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Viplav Karekar   14 November 2015

stop payment on cheque

Up Untill a few days back I used to stay in an hostel in pune . When I quit the hostel I was issued a pdc cheque for my deposited amount(security). But when I deposited the cheque I came back as 'payment stopped ' . There is no apparent reason for hostel to stop payment as the cheque was issued only after completing all formalities .They have been avoiding my calls.since then . My question is 1) what should be my course of action under these conditions? 2) Is the hostel owner legally obligated to pay me or not after the stop payment action ? Thank You


 4 Replies

siddhartha sinha   14 November 2015

Do you have any written/oral record such as agreement paper for the fact that he owes you money i.e. he took security deposit from you? How did you pay deposit ? Through bank or cash. Did you take any receipt? Send him a regd. letter immediately asking him to pay the money within 15 days from receipt of the letter. Mention very clearly that he owes you money. Yes he is liable to pay even if he has stopped payment. The reason he mentions for his defence for cheque bounce is to be seen first. But I hope you have the cheque with you right now.

VIJAY K. TEOTIA (ADVOCATE)     14 November 2015

Send him statutory notice of demand. After expiry the period of 30 days from the receipt of notice, file complaint u/s 138 of NI Act. He is liable to pay once cheque is issued. He is under obligation to maintain balance on the date of cheque. Although he can stop payment but balance has to be maintained.

Kumar Doab (FIN)     14 November 2015

Cheque is not encashed since the issuer directed the bank to 'Stop Payment'.

Issue a notice to the issuer by Redg. Post to pay. Let him answer why he stopped the payment.



Augustine Chatterjee,New Delhi (Advocate & Solicitor at Law)     15 November 2015

Send him a legal notice within the prescribed time Period . Thereafter if he doesn't repay you back , file a case within the period permitted by law.

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