• Recovery suit

i have sold my plant machine to a person he payed me half amount, at that time and we made an agreement in which i given him time for four months and as security he given me bal amount post dated cheque, as per agreement if he not deposit the bal amount to my bank  on given date then I can use the cheque , and after depositing the amount i will give him the NOC from my bank in 7 days,
but now he failed to make the payment , and his cheque is returned by the bank, now he given me a notice and saying that i have not payed the bank and i persented the cheque to bank for blackmailing 
him,but today the bal amount to be deposited is the amount bal in him, so how can he given me the notice ? and what should i do now?
Asked 3 years ago in Civil Law from Jaipur, Rajasthan
1. You have  a two fold legal remedy against this person.

2. As per the agreement he was obligated to pay the balance amount within 4 months from the date of agreement, failing which you could present for encashment the cheque given by him. Since he has not fulfilled his promise you may file a suit for recovery against him in the court. The filing of the suit may be preceded by issuing a lawyer's notice to him, but this is not mandatory. 

3. If the cheque issued by him and presented by you to the bank has been dishonoured then you may file a criminal case for cheque bounce against him. It carries an imprisonment of up to 2 years. The legal process to file a criminal case has to begin by necessarily issuing a notice trough your lawyer to him demanding the payment of the balance amount. If he does not pay even after the notice then you may go ahead and file the criminal case against him in the court.

4. Both the cases can be filed simultaneously.
Ashish Davessar
Advocate, Jaipur
23097 Answers
639 Consultations

5.0 on 5.0

1) issue legal notice to purchaser to pay balance amount for the plant and machinery sold to you . 

2) in said notice mention that cheque has been dishonoured on presentation and give him 15 days time to make payment 

3) if he fails to pay file summary suit under Order XXXVII of CPC for recovery of outstanding dues with interest . 

4) also file complaint under section 138 NI for dishonour of cheque . both cases can proceed simultaneously
Ajay Sethi
Advocate, Mumbai
46667 Answers
2759 Consultations

5.0 on 5.0

1) As there is an agreement for the payment of the remainder and as the person has failed to pay the balance as agreed on the date stipulated you have acted in good faith and according to the terms of the agreement and therefore you can certainly move a civil case against him for recovery of the money.This can be a summary suit.

2) Alternately you can file a cheque return case under the Negotiable instruments Act which in the end result not only award imprisonment to the accused but will order a compensation for you which can be up to double the check amount and the litigation cost.

3) Engage a lawyer locally and issue a notice to him immediately. Although his notice to you sounds frivoulous it is advisable that you send a reply through your counsel.
S J Mathew
Advocate, Mumbai
2263 Answers
110 Consultations

5.0 on 5.0

Dear Querist

First of send a reply of this Notice with the help of lawyer if you are unable to send the notice yourself.

After that if you think that the litigation should be filed against him then you may file the same before civil court.
Nadeem Qureshi
Advocate, New Delhi
4875 Answers
225 Consultations

4.9 on 5.0

1. Your statement that " i will give him the NOC from my bank in 7 days"  and "i have not payed the bank and i persented the cheque to bank for blackmailing" needs further elaboration,

2. Send a reply to the notice received by you fittingly,

2. Demand the balance amount from the party to be paid within next 15 days,

3. File a Recovery Suit against him,

4. If you decide to file case u/s138 of N.I. Act, do not mention that those cheques were post dated chaques since as per latest judgment of the Apex Court, PDCs and Security Cheques are not covered under N.I.Act.
Krishna Kishore Ganguly
Advocate, Kolkata
18741 Answers
452 Consultations

5.0 on 5.0

you have legal agreement upon which transaction is made and security cheque is given to you. at this stage you have accrued legal right to initiate legal proceeding against him for the recovery of amount. if he alleged any thing against you then let him to take action against you and let him to prove it. if he alleged without support of any document then it'll be impossible for him to prove it in the court. you should take action against him and don't mind on the legal notice. he is trying to frame you in false case and there is no recourse in our legal system to prevent any person from lodging false case. send him a legal notice for repayment of balance amount and after his refusal you should sue him.
Shivendra Pratap Singh
Advocate, Lucknow
5066 Answers
78 Consultations

4.9 on 5.0

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