Dishonour of Cheque issued under MOU

Chetan Pichamuthu (Querist) 15 September 2010 This query is : Resolved
HI,
I entered into a MOU with a builder to develop a property which was 1st registered(sale agreement) & developed by us(Katha, etc). The builder issued 3 chq's in lieu of MOU(un-registered)for Rs.12 lacs and has issued a stop payment for the 2nd chq citing funds crunch.
I am the consenting witness to his agreement of sale....
Pls guide as to;
1) Remedy u/s 138 of N.I Act.
2) Civil case for injunction for breaching MOU(franked for Rs.200) will court fees/penalty act.
3) Criminal breach of trust...
And any other such provisions/remedies available under law.

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s.subramanian (Expert) 16 September 2010
1. You can proceed under 138 specifically pleading that the stop payment is due to insufficienc y of funds in the bank account.

2.Yes. You can do it. Seek injunction restraining alienation also.

3. Yes. you can do it.

R.Ranganathan (Expert) 16 September 2010
1) MOU and sale agreements are different. For what purpose this cheque was given to you is not known and not explained in your query. If it is only as security for completion of the project then it is not an enforceable legal debt as per 138 NI Act.
2) You can file an Injunction suit but in what way it will help you in stopping the development. Kindly elaborate why you want injunction.
3) This is a better option.
4)For any other remedies, you have to give a correct picture of the MOU and the sale agreement.