Stop cheque

nareshvasdani (Querist) 17 January 2015 This query is : Resolved
I was in talks with a flat owner to buy his flat. I paid him a token money of Rs 2,51,000/- by a cheque. Before the cheque was presented but after he deposited the cheque, I decided not to go for the said deal and stopped the said Cheque.

Requesting to suggest what could be legal consequencies for the same

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Anirudh (Expert) 17 January 2015
When did you issue the cheque?
Did you write to the owner of the flat of your decision not to go ahead with the proposal to buy the flat and also about your having issued instructions to bank 'stop payment' and requesting him to return the cheque to you? Have you written any Registered letter in this regard.
Have you entered into any agreement in writing, wherein the token payment made by you finds a mention?

Nadeem Qureshi (Expert) 17 January 2015
Dear Querist
is any agreement for purchase the flat executed or not?
if yes then is is mentioned that you are pay the cheque for this purpose?

send a legal notice to him with the intention that now you are not willing to accept the deal and willing to cancel the deal.
if he filed a case against you then if you proved before the court that this cheque was for that deal then no need to worry, this is not come under the Negotiable Instrument Act.

Rajendra K Goyal (Expert) 17 January 2015
Author reply the questions by the expert Anirudh.

nareshvasdani (Querist) 17 January 2015
The proposed flat is just one floor below where I am residing in a company's quarter. No formal agreement has been entered into, but yes on a piece of paper we agreed the total deal value of rs. 90 lacs and I issued a cheque amounting rs 2.5 lacs. Cheque was issued on 10th Jan 2015 and it wad deposited on 12th Jan 2015. When I met the party on 12th evening, he said that cheque has already been deposited and if I wish to cancel the deal then I have to forgo rs. 2.5 lacs. I had no other option but to stop the cheque through a phone banking request to my bank. The party is now threatened to go legal against me. Now I have given the detailed information, requesting to suggest what legal options are available with me

Anirudh (Expert) 17 January 2015
This is what happens when even persons like you who are educated do things without consulting anybody in advance.

In any case, Keep the piece of paper where you agreed for the total value. It is not clear whether it was in whose hand writing - whether it is in your hand writing or in the hand writing of the developer?
When any legal notice comes from him, at least this time, approach a lawyer, discuss things and then act.