Booking amount cheque issued
Uttara
(Querist) 30 March 2012
This query is : Resolved
Dear Sir
I'm in the process of looking for a house to rent in Mumbai. I liked one house and upon the broker's request issued a cheque for "booking" the flat. No legal document (e.g. lease papers) were signed or exchanged. However, the very next day I realised that I would not be able to move in and I called the broker and informed him and he, in turn, informed the landlord
Meanwhile, I called my bank and stopped payment on the cheque
I repeat, no legal document exchanged hands and I didn't commit to anything on paper
The landlord has since then threatened me with legal action under section 138 of the Negotiable act and is asking to be compensated with half the value of the cheque
I wish to understand if his claims are right and what action would be required in such a case
Deepak Nair
(Expert) 30 March 2012
To succeed in a case under sec.138, the complainant needs to prove the liability of the accused beyond doubt.
In your case, there is no liability on your part. Thus any action under sec138 is not maintainable against you. Thus, no need for worry.
ajay sethi
(Expert) 30 March 2012
what is the amount involved? . in case legal notice is issued for cheque dishonour do reply mentioning that no deal was finalised the cheque was issued merely as token .
if money was paid as earnest money settle the issue with flat owner . you will spend more on legal fees defending the case
