P Gupta (Practice) 04 September 2009

Cheques given by builder bounced

I, like lot of others, booked 3 plots with a known builder few years ago. The builder could/did not start the project because of getting no clearance.

When asked for refund, the builder did not show any interest. Some how I managed to get cheques from him for the amount that was due. I had to return original documents (kept the copies for record) to get the cheques.

Now the cheques have bounced. So I would like to know what my rights are.

* Do I have to re-negotiate (stating all over again) to get the money/new cheques? Re-negotiations won’t be easy. Builders/developers in general do not return the money easily and can drag the cases for years.

* Is the builder obliged/bound by law to issue new cheques quickly because previous cheques bounced? If yes, it could be simpler.

* Can I take help from court to intervene for simply issuing me new cheque(s) in lieu of bounced ones or court will also restart the whole case?

* Can the builder say that he was not supposed to issue cheques, no amount is due etc. etc.? Can he drag the case?

* Can I approach consumer court? Decision from Consumer court could be quicker.

Thanks for help.

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10 Replies

Md Shadab Ansari (Law Student & Human Rights Activist....) 04 September 2009

If the check was in ur name or ac payee u can prosecute him.Consult a lawyer soon.

PARTHA P BORBORA (advocate) 04 September 2009

PL SEND A DEMAND NOTICE WITHIN 30 DAYS FROM THE DATE OF BOUNC OF THE CHEQUE ALLOWING HIM 15 DAYS FOR PAYMENT. IF NOT PAID U MAY FILE A CASE U/S 138 N I ACT AGAINST HIM. A NEW CHEQUE IS NOT NECESSARY JUST FILE THE CASE.

PARTHA P BORBORA (advocate) 04 September 2009

IT IS NOT NECESSARY TO FILE A CASE BEFORE THE CONSUMER FORUM AS THEARE IS A SPECIAL ACT FOR THE SAME. I.E THE N I ACT. THAT IS THE PROPER FORUM TO FILE A CASE OF NEGOTIABLE INSTRUMENT.

P Gupta (Practice) 05 September 2009

I know I can file a case in the court. In fact cases can be filed for any reason (or no reason). Happens a lot in India.

But I would like to know how strong my case is and how quickly I can get my money.

Because the builder has issued the cheque once, is he bound by all means to issue new cheque (which can be honoured) ASAP? Or can he still drag the case for years? What if he says that he hasn't issued any cheques?

Is the case about cheque bounce or recovery of money/investment?

PARTHA P BORBORA (advocate) 06 September 2009

THEARE MUST BE A DEFINIT REASON TO FILE A CASE. REMEMBER IT. OUR JUDICIAL SYSTEM IS NOT A JOKE. ANYWAY THE BUILDER IS NOT BOUND TO ISSUE A NEW CHEQUE. BUT REMEDY IS AVAILABLE UNDER N.I. ACT. R U AN ADVOCATE BY PROFESSION ? IT APPEARS IN UR OCCUPATION AS PRACTICE. LEGAL PRACTICE? IF YES U SHOULD KNOW THE PROVISIONS.

P Gupta (Practice) 07 September 2009

I am not an advocate and that's why such questions from me. Thanks in advance for help.

Basically, I would like to know if builder can delay my payments (previous cheques have bounced) or he has to pay me at earliest. Can he drag the case, if I file it, saying that he does not agree that he has to pay, he has no money, etc. etc.

Because he already issued the cheques, he has agreed that he is bound to pay me. Right? So he has to pay without any escape/delay.

PARTHA P BORBORA (advocate) 08 September 2009

Pl ask ur advocate to issue a demand notice to the payee within 30 days from the date of dishonor of the cheque allowing 15 days for payment. if not paid after laps of the period of 15 days u just file a case U/S- 138 NI Act. And in that situation the accused can not drag the case for a long time

PJANARDHANA REDDY (ADVOCATE & DIRECTOR) 08 September 2009

IN UR CASE MR.BOBARANI GUIDENCE ...IS CORRECT... WILL SOLVE THE ALL UR PROBLEMS,NO MORE SUGGETION REQUIRED IN THIS TOPIC, GENERALLY WITHIN 6MONTHS THE CASE WILL GET SETTLE IN THE TRAIL COURT,IF APPEAL,AND APPEAL IT DEPENDS UPON UR COURT AND BOTH SIDE ADVOCATES..ETC...ANY HOW U MIGHT SATISFIED WITH D REPLIES...

Raj Kumar Makkad (Adv P & H High Court Chandigarh) 23 September 2009

Mr. Gupta it seems that you are one of the most suspective persons. It has clearly been advised to take help of court instead of making representations to drawer of the cheques to re-issue them and in those cases, builder will have to seek bail and will have to attend court on each and every hearing personally and in these circumstances, your money is secured and he shall try his best to make compromise with you. This is best remedy providd by law.

ghansham das (self employed engineer) 25 September 2009

Sir,

Very first to refuse, then to drag on, then go for bail-appln- anticipatory, etc,

NBW/ summons are meaning less, & waste of time? when Complainant want his legitimate dues is not made available, under unforscene law as not learned before ?

There is no education system empowering justice?

Delay in for life time is not beyond, 'see read report of Gujrat samchar', 300 years will take for people of the democratic country to get justice,???

"suggest some concrete solutions pls.

Not the lingering reply Pls.? pls excuse if mistaken."

The Police service, for NBW/ search/ not available of accused will add many other cost factors,time, responsibility,etc? ?

Indirectly state / Justice/ are not repsonsible accountable

any where? pls.

Recently Mr Law Minister said 500 new court will be opened??

which will serve people with old lazy/ rules consuming time???

Sorry Pls. help better now.

Alternate-

Can he not deposit money under fake protest and drag on for years N years,

Session courts, high courts, u/s 482, cri appln, cri rev. appln on one and other grounds, for min 5-10 years, [supreme courts,Bench -Divison,etc, back to sessions, back to MM/ Distric courts? is not wrong ] does so possible in india-courts not suitable for such acts, if said is wrong??

Pls focus over it.

thanks