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138 & 142 applicability

(Querist) 14 July 2010 This query is : Resolved 
Dear All,

I have booked a flat from a builder through their authorised dealer in April 2010 and issued a post dated cheque (say for 10th August 2010) against booking amount since the construction of flats was not started at site. The authorised dealer assured me through mail (under copy to builder) that the construction would be started before 1st August 2010 and if not then I will be entitled to cancel my booking.

Now despite their commitments, the builder is not starting the construction and from the date of booking they are saying that it will be started in next 10-15 days, it seems that they are not willing to start the Construction in near future since nearly 3 months have been passed.

Now I want to cancel my booking. Can I write to the builder and his dealer for cancellation of booking and return the post dated cheque to me since they have failed to start the construction work. In that event, if the builder still presents the said post dated cheque and it will get dishonoured, am I liable for punishment u/s 138.

Pls advise
Devajyoti Barman (Expert) 14 July 2010
Yes to avoid that eventuality you should immediately after sending the notice for cancellation file a complaint before the Consumer Forum against the deficiency in service and claim for damages as well as return of the earnest money.
Adv Archana Deshmukh (Expert) 14 July 2010
Give a legal notice intimating cancellation and mentioning in it, not to deposit any cheque for encashment and return the cheques and earnest money. If the builder and dealer fails to comply then, as suggested by Devajyoti Burman, you can file a complaint in the consumer forum.
DEFENSE ADVOCATE.-firmaction@g (Expert) 15 July 2010
No problem for NI 138 but what about your other obligations and rights with the builder.
Basavaraj (Expert) 17 July 2010
Better late thane summariley go and file a case before the consumer fourm. Do not send any notice if you desire to file consumer case, beacuse we would prpeare a gorunds to defend.
Basavaraj (Expert) 17 July 2010
Soory it is by oversight mentioned that "we would" rathar than "He would". Opposite party would prperare grounds to defend himself.
sushil bhatt (Querist) 17 July 2010
Actually, at this stage I only want to send a letter stating that since they have failed to start the construction at site, I want to cancel my booking so do'nt present my cheque in bank and return the same to me.

In that event, if they still present my cheque and it gets dishonoured, will I be liable u/s 138 or not?


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