Cancellation of a cheque isuued

sir, if you stop the cheque without informing the reason to the company in writting. then your cheque will get bounce and the Company may issue you legal notice and can file the Criminal Complainant U/sec.138 of Negotiable instrument Act in Court.  so please go through the Agreeement and sees whether there is any clause in the Agreement to that effect.

Regards,

Sudhir Parshe,

         Advocate

Sudhirparshe@gmail.com

9923602424

Promise to make some advance payment in lieu of some future service is not a debt or a legally enforceable liability.

You haven't taken any service but may take service in future ... but if you pay now in advance ...... you will get concession  ...won't you?..............

why? .............. because that money which that service provider uses it as 'capital' for free ...

Otherwise to raise such 'capital' from a bank that service provider has to take a lot of efforts..

Even airline companies say ......'if you book in advance you will get air ticket cheaper'.

But if you pay to that future air ticket let's 8 months from now, by a cheque .............. and even if airline deposits that cheque immediately and it gets bounced, .......................... then airline company doesn't go to court for bounced cheque!!!

So ensure that you don't make any intimation of 'request of service'.  

If you have already made any intimation, then first withdraw that intimation.

(let's say you made a req to a holiday resort scheme to be availed in dec-2011 in Goa!! then withdraw that request to them that you won't be able to make it in that period.

and also do a stop payment in bank.

once you do above, lastly then request them to cancel your scheme altogether!!)

Many companies raise such 'capital'.

Let's say ....

They float a schme and say ......."Pay 25k now ........... and live in our resort for a week for free (subject to availability) in dec-2011 (peak time) ...... which otherwise would cost you atleast 50k if you book in the last minute!!!"

If let's say 10000 people  apply. Then that Resort-company gets a liquid money, interest free, to use upto dec-11

10000 x 25k=25 crores !!

(In reality, actual statistics ................... actually lacs and lacs  of people in India apply!! ............... but all never get accomodated ...... nor all actually book such request also.... there is a condition of 'subject to availabiliy'!!

End result ..... almost 2000 people actually intimate the date!! ...out of which 1500 get the booking !!.... and in Jan-2012 ...................... 8500 people get their 25k back as refund !! 

In short, company uses 25k of those 8500 people's money for free!!!  ) TO raise such capital from bank, otherwise it may be difficult.

Same is the scenario for IPOs in stock market!!

Hence don't worry, go to bank and make a stop payment.  It will cost you probably 50 bucks in ICICI, I don't know about other banks.

In short, you shouln't be penalised if cheque gets bounced, if above conditions are met.

Can you please specify the agreement here.Nobody can give you perfect answer  unless you specify the content..If jamai ji above condition are met than you should't be penalised.

You have coe to know that services are poor.

You may study the agreeent signed by you.

Company for sure must have crafted the wording to suit them, even if unfair, and must have inserted some penalty clause.

Without seeing the agreement, it is believed that company might have mentioned some documentation,processing,administrative expenses as recoverable.

However after the cheque is relised company may take a stand that they have already paid the merchants for arrangments and may not supply the bills and advacnes paid by them, and this is a standarad tactics.

You may cancell the intimation and stop the cheque payment.

agree with jamai of law.