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rakesh (student)     07 July 2009

Cheque bounce by owner as refund of deposit.


My owner handed over me the chque after I handed over vacant posession. Now when I submitted the chque it was said - stop payment. When I contacted him, he said, that this was in due course of some bill that he alleged that I have mispaid when the housing society clearly told me to pay the bill. WHEN BOTH OF US AGREED that there was no dues and I handed over the key to his uncle ( 3rd party and took the cheque from him in due course) he said that he would settle the matter in due course( of which he is not even committing to a time frame), but is very arrogant, and has challenged me to take legal action( he created several problems from day 1) ( he abuses using bad words everytime even though I am elder to him). Can I do that? Also I am in Nagpur and he is in delhi. PLS PLS PLS HELP!!!!!!!!!! can I invoke the bounced cheque provision on him....or force him to make payment. Even when the current tenants, and housing society fellows spoke to him he said arrogantly- don't teach me I know what to do. In the end the whole thing was because of a bill of 1000 rs


 8 Replies


 you may send a legal demand notice for payment of cheque amount within 30 days from the date of cheque return from your bank. your case will stand in court if you have Agreement for Lease with the landloard

1 Like

adv. rajeev ( rajoo ) (practicing advocate)     08 July 2009

I agree with Naveen Joshi. If you have no agreement then to prove that u r in that house u can use letters which you have received and postal address given to anybody as an evidences. U can file a criminal case us 138 of NI ACt in Nagapur.

PARTHA P BORBORA (advocate)     08 July 2009

in my opinion you may send a notice demanding to pay the amount of cheque allowing the payee 15 days from the date of receipt of ur demand notice- but u must send the notice within 30 days from the date of receiving the information that the payee has instructed the bank to stoped payment. if the payee has not pay the amount demanded after laps of 15 days, u may file a case U/S 138 NI Act, as 'STOPE PAYMENT"  has the same status as " INSUFFICIENT FOUND"

1 Like

Dharmesh Manjeshwar (Advocate/Lawyer)     08 July 2009

If I do clearly understand, the cheque amount would be the refund of your security deposit amount. Yes, U can file criminal proceedings u/s - 138 of the N. I. Act against him but prior to that you have to issue him a notice demanding payment within 15 days from the date of receipt of the said notice.This is mandatory and U can issue him this notice within 30 days from the date of dishonour of the said cheque. If 30 days period have elapsed U will have to re-deposit the said cheque and act as abovesaid. Further I assume that U would have rented the premises in Delhi as the Owner is from Delhi - U will have to file the 138 case at Delhi since the transaction pertains to Delhi. Further U can put all the facts in the 138 complaint and it will be for the Owner to rebut the facts mentioned by you in the complaint.

Kiran (IT)     08 July 2009

Hello ,

  We had an booked an Villa at Alliance builder and took it back and he had given the chequeof Rs 5 Lakhs and it has got bounced . Could you please let me know the next steps.



Pankaj Rai (Lawyer)     08 July 2009

I do agree with Mr.Parthprotim.

1 Like


 If u have agreement with the builder and showing that this cheque was issued for refund of booking then u may send a legal demand notice within 30 days of cheque bounce and after the expiry period of 15 days of notice date you may file case u/s 138 of NI Act within 30 days in Magistrate Court where your jurisdaction fall

V.S.R.Deekshitulu (B.Sc, B.L)     09 July 2009

When ones a cheque is issued and it bouncced dishonoured, then the law course under NI Act is available. Let the landlord prove his case. Go ahead with notice from your place and file the case there if the notice is not honoured. Then he will come around for compromise since the travel cost will be higher than the amount due to you. then you dictate the terms and aske compensation for unnecessarily scoldoing you or scold him as you wish at the time of compromise. do not forget scolding even if he pays the whole amount. Wreck Vengence for scolding you


1 Like

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