Blank name/ date cheque is valid for sec 138 ??
sachin petkar
(Querist) 22 August 2019
This query is : Resolved
I sold my under construction flat in. 2015 to client for 12 lacs at half of the property value due to emergency. He given amount in full cash. Only Notary agreement was made. Later some delay he demanded to cancel his flat ask me to return his amount on market value in March 2019. And now the market value is 30 lacs.
I have no money to refund then i had given 5 lacs and 5 blank name/ date cheques of 5 lacs each.
But without any agreement or given in written regarding cancellation and purpose of cheques.
Now some more delay he his threatening and harrassing me severely that he will deposit all cheques and filled case against me and will do FIR.
EXCEPT of Flat sale agreement he not have any payment record. He had given me in full cash payment.
And as per cheque. I have not written name and date and not have any agreement or notes while delivery of cheques. And client not have any purpose reason of cheque.
So what can i do now. Can i stop the cheque declaring reason of cheques lost or given cheques for any other reason.
Can i report to police station before he filled FIR against me.
I want to give his amount but require some more time.
Please suggest what to do. And let me know what he can do to me. As he given me full cash payment which is illegal and black money.
Please advice.
Dr J C Vashista
(Expert) 22 August 2019
Complaint u/s 138 of the NI Act, 1881 is maintainable when you have signed the cheque(s) even if you did not endorse name and date in the subject cheque.
It would be advisable to consult a local prudent lawyer with relevant records for better appreciation of facts/documents, guidance and proceeding.
Adv. Vaishali Harish Gore
(Expert) 22 August 2019
Signing cheque by you is maintainable in compliant u/s 138 of Negotiable instrument act, you can put mail on his name and asked him not to deposit the cheques for a particular period. but you have to refund liable amount to him.
sachin petkar
(Querist) 22 August 2019
But there are no reason and purpose of cheques given in written.
krishna mohan
(Expert) 22 August 2019
When you admit the liability to pay and having given a signed cheque, for any default NI Act will apply. Better discuss and resolve the issue amicably.
rajeev sharma
(Expert) 22 August 2019
The unnotarized agreement though may not be enforced for obtaining orders from to force you to sell the house to that person but if it contains the details of payment made by that person to you it may be read as a proof of payment of sale price and other conditions agreed between you and that person. So you will not be able to deny your liability. All other method of avoiding the liability are quite feeble and will not stand in the court . So please make an amicable settlement. One thing is sure he court will not ask you to refund the amount at the present market rate of the flat. At the most you are liable to refund the amount you received and the interest if any decided by bank.
P. Venu
(Expert) 27 August 2019
Provisions of NI 138 could be initiated only if the cheque had been given against an enforceable debt.
However, the facts posted suggest that your hands are not clean. Who is possession/occupation of the flat?
