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Surya Prakash Undralla (Comman Man)     11 June 2010

Stop payment of Cheque by House owner

I have recently vacated a house and house owner has given me a cheque for the advance I paid. He has given the cheque from his wife bank account and when I have asked the reason he said he doesnt have enough money in his account. I trusted him as I have a two years relationship with him.

I have cleared all the dues honestly including the current bill and apartment maintainence. I have even paid money for tubelights which are not working.

I have taken the house for rent on March 10th 2008 and have paid the entire March month rent.

I have vacated the house on 6th June 2010 giving him proper two months notice according to the agreement.

At the time of vacating the house the house owner has asked me to pay the entire june month rent but I have argued that I took the house on 10th of the month and vacating four days in advance and he agreed with me orally.

But to my shock when I have presented the cheque to the bank it came back to me as my house owner has made a stop payment request to his bank.

My house owner is a bank manager and I think he knows in and out of the laws regarding the cheque instruments.

But I have been cheated at last even after being the honest. I dont know what to do as I have lost the rental agreement.


 9 Replies

Devajyoti Barman (Advocate)     11 June 2010

If the cheques has got bounces and one month has not passed since it has been dishonoured then you immediately send a notice calling upon him to clear the amount as mentioned in the cheque within 15 days from the date of receipt of notice failing which you have to file a case u/s 138 N.I.Act within one month after the expiry of that 15 days time inwhich case the drawer may be asked to pay twice the maount as mentioned in the cheque.However loss of Rent agreement may cost you dearly as the drawe of the cheque is not the landlord. Consult a lawyer fast.

Jagannathan B (Independent)     12 June 2010

Since you have a two years relationship with him, try tosettle the case amicably.  Because the court proceeding will take quite some time to see the light of justice. If it isnot one month then you can follow the suggestion given by my friend. Thanks

YOGESHWAR. (ADVOCATE HIGH COURT-criminal /civil -youract@gmail.com)     12 June 2010

Join both the above advices and give notice and continue reconciliaton.


Well suggested Mr. Barman. U can call me for further help n queries if u need at 9871158578


You may follow the process as advised by my colleague Adv.Barman. Simultaneously, you shoud write a letter to the bank concerned through your bankers, setting out the facts of the case, copy to RBI demanding to let you know the reason given for the stop payment. Based on the response, you my file a cheating case as well. Please check what reason is given for the stop payment. Also check the agreement, if any for the terms of the rent.



Its simply not a check bounce case but a case of cheating and criminal breach of trust. NIA applies only if the check bounces . Stop payment is different issue altoghther. Further a check/Agreement are valuable securities,so 467 applies.Oral stuff doesn't matter. He won't agree amicable. By stopping payment he's got out or the purview of NIA and attracted 420,406 and 467 of the IPC.

Dharmesh Manjeshwar (Advocate/Lawyer)     15 November 2011

well quite a situation ! U can issue a demand notice to the Payer of the cheque as well as the Landlord                 ( Husband ) stating facts of the rental agreement, cheque issued by Payee on behalf of the Landlord ( Husband ), it's dishonour and demand the cheque amount within 15 days from the date of receipt of the saaid notice ( if one month has not passed from the date of it's last dishonour ) .... In case of non-compliance by them file the cheque dishonour case against them ....... mention all true facts in your complaint ....... as far as loss of the rental agreement is concerned ..... u may prove the said fact through witnessess also .......


Bombay High Court decision on NIA and stop payment. Other high courts have ruled differently:



There's no edit provision in comments/posts.Should have been there.

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