• Property cancellation cheques get bounced back

I had invested in a flat from a builder named as 'Dreamzinfra' but after waiting for more than 7 months they didn't started the site construction and told me there could be possible 1 year more delay. So I went to there office and cancelled the booking and received 3 months post PDC SBI Bank cheques. By the time of cancellation I had paid 6.75 lakhs to the builder. 

Now on 11-Aug-14 just one day before the cheque en-cashment date the builder called me and told me to not to deposit the cheques as there is insufficient funds in that account and asked to return the SBI cheques and replaced it with the one month PDC State Bank of Mysore cheques with 2.5 % monthly interest paid along with the same written on the company letterhead.

Now next month if I deposit those cheques and in case it gets bounced then what legal action I should take on or before that? I have all the documents copy and the SBI cheque scanned and photocopies.
Asked 2 years ago in Property Law from Bangalore, Karnataka
1) in the event cheque of Rs 6.75 lakhs get dishonored you can issue legal notice under section 138 NI within period of 30 days from date of intimation of dishonor 

2) in case builder fails to make payment within period of 15 days of receipt of notice you can file complaint before Magistrate under section 138 NI 

3) you can also file summary suit for recovery of amount of Rs 6.75 lakhs with interest
Ajay Sethi
Advocate, Mumbai
23118 Answers
1214 Consultations
5.0 on 5.0
Dear client,

A. such builders are chronic defaulters of payments as it had already happened with you.

B. therefore, best remedy for you is to take Demand Draft for Rs.6.75 lacs from said builder to be in driver seat.

C.you can file recovery suit in civil court for recovery of Rs.6.75 with interest if said cheque gets bounced but all legal actions involves a lot expenses and hanging around in courts which itself is a great harassment

D. choice is yours but i recommend option B of my reply to you.
R.K. Nanda
Advocate, New Delhi
457 Answers
0 Consultations
3.8 on 5.0
You can issue a notice to the builder for not giving you possession and delaying the same and to return the amount given and then file a case in the consumer court for deficiency of services and claim damages.you can present the cheque and if it gets dishonoured issue a legal notice under section 138 and for recovery of amount due. Then file a civil suit for recovering the amount and 138 cheque case against him.for any doubts opt phone consultations.
Jeshma Mohandas KP
Advocate, Kozhikode
567 Answers
1 Consultations
3.5 on 5.0
1) under section 138 Ni you cannot demand legal fees , interest . you can only demand amount of dishonoured cheque ie 6.75 lakhs . 

2) if you want principal amount with interest then file summary suit under order XXXVII of CPC
Ajay Sethi
Advocate, Mumbai
23118 Answers
1214 Consultations
5.0 on 5.0
Dear client,

A, yes,if the cheques gets dishonor on the given date then  send legal notice to the dealer asking him to pay full amount with interest/lawyer's fees in DD or cash within 15 days of receipt of legal notice.

B.if builder fails to make said payment within 15 days then file complaint in magistrate court under section 138 of NI Act.
R.K. Nanda
Advocate, New Delhi
457 Answers
0 Consultations
3.8 on 5.0
If cheque gets dishonoured immediately issue a legal notice for recovering the amount and under section 138 of NI act and then file a suit for recovering the amount and file a 138 case against him.issue a legal notice for not giving possession and file a case in the consumer court for deficiency of services with damages
Jeshma Mohandas KP
Advocate, Kozhikode
567 Answers
1 Consultations
3.5 on 5.0
Do it immediately without any delay
Jeshma Mohandas KP
Advocate, Kozhikode
567 Answers
1 Consultations
3.5 on 5.0
Hi, you have to deposit the cheque with in 3 months from the date of the cheque and if it is dishonored with in one month from the date of dishonor you have to issue legal notice.
Pradeep Bharathipura
Advocate, Bangalore
4104 Answers
133 Consultations
4.3 on 5.0
1. In the event the cheque issued to you of 6.75 lakhs towards the refund of the advance amount paid to the builder gets bounce due to shortage of funds lying to the credit of the builder in his bank account you can set the law in motion by issuing a legal notice to him. The said notice will have to be issued within a period of 30 days.

2. If in spite of the lawyer's notice he fails to refund the amount of 6.75 lakhs then you may proceed to the court and file a case for cheque bounce against him. If he is held guilty he may be sentenced to 2 years in prison by the court. 

3. A case of cheque bounce alone will not get you your money back. In addition to prosecuting him for cheque bounce you should file a lawsuit for recovery of the amount in question along with interest and the amount spent on availing the legal remedies i.e the fee of your lawyer.
Ashish Davessar
Advocate, Jaipur
18057 Answers
445 Consultations
5.0 on 5.0
1. When your lawyer sends a legal notice to the builder he may demand that the latter shall pay in addition to the principal amount + interest the amount of legal charges incurred by you. You have the right to demand from him in your lawyer's notice the legal charges.

2. If you file a lawsuit for recovery of money you may also claim therein the legal charges in addition to principal amount and interest accrued thereon
Ashish Davessar
Advocate, Jaipur
18057 Answers
445 Consultations
5.0 on 5.0
1. You should have filed a complaint case before the local District Consumer Dispute redressal Forum alleging deficiency in service and unfair business practice praying for direction upon the builder to start construction immediately and pay damage and cost,

2. However, since you have already accepted the cheque towards refund of the said amount, send him a legal notice within 30 days of such dishonour claiming the amount with in 15 days,

3. if he fails, file an applicaton u/s138 of N.I. Act,

4. Engage a lawyer for the matter.
Krishna Kishore Ganguly
Advocate, Kolkata
12043 Answers
228 Consultations
5.0 on 5.0
A. Better you wait till payment which is the date fixed by the builder with interest to avoid your future valuable time.

B. In case if the builder cheque bounced, later you have to issue a legal notice under Sec 138 within 30 days to the builder by giving 15 days time as per the Negotiable Instrument Act.

C. Subsequently, you can approach the magistrate court by lodging a criminal case under PCR and you can also recover this amount under summary proceedings under the Civil Procedure Code.
B.T. Ravi
Advocate, Bangalore
733 Answers
29 Consultations
5.0 on 5.0

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