Legal Question in Civil Litigation in India

We own a chemist shop as part of a hospital. We gave cheque worth Rs. 5 lakhs PDC to a supplier of medicines as advance payment for supplying a medical equipment for the hospital which is owned by one of our relatives. After 2 days, he stopped taking our calls and we complained to police and gave instructions to bank to stop cheque.

He presented the cheques on the cheque date and they were returned due to our stop payment. Now he filed case under Sec 138 in court and case is going on since 2005. He produced fake invoices to the tune of 5 lakhs and claims that the cheques were issued as advance payment for supply of these medicines.

Please advise us taking into account following points :

a) police was informed and cheque was stopped by us before date of cheque

b) bills produced by him do not carry any delivery acknowledgement from us as the medicines were never delivered. Also, each valid medicine bill needs to carry batch no. and expiry of medicines which is not there on the bill

c) date on bill is after the date of stop payment on the cheques

d) Bank manager is ready to give evidence that we had necessary arrangements to clear the amount

e) Hospital owner is ready to give evidence that indeed the advance was given for purchase of equipment

What are our chances of winning this case ?

thanks , G Vashistha


Asked on 11/19/09, 1:47 pm

1 Answer from Attorneys
SHIVA SHANKAR REDDY M/S S&S LAW FIRM

firstly your version of the facts of case show that indeed you have every chance of winning the case but of lately an observation showed that is there any agreement between you and the supplier and if so of what nature and if there is no agreeement then why wait till end of the case he filed for you file a cheating and defamation case agaisnt him in the court vide private complaint and see that he is punished

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Answered on 11/19/09, 11:29 pm


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