Swar (Private Job) 15 March 2023

Builder provided advance return in cheques for cancelled deal but not enough money in his account

Hi all,

In a cancelled sale deal (from the builder side), I have obtained some cheques (in lakhs for a commercial property) to return my advance money from that builder, after so much effort last month.

But the issue is that he is not keeping/depositing enough money in his current bank account (of cheque) to encash it, even after requesting and waiting too much. Should I bounce cheques !

As I am in private job and from middle class family, I am keeping my conversations healthy and recorded and I want to recover my money soon without unnecessary headaches.

Looking for positive legal advice.

Thanks in advance!

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5 Replies

Pankaj (Student) 15 March 2023

You can give him notice under sec 138 of NI Act to give you the money. If he doesn't within a month, you can file a case in civil court.

Sidhhi 15 March 2023

You need to file FIR by lodging complaint with police and also civil suit for recovery of amount with interest.

Dr J C Vashista (Advocate) 16 March 2023

Did you raise written demand notice for the money advanced / agreed and paid ?

Advocate Bhartesh goyal (advocate) 16 March 2023

It is not possible for you to recover payment of advance money from builder without adopting legal recourse so contact to local lawyer for needful action.

P RaviShankar-cell-8939332195 (Advocate ) 17 March 2023

You can present the cheques with your banker. If the cheques bounces, get the cheque dishonour memo from your bank and issue a legal notice to the builder within 15 days from the date you received the dishonour memo. If the builder does not pay you the money within 30 days of receipt of the legal notice, file a case in the magistrate court under section 138 of Negotiable Instruments Act. On the other hand you can also file a summary suit in the civil court