Legal Question in Construction Law in India

Dear Sir,

I had a construction agreement with one of my relative (contractor). I have received final construction invoice through e-mail and I settled the same by a cheque.

He has submitted another invoice stating that he has done additional job worth Rs.2.54 lakhs. I refused to pay that amount as he never communicated me about this additional work and there is no agreement between me and the contractor for this additional work.

However, I have given him a cheque for Rs.1,66,750/= as gift, which he endorsed as settlement for additional work on the handing over documents.

Subsequently, I requested him to return this cheque and I informed him that I will pay him this money in two installments in two cheques. But the contractor has refused to return the cheque and submitted the same in bank which is returned by the bank due to insufficient of funds.

Now the contractor is threatening me that he will file a �criminal case against me for committing criminal breach of trust�.

Could you please advise me my status on this issue and how I can respond to him.

Thanks & regards,

David Ponraj


Asked on 9/15/10, 8:16 am

1 Answer from Attorneys

Vishwa Arya Arya & Co.

you will have to show that this amount of 166750 was gift. But since the contractor endorsed it as the settlement amount which you did not rebut as gift therefore he has an edge over you. it will be difficult for you to prove it. when you receive the summons in the case go and pay the amount in two instalments in court. the court will accept without any additional charges.

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Answered on 9/18/10, 10:54 am


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