Cheque not returning from my land owner

Request the vendor (seller) to return the cheque, if he does not oblige issue a legal notice followed by a suit for permanent and mandatory injunction.

It is better to consult and engage a local prudent lawyer for analyses of facts, professional advise and necessary proceeding.

You may give Stop Payment instructions to your bank duly mentiining the cheque number.

Simultaneously send a legal notice to the Vendor to return the cheque and also inform therein the fact of yor giving Stop Payment instruction to your bank.

If the terms and regulations including consideration is reduced in writing, and a stop payment was already issued, file a formal complaint before jurisdictional PS stating that you have issued Ch.No............of Bank................for Rs.............fvg:.................and the seller has reported the loss of cheque and enclose that written communication from the seller about the loss of cheque and state that though stop payment is given, if the cheque fells in wrong hands, it may create problems to you.  Ask them to accept complaint as a formality.

In case of cheque lost, the drawer can do action as follows.

Banks instruct following modes of requesting for stop payment of cheque and contact such an issue:

1. The account holder can place an online request to the bank.
2. The account holder can make a call to the customer service helpline number.
3. The account holder can visit personally to the branch office and give a written request.

You have rightly given the stop payment instruction. You may follow up this action by giving due intimation to the vendor as to how and why the stop payment instruction has bee issued.

Stop payment also attracts the provisions of / punishment under section 138 of the Negotiable Instruments Act,1881

Banks do not accept stop payment instructions if the account does not have a balance sufficient to cover the funds of the cheque for which these instructions are being given.

Further, this is a case of the cheque being misplaced by the payee where he was already paid in full. Therefore, I feel giving Stop Payment for the cheque (which the Queriest confirmed having already given) does not attract the punitive provisions of Section 138.

All the there is no lawful debt which is the prerequisite for an action under Section 138 NI Act.

@SIVARAMAPRASAD KAPPAGANTU::  Sir,   Kindly provide such reference if for your following reply, as I have never come across any such stipulation or practice in banks.

"Banks do not accept stop payment instructions if the account does not have a balance sufficient to cover the funds of the cheque for which these instructions are being given".

@GLN Prasad Garu, these are the internal instructions of our Bank. The logic is that if there are no sufficient funds, there is no need to give stop payment as it will get returned by the bank and the Customer has to face the provisions of Section 138. This rule is to discourage the Customer (Drawer of the cheque) does not give Stop Payment Instructions to avoid or escape the provisions of Section 138.

@SIVARAMAPRASAD KAPPAGANTU::

Sir, please verify such rule once again, as STOP PAYMENT is given the drawer states the exact reasons for making such stop payment such as lost or mislaid and the bank gives acknowledgment stating that they are not responsible if the cheque is paid inadvertently.

A blank cheque with a signature or without a signature can be misplaced or lost.  The rule lacks logic and is weird.  When the drawer asks for stop payment, the drawee must oblige without imposing any conditions.  The account belongs to drawee and he is the sole authority to decide on such running of the account.

However in this query, bank has registered stop payment and further discussion may confuse other members. 

If the payee gives a letter to drawer about such loss of cheque, that is sufficient for stopping the cheque and Sec.138 is infructuous in this case.