Cheque bounce on sale of car
I sold a car through a third party (broker) 10 months back. After selling the car, third party did not pay me back. The cheque issued by 3rd party bounced. I consulted a lawyer to put a case against the 3rd party on the basis of 'bounced cheque'. In the mean time the insurance of the car expired. Now I am in double trouble as neither I have received my money nor my car is transferred in the buyers name. In case of any untoward incident I am going to be implicated. My lawyer in stead of putting a case against the '3rd party' gave me advice to put a case against the buyer and bribe police to bring the car to a safe place, like police station. My lawyer says there is no other way. I am not willing to do so as the buyer is not at fault. What to do?
Asked 2 years ago in Property Law from Tinsukia, Assam
1. If I understood you correctly, you have sold your car to the buyer but collected payment through cheque from the broker,
2. If the above is correct, then the sale is invalid. You should have collected the payment/cheque from the buyer whocm you have sold the car and not from the broker,
3. Lodge a police complaint about the buyer's taking away your car without paying and get back your car.
1) you can issue legal notice to broker whose cheque has been dishonoured on presentation .
2) if he fails to make payment file summary suit for recovery of your money .
3) also lodge complaint against broker for cheating and criminal breach of trust as he has collected money from buyer and failed to pay you
1. You can file case for recovery of your vehicle.
2. You can file case of cheating as well.
3. In any event file a case as if any unlawful incident happens through your vehicle, you would be in trouble.
As per shared details below are available options
a. File a complaint at your police station making the buyer and the broker party.
b. cheating, fraud and cheque bounce you can also mention broker is threatening you
c. also request for impounding the vehicle till the matter is sorted.
What might have happened in your case is the broker would have bought your car at a lower price and sold it to buyer at a higher price and even not paid the money to you which he would have received from the buyer - even though buyer is not at fault - But if you make the buyer a party to the case - He will pressurize the broker to pay your money. As in current scenario both buyer and broker at fault.
Hi, you can issued the legal notice to buyer as the cheque issued by the buyer is dishonoured and 15 days you have to present a complaint in the jurisdictional court under section 138 of the Negotiable Instrument Act.
1. Did you enter into an agreement with the buyer to sell the car? It was wrong on your part to take the cheque issued by the broker. The car was sold to the buyer, not the broker.
2. Your lawyer is right in advising you to file the case against the buyer and not the broker. However, the moot question herein is what proof do you have of the fact that you sold your car. If you go to court you will have to prove that you sold your car to the buyer.
3. Do not waste your time and money running to court. Seek legal opinion from a lawyer in the light of the requirement of proof stressed upon by me in the preceding para, and then plan your next move.
A. You have to file a complaint against the broker and buyer before the police station by narrating all the facts.
B. Once the cheque bounced, you have to issue the legal notice to the defaulter and thereafter lodge the complaint before the Magistrate Court.
C. Don't delay with respect to the same due to if the buyer committed any criminal activities by using your car, then you have to face all the issue till resolve the matters.
under sec 20 sale of goods act:-
the property in the goods passes to the buyer when the contract is made, and it is immaterial whether the time of payment of the price or the time of delivery of the goods, or both, is postponed.
sec 33 :- putting the goods in the possession of the buyer or of any person authorised to hold them on his behalf is deemed to be delivery of goods.
it is immaterial that at the time of delivery whole or part amount is paid. so if you have delivered your car to the buyer then it is deemed to be delivered according to contract of sale, then you are not liable to renew insurance. you must file suit in civil court for recovery of sale amount and file a criminal case under sec 138 NI Act. once cheque is duly signed it is presumed that drawer of cheque is discharging his liability.