Legal Question in Banking Law in India

I issued a advance cheque with pwork order to one of a photographer to cover one of my event but he came late after half of the prog was over & couldnot cover the 1st half which includes the innaugration also moreover ha has not covered the stalls of sponsorers . I stop payment his cheque. Now ha has sent me a notice what should i do


Asked on 1/20/16, 4:42 am

2 Answers from Attorneys
Dr Katta Venkata Rama Krishna Drkattavrk

1) Explanation of the expression �debt or other liability� in Section 138 of the said Act, means a legally enforceable debt or other liability.

2) Sine he performed his part of contractual obligation may be not to ur satisfaction, still a debt has already subsisted. The provisions of Sec.138 of NI Act as decided in MAHENDER S. DADIA VS. STATE OF MAHARASHTRA for Stop Payment are applicable. Hence liable.

3) In case, the performance of the artist is not as agreed upon, u have a recourse to recover the cost for the unperformed part of his obligation and settle the transaction by discussing with the service provider.

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Answered on 1/20/16, 5:28 am
Fca Prashant Chavan Expert Edge LLP

20.01.2016

Dear Sir / Madam,

You should immediately reply to the notice bringing forth and citing each specific violations in the terms and conditions between you and the photographer as contained and mentioned in the pwork order, so as to justify your reason(s) for stopping payment of the cheque. In case you have been penalized by any other third party for non-performance and incurred any financial loss thereon, you may also cite this loss in your reply to the notice.

Regards,

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Answered on 1/20/16, 7:01 am


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