Cheque returned due to stop payment
Kishan Karunakaran
(Querist) 02 May 2013
This query is : Resolved
Dear Experts,
I had issued a cheque to a party for supply of raw material. However, the party did not supply the material and presented the cheque for payment. Since I had not received the material, I mentioned the same and issued stop payment at the bank. I did not make payment to this party when he sent me a notice to make payment within 15 days. Am I liable to be punished or can I contest my case.
Raj Kumar Makkad
(Expert) 02 May 2013
You can definitely contest the case but it would have been better for you had you replied the notice containing the facts which you mentioned in the query.
Kishan Karunakaran
(Querist) 03 May 2013
Dear Sir,
What are the documents that I have to arrange to establish that there was no legally enforceeable debt or liability.
Raj Kumar Makkad
(Expert) 03 May 2013
You have to rebut the claim of the complainant. You might have mails, correspondence regarding the order and then refusal to supply. All those documents are esential.
Anirudh
(Expert) 03 May 2013
The crucial question to be answered by you is whether you replied to the legal notice received by you or not? If not why not?
If you had replied to the notice, did you take the plea that you did not receive the material from the supplier?
DEFENSE ADVOCATE.-firmaction@g
(Expert) 03 May 2013
There may be some more facts which you do not want to disclose since no body kicks a dead dog.
Still it is civil liability and cheque law had been made criminal law and is one sided so accused must defend but with most extra ordinary care.
Negative evidence is never desirable, you should wait for all the documents with the complaint in the court where it will be the duty of the complainant to prove legal liability beyond reasonable doubt.
ajay sethi
(Expert) 03 May 2013
the complainant has to establish that cheque was issued in discharge of debt due and payable . the complainant will have to prove that he dispatched the goods and you have received the same
V R SHROFF
(Expert) 05 May 2013
Once you informed the reason of stop payment, for no delivery, it is no more 138 case and becomes Civil matter.u r not liable
Guest
(Expert) 05 May 2013
Dear Karunakaran,
The information of mere mention in stop payment notice about non-supply of material is not sufficient for appropriate advice. It denotes one-sided action only.
Relevance of stop payment is subject to several other factors to win a case.
