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Contract

(Querist) 12 May 2009 This query is : Resolved 
I have purchase a Flat in Howrah, West Bengal and issued a cheque in favour of the developer of Rs. 25000/- but, as the developer did'nt performe his promise properly, I have dishonoured the issued cheque.
I that case what the legal obligation could arise against me as well as the developer.
n.k.sarin (Expert) 12 May 2009
Mr Abhinay,it is not important that cheque was dishonored, what is important that what reason cheque was dishonored. If there is sufficient amount in your account to honor the said cheque ,section 138 N.I.Act does not attract.developer has the only option to go to civil court.If there is insufficient fund in your account to honor the said cheque then section 138 of N.I.Act will be applicable and you will be liable to face the criminal trial.
A V Vishal (Expert) 12 May 2009
Dear Shaw,

The agreement between you and the developer is contractual in nature, My understanding about your query is that since the developer has not performed his part of the agreement you issued stop payment instructions to your banker. You must be able to prove the deficiency of service on the part of the developer, alternately you can issue an legal notice requiring him to perform his obligation and file a civil suit for specific performance or file a case under the consumer protection act.
adv. rajeev ( rajoo ) (Expert) 13 May 2009
U have to show ur defence if in case developer files a complaint against u u/s 138 of N I Act.
IT is ur duty to inform the developer for what reason ur cheque is bounced.
Because it will be the good defence for you in case developer files a complaint against u.


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