Cancellation of cheque prior to encashment
I had given cheque to the builder of my property in year 2008 without any date as insisted by builder as a caution amount.As the amount was exceeding the total price of property,i later gave instruction to the bank to stop payment against the cheque no. in 2008.
The builder put the date of 2014 in given cheque and tried to encash it,but the bank returned the cheque back.
Can i fall in any legal problem ?
Asked in Civil Law from Vadodara, Gujarat
Giving stop payment instruction to bank does not offer you any escape route from a criminal prosecution for bouncing of your cheque. If he files a case against you then defend yourself in the court.
cheque has been dishonoured on grounds of stop payment . builder can file case under section 138 Ni of Ni Act on account of dishonour of cheque
An undated cheque has also stipulation that it will be honoured within 6 months i.e. date of its validity from the date of issue. Since the cheque was issued in 2008 and stop payment instructions had been issued in 2008, the cheque is not valid document. No action under section 138 NI Act or under civil law can be initiated against you.
Advocate, New Delhi