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Deepak (Business Analyst)     13 February 2014

Cheque dishonour


I entered into a contract with a property dealer firm to buy a land. 

Per contract

I paid some 3 Lacs in advance and 2.7 L in 30 interest free EMI. 

Per contract if I do not want to purchased land, I can anytime ask for cancelation of contract and and the dealer would pay me 18 pct interest on all my money paid. he would take one month to refund me, and wont pay interest for that one month. 

I asked for termination of contract after paying EMI for 28 or 29 month.

I received 3 cheques from him 2 for principal amount and 3rd for interest (nearly 2 L of interest).

The 3rd cheque is dishonoured by him. 

I talked to him, he says market is not doing good, money is hard to come by hence I am unable to pay. He may be ready to issue another  3-4 month PDC in lieu of dishonuored. 

I get to know I can file a complaaint in Sec 138 of Negotiable Instrument Act and us 420 of IPC.

How good my position is if I take a legal action against him?


 4 Replies

sahil (deputy associate)     13 February 2014


If you have deposited the cheque and the cheque is dishonoured you can definately file a complaint against the other party under section 138 - NI.

It shouldnt be a problem to file the same. I would suggest if he denies then go with the process. 

Or else try to sort out mutually by taking other considerations along with the interest if any.



Adv Sahil Vora

Deepak (Business Analyst)     13 February 2014

He is ready to give another 3-4 month PDC (without interest), If I take that cheque, tand the new cheque gets dis-honoured, will I be able to take legal action against him for the dis-honor of new cheque? 

sahil (deputy associate)     13 February 2014

YES till the time you hold the cheque you are liable. 

Please keep all the proof of transaction & if you sure that after two three months the cheques are going to dishonoured its good to take legal action for now.

Its an offence.


Adv Sahil Vora


HARSH GUPTA (ADVOCATE)     18 February 2014

U/s 138 of NI Act, you should send a legal notice of demand the debt with in 30 days from the receiving the intimation of the dishonor of the cheque.


Harsh Gupta, Advocate

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