Sheel (home maker) 17 April 2012

Stop payment of a cheque for security

We entered into a sale agreement for a vacant site for 1 lakh rupees. after further investigation, we found that owner has dues to bank etc. so we issued a stop payment of the cheque issued to him until we sort the matters further with him. we had enough funds at the time of issuing the cheque. can the person cause trouble with that cheque?. we have informed him about the stop payment ahead of time.thanks for the help.

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3 Replies

Kumar Doab (FIN) 17 April 2012

It shall be appropriate to inform in writing e.g. email, letter, notice and obtain signatures on sale agreement.

Kishtaiah (Advocate) 18 April 2012

You also please write to the payee of your cheque that you have cancelled the deal for obvious reason and that your cheque be returned to you since it is no more payable and there is no liability. He can file complaint u/s 138 NIA and if you can prove no liability, he wont succeed.