Cheque Bounce - Is my case treated as an offence?
Murugesan K
(Querist) 28 June 2011
This query is : Resolved
Sir,
I bought an apartment from builder and the builder asked a 1 lakh in cash apart from what is mentioned in record (sale agreement). But, the 1 lakh is part of estimated apartment cost I agreed to pay to builder. However, I did not have cash and I gave him a cheque and told him that I will pay by cash and get the cheque back. In the mean time there were quite a few issues in the apartment but the builder did not fix it. I informed the builder that I would pay the 1 lakh only fix the issue and I stopped the cheque. But the builder is saying that he would take legal action. Now my question is:
1. Can he take legal action though I do not have legal liability to pay this 1 lakh to builder?. (Registration is done, possession letter given, EB name transferred).
2. I have fund in my account, but I have only stopped the cheque. Can this be still an legal issue?.
3. Cheque I have issued(dated cheque) about to expire (closer to 6 months). Can he take legal action if the cheque is expired (crossed 6 months)?.
Please advise. Thanks.
Tarun Thakur
(Expert) 29 June 2011
1. Yes still the builder can take legal action against u if the cheque got dishonoured on ground of stop payment. Whether its a legal liability or not will be adjudicated in case.
2. stop payment is covered under 138 n.i act.
3. After expiry nothing remains.
DEFENSE ADVOCATE.-firmaction@g
(Expert) 29 June 2011
No NI 138 action possible and if process issued you can come out it and can also make lot of trouble for the builder.
Murugesan K
(Querist) 29 June 2011
Thank you very much. It really helps. It appears that the amount I need to pay is less than the work involved in fixing the issue. Any suggestion on how this can be handled for a smooth resolution?. Shall I look for a legal option against the builder for not conforming services he supposed to offer as part of aggreement? (Builder is liable to fix any issue in the apartment..right?)
