Legal Question in Banking Law in India

Re: Stop payment of cheque

He may consider two - fold defence;

(1) File a case in consumer court against the interior designer claiming damages;

(2) File defence in the case u/s 138 pleading that he was not liable to make the payment because the work was not done as per contract.

A local counsel may better help to pursue these cases in court.

Re: Stop payment of cheque

Section 138 of the Negotiable instruments act is regarding dishonour of cheque for insufficiency of funds. Therefore if at the time when the cheque had come for clearing there were sufficient funds in your friends account to honour the cheque, then your friend may not be liable for the offence under Section 138, even if the cheque was returned on stop payment instructions given by your friend. However if there was no sufficient funds, then proceedings under 138 could be taken against your friend eventhough the cheque was returned due to the stop payment instructions given by your friend. In the case you could take a defence that as per the contract with the architect, there would be no liablity for payment of the amount for the work done if your friend is not satisfied with the work. However since satisfaction is a matter which differs from person to person, how far such a defence woudl be accepted would have to be seen.You may advise your client to approach a good criminal lawyer for defending your case who would be able to give necessary suitable advise after going through all the relevant contracts, papers etc.

Re: Stop payment of cheque

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