Stop payment with valid reason
Vinod prajapat
(Querist) 14 October 2015
This query is : Resolved
I purchased second hand medical instruments with contract and installments from a party but within somedays machines start malfunctioning and first party denied for any assistance along with first party has no information about original buyer. I have mailed 3-4 letter for help but they didn't respond. Finally i stopped the payment with iinformation and my ac had sufficient fund that time. Am i liable for 138 act?
Anirudh
(Expert) 14 October 2015
You issued the cheaue to discharge your liability towards purchase of the machinery.
You cannot deny this.
That payment has been stopped - for whatsoever reason.
If the machinery was malfunctioning then you should take separate action - but cannot stop the payment. In any case, if the machines were defective or malfunctioning, you ought to have returned the machinery, which obviously you did not do.
If you have purchased the machinery second hand, why should anybody provide you the information about the first purchaser. In any case, if you were so particular, you ought to have sought and got the information in the beginning before purchasing the machine.
Having issued the cheque in discharge of liability, you have to face the case. Of course, you can give your explanation/ reply and try to convince the court. IF the court gets convinced about your explanation - well and good. Otherwise you have a long drawn battle in your hands.
Rajendra K Goyal
(Expert) 15 October 2015
You should have issued registered AD notice regarding the malfunctioning of the machine and instruct the seller not to present the cheques for payment.
Cheques issued should be honored in general.
SAINATH DEVALLA
(Expert) 15 October 2015
The above experts are right with their views.
K.S.Srinivas
(Expert) 17 October 2015
Yes. The drawee has the full right to initiate proceedings against you u/s.138 of N.I. Act.
T. Kalaiselvan, Advocate
(Expert) 18 October 2015
You may first answer the queries raised by experts to get proper opinion to your query.
