for the bounced cheques, if notice has been given within time as per the section and prosecution also launched within the time limited therein, file a suit for the amount due and also get attachment of his movable and immovable properties before judgment. Take the assistance of a good lawyer at your place.

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Answered on 12/24/10, 9:54 pm


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