Cheque stop payments -reg
purushotham
(Querist) 08 March 2015
This query is : Resolved
Dear Sir
We have the Business related to FMCG distribution , In which we Buy the Stocks from our SUPER DISTRIBUTOR
to which we give the Blank Che ques only favoring his name not the amount
The Amount will be filled only after the invoice is raised and will be presented for honoring on the Date agreed upon
In the my case i had given a cheque for last invoice made for Rs 97000/-
as per the to the statement given
But my super stockist claims that i have the debit Balance of Rs 3.10 lacs as his accounts is been mismatched and he is changed the statement after my blank cheque with him
Anticipating issue i went and gave the stop payment advise to Banker
Now They are threatening me of Going legally and say it is a criminal issue
still saying we will reconcile as few invoices are not reflecting in my accounts and few credits given to my accounts are not given to me every now & and then he changes his statement and if i point out a mistake
still i am saying i will pay for what ever i have bought , now he is not agreeing as he is under pressure form his partners as he has mismanaged lot of his accounts and prove he is right
he is presenting the cheque tommorow which is advised with bank for STOP PAYMNENT
please do advise
Anirudh
(Expert) 08 March 2015
Are you having all the purchases made by you from this Distributor?
Have you got all the invoices, and the details of payments made by you including the date of payment, cheque no., amount etc.?
Are you aware how many invoices are yet to be paid - their details i.e. invoice no., date, amount?
Are you aware what is the date by which you have to make the payment against those pending invoices? (Keep the detail of the same)
Now, how many cheques of yours (without mentioning the amount) lying with the distributor?
Keep everything ready. First he has to present the cheque, once the cheque is dishonoured he has to give you first the legal notice. You have to reply to the legal notice. At that time, you have to give a fitting reply stating complete facts of various purchases made by you, the invoies thereof, the details of payments against each invoice etc., and how you are not liable to pay Rs. 3.1 lakhs.
Further, having stopped the payment, you will agree that you have to make the payment against the last invoice which was for Rs. 97000. Better, make the payment by taking DD (not cheque) in favour of the Distributor and send it along with your reply to the legal notice.
If he filed a case, defend it on merit right from day one by submitting a detailed statement before the Magistrate's court.
IN FUTURE, PLEASE NEVER EVER GIVE ANY CHEQUE UNFILLED. THIS IS A LESSON FOR YOU.
ajay sethi
(Expert) 08 March 2015
agree with Mr anirudh
Guest
(Expert) 08 March 2015
Is it a real problem pertaining to your business? I have my own doubts about your case.
However, If it is a real problem, I guess, you have invited problem by issuing cheque in the personal name of the individual instead of the firm from which you were purchasing goods. Case can become complicated in the absence of any specific agreement about issue of cheques in individual name. In that case, while cheque bounce on stop payment may probably not be serious enough, but your liability for making distributer's firm for purchase of goods may pose problem for you.
Rajendra K Goyal
(Expert) 08 March 2015
Firstly prepare all your accounts and payments to the firm through your Banker / other wise. Pay any balance due. Request them for reconciliation of accounts / entry. If he is good distributor he would agree and only by this process you can continue business with them.
Otherwise consult some expert lawyer in cheque bouncing and defend yourself on merits.
SAINATH DEVALLA
(Expert) 09 March 2015
Your's must be a registered firm and also UR super distibutor's. Part of UR query is confusing. U said firstly U had issued a blank cheque and later on U have said U had issued a cheque for 97,000. Anyway if he proceeds legally regarding the stop payment made for the cheque, U have to fight it out only on merits from UR side
T. Kalaiselvan, Advocate
(Expert) 11 March 2015
