Cheque dishonoured - stop payment
piyush behal
(Querist) 19 March 2014
This query is : Resolved
We are exhibition service providers based in Noida , we have provided services to one of our client in Germany for which total invoiced amount was Rs 950000/-+ Taxes as applicable . We recieved an amount of 4.5 lacs as advance for services and on final delivery of services my client gave me cheque of balance amount which was stopped by him by giving stop payment instructions to his bank , which clearly shows his intentions , just wanted to know from you experts how can i sue this company and how long shall it take for me to get by money back.
looking forward for your expert advices...!!!!
Thanks in advance ...!!!
R.V.RAO
(Expert) 20 March 2014
pl. clarify what is the jurisdictional clause in the agreement/any correspondence between you and the client?
if the jurisdiction is indian courts,you need to file a recovery suit here in india or else follow the agreement clause signed with the client as to jurisdiction or arbitration or if there is any alternative disputes resolution mechanism agreed by both of you? .follow the same if you have agreed on any .
if you have no formal agreement with your client in the beginning itself , about the terms of fees and also disputes settlement mechanism etc... then you have ,his advance payment/ correspondence as a proof of your commercial relationship
with the client based on which serve him a legal notice,preferably through an advocate
cautioning the client that action will be initiated as per E.U.law etc... if no payment is made immediately .
Also inform the client if you are agreeable to renegotiate the contract price etc...
in western countries the fear of law is relatively more compared to the east.so i presume that a strong legal notice may do the recovery for you . good luck
piyush behal
(Querist) 20 March 2014
Dear Mr Rao ,
Thanks for your reply , i would like to update you that the client is from India itself and we have provided them services abroad , we had sent him the formal agreement on his formal mail id , but due to shortage of time he was unable to sent us the signed contract but we have received the advance for same project in our bank and we got the payment in 4 parts which is 2 lacs + 2.5 Lacs +170000 in cash + 426000 cheque which is exact as per the contract amount sent to him VIA mail and the last cheque was intentionally stopped by him. Kindly let me know what shall be the period in which we shall get our money back in case we sue him. Looking forward to hear from you. Thanks
Biswanath Roy
(Expert) 20 March 2014
You shall have to serve a legal demand notice stating the details of facts and see the result if you fail to recover your dues in that event you can file a civil summery suit against the debtor with the prayer for attaching goods and assets of the debtor before judgement for recovery of course if law permits. Consult a local Senior Lawyer.
piyush behal
(Querist) 20 March 2014
Dear Mr Roy ,
Thanks for you reply , what are the chances that we will get back our money . I have explained the entire scenario above . Could you please let me know how strong are we as e don't have any signed contract with us.
Looking forward to hear from you but we have the images for all the work done by us and delivered on time.
Kindly advice.
Thanks
Biswanath Roy
(Expert) 20 March 2014
The recovery of dues is possible by creating admissible evidence to substantiate your claim unless I go through all of your documents which can sufficiently prove for rendering services to your client.,. I cannot opine
you can write to me personally through my e-mail bnroy.advocate@gmail.com
R.V.RAO
(Expert) 21 March 2014
time frame for court case result for civil matters is usually longer .
but as advised above, your strong legal notice cautioning on - possible future attachment of assets -for failure to pay immediately will work in speeding up things.
after one or two reminders ,if client still did not pay you, consult your advocate that if your client is a limited company ,you intend to file a winding up petition for winding up their company,as company law
allows for such a course for recovery of dues from limited companies.
pl. note it is only a threat,to give a jerk,and this worked in the past.we r not filing in reality winding up petition at this stage.
uttamtibrewal@yahoo.com
(Expert) 22 March 2014
dear client...
for what reason the cheque has been stoped any specific reason mentioned....need to see all the documents then only proper relevant reply can be made in regards..you can mail me the details at uttamtibrewal@yahoo.com
Rajendra K Goyal
(Expert) 22 March 2014
All the documents need to be gone through for any useful advise. consult a local lawyer and show him all the documents. Meanwhile send notice for dishonor of cheque.
Biswanath Roy
(Expert) 22 March 2014
To place your grievance before the court you shall have to establish the facts, which are (a) that you rendered service to your client persuant to a contract which may be oral also and (b)the cheque which was returned by the Bank relates to your service and (c)it is a fraud over the statute because the cheque which was issued as payment towards the dues is a designing one in as much as the Drawer had no money in the Bank or had insufficient money so it is a fraud and cheat case.
Guest
(Expert) 22 March 2014
The question is, what sort of documentary evidence you have with you, i.e., the order of your client, agreement, acknowledgment of your invoice, corresondence and their response of any kind, etc.?
T. Kalaiselvan, Advocate
(Expert) 23 March 2014
The email agreement, work order documents, payment transactions through bank cheques or net banking any other legally valid transactions are enough to prove your cause of action. Firstly, issue a lawyer's notice demanding the cheque amount and after that follow the legal course of action both through criminal and civil courts of law.
V R SHROFF
(Expert) 23 March 2014
issue notice // initial legal procedure. It is enforceable liability.
krishna mohan
(Expert) 27 March 2014
It is assumed that there is no failure on your part to discharge your entire contractual obligations. It is also assumed that you have sent in a valid written offer and the same is accepted by them in writing. When it is accepted and received the services then it becomes a binding contract and subsequent payment as per your offer a solid evidence towards that. Even if your proposal contains a clause for arbitration, you can invoke that clause in the legal notice to be issued to recover your dues. Consult an experienced lawyer. Another remedy open to you is cheque dishnour criminal case. bouncing case
