Booked a flat and subsequently requested for cancellation in writing (request duly received by the company) before encashment of booking amount cheque.Booking amount cheque bounced due to stop "payment cheque request" to the bank.Legal status of the case may be guided please.
3 Answers from Attorneys
Dear Sir / Madam,
It is a bit difficult to comprehend that if you gave a current dated cheque to the Company whiile booking the flat, the Company on its part will certainly deposit your cheque into its account the same or very next day. Since you say that you cancelled the flat booking (if at all you have cancelled it that very same day that you gave the Company the cheque in writing, how could you have not taken back your booking amount cheque from the Company ? It is clearly evident from the above that you have paid a token booking amount by cheque to the Company, which is liable to be forfeited, if the booking is cancelled. Since the cheque has bounced, the Company has the legal right to file a legal case under Section 138 of the Negotiable Instruments Act for cheque bouncing on you.
The contract will not come in to existence, as no consideration passed, and no rights were created in favor of either party.
No debt has become payable or was payable, hence Sec. 138 shall not be attracted.
Status of case need to be checked in concerned court.