Leave license - cheque bounce

the agreement remains in force. you can file a case u/s 138 NI act against the licencee 

The licensee has given me another cheque. But as the cheque no. mentioned in agreement has bounced, validity of the agreement is my concern. 

If you have got advance money by another cheque than cheque no mentioned in agreement does not make any effect on validity of agreement. 

Despite the fact another cheque has been issued to you, the agreement is bad in law as the leave and licence agreement was registered pending clearance of the cheque amount. If you have let out the premises and the same is in possession of the tenant/licencee, you can issue legal notice of eviction on the grounds enunciated in the same and thereafter file a case for eviction and possession before court. Proceeding for N I Act wont serve the purpose as the tenants will continue staying in the premises with the same being in their possession.

I am confused by the contrdictory statements made by others and Yougesh V. Nayyar.

The law  is always in favour of reasonable solutions and so once the money is accepted by another cheque the matter is closed the agreement is valid and the tenency is legal.

I differ from the opinion of my brothers. Law is very clear on this aspect. Nothing which has not taken place or an act which is only promised and not performed does not give right to opposite party. Acceptance of 2nd cheque does not validate the agreement unless the same is not honored. Issuance of 2nd cheque as well does not validate and legalize the malafide intention of the licencee of issuing the cheque which was dishonored.

An act 1st done unless is not recuperated by the honoring of 2nd cheque issued by the licensee would not amount to legalize and validate the agreement.

Mr. Vinod,

Question still remains where it was. Whether the cheque which was issued to you later on is honored or not is important. Your query and reply on this aspect is silent. While posting any query put forward all the bare facts so as to enable us to give a firm guideline.

Eviction proceedings can be initiated when terms and conditions of  agreement is violated.Though it is not clear from your query that what terms and conditions were agreed for complying with agreement yet  bouning of security cheque does not give right to evict tenant nor it is a ground for eviction particularly  when amount  of security has been paid by  another cheqque. 

If second cheque is clear, Execute on Rs. 10/- stamp paper that bounced chq was replaced and amt paid, no dispute now. 

Honble Supreme court as late as on 27 th November 2012 in a cheque bounce case has given following opinion-

such a dishonour in order to qualify for prosecution under Section 138 shall have to be preceded by a statutory notice where the drawer is called upon and has the opportunity to arrange the payment of the amount covered by the cheque. It is only when the drawer despite receipt of such a notice and despite the opportunity to make the payment within the time stipulated under the statute does not pay the amount that the dishonour would be considered a dishonour constituting an offence, hence punishable.

So even prior to issue of notice the amount has been paid for the bounced cheque the matter ends.

It is very clear from the statement our different jurists 

but in all you have to take care before depositing the second cheuqe if the process starts again in the same way as 1st cheque so be fast and enquire and deposit the cheque