Hemant (Law) 01 April 2011

Is he right?

Sir,

A reputed real estate company has not materialised the land deal and had been delaying un-necessarily after having received almost 60% of money from 2-3 of customers towards the cost. The remaining amount was supposed to be arranged by the company by bank loan. But the company dint do nothing about arranging bank loan as promised, inspite of submitting the documents as requested by the company. The company had itself volunteered to arrange the bank loan, but done nothing till 5 months after receiving 5-6 lakhs each from these 3 customers.

The customers after being fed up of the inordinate delay, chose to get back their money. Though initially reluctant, the real estate company agreed to give back the deposited amount in 3 post dated cheques to the customers without any interest for that 5 month period which it had kept with them. The customers had no other choice that getting his own money though. So after a great delay and number of phone calls to the real estate company, they gave 3 cheques post dated.

The cheques were presented at the mentioned dates on cheques, but the cheques were returned by bank with a message INSUFFICIENT FUNDS and 150/- deducted from the customers account. The same was intimated to the cheque issuing real estate company, He only said to re-present it again along with the second cheque after few days. This too was done as instructed, but the bank again returned the cheques with deducting 150/- and message of INSUFFICIENT FUNDS. This made the customer furious and had a verbal duel on a mobile phone. In return, the agent from the real estate company called up the customer after a few minutes and said since the customer had spoke some ugly words - his cheques will not be honoured and also told the customer not to present the cheques to bank and he is stopping payment. He also sent a sms to the customer instructing him not to present the cheque to the bank.

This has caused the customer a great deal of mental suffering by the behaviour of the reputed real estate company. What will happen to his money? How do he get it? Is the company right in stopping the payment of the cheques issued by themselves for such reasons. What is the legal remedy? Can he legally do that?

Will it be wrong if the customer still presents the cheque at the bank? Is the information on sms by the company to the customer enough to prevent the customer from presenting the cheqe at the bank?

What is the legal standing of customers in such nefarious cheating by real estate companies?

Please advice .........

Reply Follow

3 Replies

(Guest)

Dear Sir,hi.

1. How many days have passed since the cheque was 1st time presented in the bank by the customer?

2. Is there any proper agreement between the builder and the customers containing there by terms and

conditions in case of violation of the same by either side?

3. You can have multiple effective remedies if you answer the above questions. In case you need a lawyer,

then please email all details to: ravipk.2010@gmail.com

Kind regards,

Advocate Ravi

Hemant (Law) 01 April 2011

Thanks for the response Sri.Ravi Prakash

The cheques were issued on dates 20 march,25 march and 5th April 2011

First cheque was presented on 20th march and got bounced, next on 25 march, i presented the bounced cheque once again along with the 25 march cheque after confirming with the real estate company. But the 2 cheques(20 march +25 march) bounced. At this point, on intimating about the bounced cheques, i was told that to present again - so this time i presented once again (third time) the 20 march dated cheque and (second time) the 25 march dated cheque. But unfortunately, the both cheques bounced again. I was fined by bank 5 times for presenting those cheques. Now i have approached the issuing real estate company, they are saying that an income tax raid happened at their office and hence their accounts sealed. They are requesting me to give back those cheques and in exchange take fresh cheques from a different bank and A/c, which is not yet sealed by income tax officials. Should i take this offer?

Another issue is in a similar case, my collegue too along with me has gone through the same incidents. The only difference is - his cheque bounced first time but next day on repeat presenting the cheque, his cheque was encashed. Since he had referred me to the real estate company, he was furious about the behaviour of the real estate company towards repeated bounce of my cheques. My collegue called up the real estate company and this resulted in a verbal duel over phone. The company rep called up my collegue and said that his cheques will be stopped from payment and sent a sms too to him telling him not to present the 2nd cheque to bank. He has told him to meet his director(real estate) in this matter.

Summary is - me and my dear collegue are being troubled by this reputed real estate company. Neither did we get the promised site, nor the interest for the lakhs of money paid to the company. Here our own money is not being paid. They only giving cheques and they bounce repeatedly.

I am not aware of signing of any agreement with company. The company rep says, the rules of his company state that there will be a 15% deduction in paying back money to customers, if the customers cancel the deal. But we were compelled to cancel because nothing was happening towards registration even after 5 months or so. Even the promised bank loan volunteered by the company from a nationalised bank also dint bear fruit. Repeated calls to the company rep were never answered and they ignored us to high limits without bothering to answering our doubts. Hence we were compelled to cancel our land deals. Now the company is playing tricks with our money by not paying back promptly and issuing cheques that bounce. Please tell me remedy for me and my collegue.

Hope my explaination was clear. Please help.