Stop payment of cheque
Law Student
(Querist) 26 December 2013
This query is : Resolved
Dear Experts,
I have a peculiar situation, wherein I had to put a stop payment on one of the cheques issued by me. Facts of the case are -
1) I had a microwave for which I called the authorized service centre. The Microwave was overheating and shutting off withing a minute.
2) The service centre personnel identified a part, stating it to be defective and replaced it. (This part was ~50% of the microwave cost)
3) The payment was made by way of a cheque after receipt of bill.
4) Once he went, the microwave was again giving exactly the same problem of overheating. (ie it had not been repaired)
5) I sent the service technician SMSs, tried calling him, again put complaints in the call centre, sent emails stating my concern, but no one bothered to call back. The service personnel did not even take my calls.
Looking at the above, that the company and the authorized service centre is not interested in rectifying the issue, I put a stop payment to the cheque.
This incident and putting a stop payment was mentioned in my final email to the company and I requesetd them to hand over the cheque back to me as service was not performed.
My question: In such an incident am I liable under Negotiable Instruments Act (keeping in light the recent SC judgement where stop payments also come under purview of sec 138). What precautions can I take to safeguard myself?
Thanks a ton for your advice.
Nadeem Qureshi
(Expert) 26 December 2013
138 of NI Act will be applicable but these communication or mail will br very strong proof in your favour.
feel free to call
Devajyoti Barman
(Expert) 26 December 2013
academic query.
No citation is provided here.
Stop payment does come under purview of NI Act.
Law Student
(Querist) 26 December 2013
Thanks Nadeem and Devajyoti.
My question is not an academic query but an actual query with actual facts.
What precautions can I take to safeguard myself as the cheque has not been presented to the bank. Further, can I currently sue the company for deficiency of service and restrictive trade practice (as the cost of the component is ~50% the cost of original product. Further, the component pricing of the company is ~3 times the competitors component prices).
Devajyoti Barman
(Expert) 26 December 2013
If you find apparent defect in their product and no effective after service to rectify the same, then file case before the consumer forum.
This may come handy of they deposit the cheque and initiate action under NI Act.
ajay sethi
(Expert) 26 December 2013
you have not made payment of goods . had you made payment and goods were defective you could have moved consumer forum for deficemncy in service and sought compensation .
better resolve issue amicably with company . they will agin send the technician as payment has not been received by them . even if you make payment under terms of warranty the manufacturer would be liable for replacement of defective goods
Adv. Chandrasekhar
(Expert) 26 December 2013
U approach the consumer fora for not only getting redressal of your grievances about the product but also as a safeguard defence in cheque return case. It is mandatory to them to issue a legal notice to you before filing cheque return case. Instead of keeping mum, you should respond to the legal notice with all the facts available with you and justifying the issuance of "stop payment" order to the bank.
V R SHROFF
(Expert) 26 December 2013
paid or promised to pay is same terms of service contract.
sue in consumer forum
no NI for u.Reply notice if issued u/s 138
Law Student
(Querist) 26 December 2013
Thank you everyone for the responses.
Rajendra K Goyal
(Expert) 26 December 2013
Reply the cheque bounce notice with the guidance of your lawyer.
Lodge complaint to consumer forum.
