Ajay (Assisstant System Engineer) 19 August 2013

Requesting some legal advice

Dear Sir,

Requesting Some legal advice..

I have made an agreement with Mr. XYZ person to buy site costing 12L via Mediator .. given advance amount of 2L by Cheque.. and Registration to be made after 3 months... but 2 days after the agreement i have decided to cancel the deal due to some family problems... and on the same day i went to bank and stopped payment of cheque.. informed same thing to Mediator also.. and still(10 days over) i have not received any message from owner( Mr. XYZ ) as i dont have any contact info of Mr. XYZ .. original agreement is with me and 2L cheque whos payment i have stopped is with Mr. XYZ..

Agreement is not registered at Sub-Register office.

Please Suggest me what are legal things i may need to follow..

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2 Replies

Suneet Gupta (www.vashiadvocates.com) 19 August 2013

I do not understand why you are worrying. As you have not made any payment (the cheque was stopped), the ball is now in the opposite party's court.

Legallly, what the opposite party can do is to try and bring a case under the Negotiable Instruments Act for dishonour of the cheque. However, the payment was for purchase of property, and the agreement thereof is not registered. Therefore, the agreement cannot be enforced, and the court will not order payment of the cheque. The maximum you should be liable for is damages caused by dishonour of cheque.

I suggest that you just relax and let the other party call you. Please ensure that your bank does not clear the cheque and that the stop payment instructions are permanent. the validity of a cheque is 3 months and so you will need to be cautious for this period.

Disclaimer - Please note that the above is not a legal advice, but only my view on the circumstances of your case, as I understood from your query.