Upgrad LLM

deal fail, how to stop cheque payment??

project manager

hi all, i was searching a home in delhi. at last i finalized one flat worth 70 lakhs, i gave cheque of 1 lakh as token amount to the owner, he gave me reciept on simple paper, without any revenue stamp/legal stamp. no agreement was signed. biana agreement of 20 lacs would be finalized next week. but today i came to know something fishy in that deal,it is resale flat. now i dont want to purchase that flat. what should i do to stop payment of cheque of 1 lakhs, which i gave him as token amount. as i dont want to purchase that flat. i informed him also that i dnt want to purchase that flat. but he already presented cheque in bank. here, i applied for stop cheque payment in my bank. CAN SOME LEGAL ACTION BE TAKEN AGAINST ME, AS I STOPPED PAYMENT OF MY CHEQUE? HERE 1 LAKH WAS ONLY TOKEN AMOUNT,JUST TO BOOK THAT FLAT. NO LEGAL AGREEMENT WAS DONE. WHAT IS THE BETTER WAY?

BE/ LLM in Corporate Laws

No legal action can be taken against you as there is no contract as yet. A simple receipt of having accepted a token money cannot be construed as a contract. It simply means an inclination on your part to enter into a deal with the the seller. The seller has not fulfilled any obligation towards you sop you are not not bound to pay him.

Having said that, but if a considerable time has elapsed, then he may sue you for damages that he has lost a client because of your commitment to him.

Your best course of action lies in stopping the cheque payment, then get the matter resolved amicably by paying him some damages,if he is adamant.


Your case has to be seen in two angles. Criminal proceedings for bouncing of cheque and secondly, will it attract any civil liability to pay damages.

Firstly, you write a letter to the seller informing him that you are not interested to purchase the flat, as such, you advised your banker to stop payment.  Mere bouncing of cheque itself is not an offence.  There is no legally enforciable debt which is payable to the seller as you are withdrawing to proceed with the deal.

Secondly, basing on mere payment of token amount without execution of agreement of sale, awarding of damages is difficult.  But, without lapse of time you shall inform the seller that you are not interested to purchase the flat showing the reasons in clear and acceptable manner.


Hi Tanmay,

Both sanjay and sri ramulu are right.  You have to take two specific action No.1 : inform the vendor about your intention and ask him not to present the cheque  and No.2 :  instruct the bank to stop payment.  If the vendor presented and got the cheque bounced, he must have incurrend some charges.  Hence, better settle with him amicably.

shri raam shekher

Advocate/ nadeemqureshi1@gmail.com

Dear Tanmay

you can stop the payment and send a notice to another party and inform him to canceal the deal due to this reason. after that he can not file any criminal case against you before the court .

feel free to call




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