Legal Question in Banking Law in India

We purchased a land in Bilaspur(cg).For this deal, we had word of mouth agreement with broker to pay 1% broker fee (35,000 ru).

To pay this, we gave him cheque of 75000 ru which consist of

A. broker fee 35000

B. Security deposit of 40,000 if by any reason this land deal gets canceled from our side.

It was a post dated cheque. Land deal went well, so we cancelled the cheque (bcoz it was having 40000 of deposit component)

We were still ready to pay 35000 as brokrage but Agent is saying he needs 75000 & this whole amount is his commission.

This entire brokrage deal is not documented or having no written agreement.

Broker has filed a case against us under NI 138 act.

Can we consider this whole transaction as Unlawful, or no legal obligation?? So that the case itself gets dismiss.

Plz help.


Asked on 6/11/16, 12:37 pm

2 Answers from Attorneys
Fca Prashant Chavan Expert Edge LLP

12.06.2016

Dear Sir / Madam,

No, the transaction is not unlawful., The onus remains on you to prove with documentary evidence to substantiate that the Rs. 40,000/- (Rupees Forty Thousand Only) you paid the broker is towards Security Deposit. If the land deal went through, you ought to have instructed the broker to pay the Security Deposit amount instead of cancelling the cheque, since you claim to have given it to the broker.

Regards,

Read more
Answered on 6/11/16, 6:47 pm
Dr Katta Venkata Rama Krishna Drkattavrk

1) Its not valid if u can to prove the cheque is backed by valid consideration for the full amount.

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Answered on 6/11/16, 9:56 pm


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