Sridhar V Sridhar (Employee) 25 February 2023

Bank cheque

I have paid to a builder an amount on sale of agreement for a flat in a project without having rera registration.

After some time, I have cancelled my soa, based on the terms, builder gave me return post dated cheques for 1 month.

1. What are the scenarios of non encashment of cheques, like insufficient balance, stop payment instruction by issuer to bank, etc.

2. How can I file a case, in all possible scenarios, against issuer of cheque, if the cheque is not honoured.

3. What are the precautions, that I need to take before filing a case against him.

Thank you.

Sridhar.

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4 Replies

T. Kalaiselvan, Advocate (Advocate) 25 February 2023

If the cheque is returned by bank for the reasons stated by you, then you can take cheque bounce action against the builder under the provisions of section 138 NI Act.

You can take the assistance of an experienced advocate to file cheque bounce case.

You have to issue a legal notice demanding the cheque amount before filing the cheque bounce case.

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Dr J C Vashista (Advocate) 26 February 2023

I agree with the opinion and advise of learned expert Mr. T Kalaiselvan.

Besides filing a complaint u/s 138 of the NI Act, 1881 you can institute a suit for recovery of the amount paid by you.

Whether it is your presumption or real ? If real, you should consult and engage a local prudent lawyer for appreciation of facts, professional advise and necessary proceeding.

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Rama chary Rachakonda (Secunderabad/Telangana state Highcourt practice watsapp no.9989324294 ) 26 February 2023

If the cheque issuer fails to make a fresh payment within 30 days of receiving the notice, the payee has the right to file a criminal complaint under Section 138 of the Negotiable Instruments Act. However, the complaint should be registered in a magistrateâ€™s court within a month of the expiry of the notice period.