• Security deposit cheque bounced

Hello, need some expert advice.
We paid 1 lakh as security deposit to buy a house. As we progressed on the getting a sale agreement in place we realised that some of the terms set by the seller were not acceptable to us. So we decided to withdraw it. The seller promised to return the security deposit and he issued a post dated cheque which ultimately bounced. We have filed a case against him for cheque bounce. Please advise how we can legally convict him in this case. What are the chances of we winning the case.

Ps: there was no legal contract between the parties when we made the security deposit. The deposit was made based on verbal agreement between the parties.

Regards.
Asked 11 months ago in Criminal Law from United Kingdom
Religion: Hindu
You have done what you ought to have done. A cheque bounced due to insufficiency of funds in the account of the drawer is actionable through a criminal prosecution for cheque bounce which carries an imprisonment of up to 2 years. To prove his guilt in the court you have to lead evidence to show that the cheque was issued by him to discharge his liability i.e refund of the security deposit given to him. However, a mere case of cheque bounce does not result in the recovery of the amount covered by the cheque. A civil suit for recovery of money is required to be filed to recover the amount with interest.
Ashish Davessar
Advocate, Jaipur
20820 Answers
556 Consultations

5.0 on 5.0

1) was payment made by cash or cheque? 

2)did you receive any receipt for SD? 

3) i presume legal notice was issued on cheque dishonour .

4) did seller reply to legal notice ? 

5)once cheque is issued there is a presumption it was issued in respect of debt due and payable 

6)success in case depends upon evidence on record

Ajay Sethi
Advocate, Mumbai
33902 Answers
1882 Consultations

5.0 on 5.0

The cheque if issued for paying any consideration amount by the opposite party then he is liable for the payment legally.
This is to be proved and he can be convicted for this reason alone i.e. after proving his legally liable debt.
T Kalaiselvan
Advocate, Vellore
23890 Answers
238 Consultations

5.0 on 5.0

Hi 
You should file a case under 138 Negotiable instruments Act.

The grounds for filing a case under Sec 138 of Negotiable instruments are as follows:
1) You had made a payment of Rs1,00,000 to the builder and the money was a form of security deposit paid to the builder for the purpose of buying a house.  
2) Since there were differences an agreement to sell was not entered in to between the parties. 
3)  The builder agreed to refund the security deposit to you and hence issued an cheque.
4) The cheque so issued by the builder returned for want of funds. 
5) Security deposit is an acknowledged debt 
6) There is no requirement of any agreement/contract, given that yours is the security deposit to the builder. 
7) Any communication with the builder through mail, phone sms, whatsapp messages will be construed as additional evidence and hence advise you to keep them safe. 

Next steps
1) Within 30 days from the date of return of cheque, you should issue legal notices to the builder and ask him to pay the money within 15 days from the date of receipt of notice.

2) If the money is not paid within 15 days from the date of notice, you should file a case under section 138 of NI act in the courts having jurisdiction of the place where your bank is situated. 

Hope this helps.
Rajgopalan Sripathi
Advocate, Hyderabad
1076 Answers
99 Consultations

5.0 on 5.0

1. What is your objective in this matter?

2. Do you want to realise the amount mentioned in the dishonoured cheque or want to send him to jail only for dishonouring the said cheque.

3. File a cheque dishonour case against the said person u/s138 of N.I. Act.

4. He will be directed/forced by the Court to pay the amount with penalty, interest and cost by the Court.

5. If he fails to pay the above amount, he will be sent to jail.
Krishna Kishore Ganguly
Advocate, Kolkata
14907 Answers
355 Consultations

5.0 on 5.0

if case is filed in due order he is bound to disprove his guilty because according to section 142 of the negotiable instrument act burden of prove lies upon the accused to disprove his guilt. it is presumed under the  negotiable instrument act that when a cheque has been issued it was so made with a view to discharge of liability, so he accepted his liability by issuing of cheque. you will get success 
Shivendra Pratap Singh
Advocate, Lucknow
4139 Answers
59 Consultations

4.9 on 5.0

if consideration of the cheque is legal then you will succeed. no doubt. 
Shivendra Pratap Singh
Advocate, Lucknow
4139 Answers
59 Consultations

4.9 on 5.0

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