You can approach consumer court against them for deficiency of service.
Sir, We are a small scale builders and having a partnership firm of three partners firm 'B' (X,Y, Z respectively ) . Two members of firm 'A'(X and Y) has previously done business and taken the service from a lift company. NOC of lift was pending for their projects and as per the deal between firm 'A' (X+Y) and the lift company the complete amount of services will be settled only after getting the same. We firm'B'(X+Y+Z) has given lift work for the same company for our new project . We paid the advance amount of Rs.4 lakhs through cheque (bank account of firm 'B') and made an agreement. They have done the intial work and stopped the remaining work claiming that they are in financial loss and further can't complete the lift work. For the termination of work and refund of balance amount Rs. 3,00,000/- they have given a one month post dated cheque and a guarantee letter. Now the owner has messaged that previously he has done business with our firm's two partners firm 'A' (X+Y) and balance amount is pending from their end. He doesn't owe anything to us and can't refund amount. Note: The transactions, payments and agreements between lift company and two firms is completely different. Please advise what can be done to get our refund.
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You can approach consumer court against them for deficiency of service.
You have to file a Civil Suit to solve the matter.
You can sue lift company to recover balance amount with interest
2) you can also file case of cheating,criminal breach of trust against lift company directors
3) on dishonour of cheque file complaint under section 138 NI
The owner's contention is not tenable. That is a separate deal and a contract and this is equally. Therefore, with no further delay, I would suggest you send a legal notice to them to finish the work on priority basis and compensate for the delay in time, failing which you will initiate civil suit for specific performance.
This is unfair on the part of the lift company.
It is illegal and untenable in law.
They are violating the contract and breaching the conditions which is unlawful and the agreement is liable to be terminated by which you would be entitled for all the rights as per the terms of agreement.
You can file a recovery suit besides a criminal complaint against the company for cheating and breach of trust offences.
First file cheque bounce case then think of other options. You will succeed.
Cheque bounce FAQs Negotiable Instruments Act
1A. Amended Cheque Bounce Provisions- 143A & 148…what is it?
Ans: Section 143A- It empowers the Court to order the drawer of the cheque to pay Interim Compensation - 20% - Without depositing this amount the accused cannot defend the case.
Section 148 – It empowers the Appellate Court to order payment pending the appeal against conviction
The Appellate Court may order the appellant to deposit an amount which shall be a minimum of 20% of the fine or compensation awarded by the trial Court.
This amount shall be in addition to the amount already paid by the appellant under Section 143A.
It received the assent of the President and was notified in the Official Gazette on 02.08.2018
Summary suit is a civil legal proceeding initiated for recovery of money due under any written agreement, cheque etc. These proceedings are different from normal recovery suit, as here the liability to prove that petitioner is not liable to recover any amount is on defendant for which he needs to obtain leave to defend from the court.
13. What is the validity of the cheque in day to day business?
The current validity of cheques is 6 months. However, please note that from April 1, 2012. The validity will change to three months as per recent directive of RBI (under Sec. 35A, Banking Regulation Act, 1949)
14. What can I do if a cheque given to me has been dishonoured?
a. The holder of a cheque that has been dishonoured can seek remedy in the following manner:
i) Action under Section 138 Negotiable Instruments Act (N.I. Act): Give notice under within 30 days of receipt of information of dishonour from the bank. In case of non- payment by the drawer within the notice period of 15 days, then the holder must institute a complaint case for prosecuting drawer within 30 days of expiry of notice period.
ii) Civil Action as Summary Suit: Issue notice within 3 years from issue date of cheque and institute a summary suit for recovery of cheque amount along with interest and legal expenses. The notice can also be used while filing summary suit for recovery of money.
iii) Criminal Action: Initiate criminal proceedings by filing complaint under Section 420 Indian Penal Code (I.P.C.) within 3 years from issue date of cheque. Please note that there is no provision for recovery of money under Section 420 I.P.C. and this section is meant only for prosecution of the drawer of the cheque when dishonest intent to cheat in inferred.
15. What documents / evidences do I need at the time of filing complaint case under Section 138 N.I. Act?
You will need at the minimum, the following:
a) Proof of service of notice - receipt of postal department / courier
b) Copy of notice
c) Cheque in original
16. What can I do if I do not file a complaint within 30 days from expiry of notice period?
If you have not filed a complaint case within 30 days after expiry of notice period, you can file a summary suit for recovery of money and initiate criminal proceedings under Section 420 I.P.C. within 3 years from the date of issue of cheque.
17. What can I do if it has been more than 30 days since I received information of dishonour of cheque and 6 months has passed from the date of issue of cheque?
a. Other remedies are also available to recover the cheque amount. You can file a summary suit for recovery of money and initiate criminal proceedings under Section 420 I.P.C. within 3 years from date of issue of cheque. In case the cheque was never presented during its validity period then a summary suit is the only available remedy for recovery of money.
(Notice can be given to drawer up to 3 years from date of issue of cheque for instituting a summary suit for recovery of money. Criminal proceedings for prosecution of drawer can also be instituted within 3 years from date of issue of cheque under Section 420 I.P.C.)
18. The drawer is asking me to settle the claim at a reduced value. What should I do?
Its up to you to settle the claim at a reduced value as the same will save your precious time, as well as legal hassle. Now-a-days courts are also encouraging amicable settlement between the parties. However, if you settle the dishonoured cheque amount at a reduced value, you will lose all remedies available under law.
19. What remedy do I have if the drawer delays in settling after conviction?
In a recent 2010 judgement, Supreme Court has laid strict rules to deal with such delaying tactics. Delay in settling cheques bounced will cost up to 20% of the cheque amount post-conviction. This is detailed as: 10% at District Court level; 15% at the High Court level; and up to 20% at the Supreme Court level. For e.g., Defaulter going for settlement will have to pay 10% of the cheque amount to avoid going to the jail.
20. Can I recover interest and legal expenses from the drawer of the dishonoured cheque?
Yes, you can recover interest and legal expenses from the drawer of the dishonoured cheque in a summary suit for recovery of money, but not in the proceedings initiated under Section 138 N.I. Act. However, under Section 138 N.I. Act the award maybe higher than the cheque amount.
21. What should I do if the drawer does not make payment upon receipt of notice?
You can adopt either or any of the remedies available to you:
a) Can file a criminal complaint against drawer of cheque under Section 138 of N.I. Act.
b) Can file a summary suit for recovery of money, interest and legal expenses.
c) Can file a criminal complaint against drawer of cheque under Section 420 of I.P.C. Please note that there is no provision for recovery of money under Section 420 I.P.C. and this section is meant only for prosecution of the drawer of the cheque.
In case a person has filed suit for recovery, then he is not precluded from filing a complaint under Section 138 of the Negotiable Instruments Act and Section 420 of the Indian Penal Code. The pendency of criminal matters would not be an impediment to proceeding with the civil sui
You should approach the concerned consumer forum for the redressal of your grievance.