Stop cheque payment
Abdul
(Querist) 03 June 2017
This query is : Resolved
I had purchased a house from a seller and the registration formalities done on 4/3/17. Since the seller agreed to do some remaining finishing works , I issued a post dated cheque for 20/3/17 for an amount of 2.5 Lakhs.( unfortunately it was not documented). Since the seller did not initiate any work after repeated call, I had no way , but to stop cheque payment knowing its consequences.
I got a notice from the seller's advocate on 18/5/17 to pay within 15 days, else appropriate legal action will be taken. In that notice it's mentioned that the cheque was presented on 23/3/17 and the bank issued a memo on 25/3/17 mentioning as payment stopped .
My query is : will it attract 138 NI (Criminal case) now since the notice was served to me after 30 days of bank's memo issued to them. Cheque has validity till 19/6/17. Also the seller is out of country.
Please let me know what to do? I am a Government servant (Gazetted officer) and like to avoid criminal proceedings.
Mean while the seller's advocate called me for a compromise for an amount of Rs. 50,000/- only which I cannot accept.
P. Venu
(Expert) 04 June 2017
Furnish reply to the Notice setting out the facts and asserting that there is no lawful debt; the cheque was issued in anticipation of certain items of work being executed and as the contractor has neglected to carry out the work, the stop memo had been issued.
Rajendra K Goyal
(Expert) 04 June 2017
Reply the notice.
Try to have amicable settlement.
krishna mohan
(Expert) 05 June 2017
I agree with the views of Mr.Venu. You can respond/claim through a legal expert that it is an advance payment demanded by them for commencement of work by ... date. Since they failed and even after repeated reminders either to carry the work or present after commencement of work. Since they failed, no breach and shall not be covered u/s 138 NI. But in reality amicable settlement is suggested to have a win win situation.
