Legal Question in Banking Law in India

Cheque bouncing

My friend took a token of rs 350,000 by cheque for sale of his flat & the buyer told that remaning money he shall arrange by loan.

For 2 months buyer did not arrange loan & requested my friend to return the money . My friend gave a cheque which got bounced & buyer flied a police complaint & now he says to return money within 5 days other wise he will go to the court.

Can you tell me what should my buyer do. My friend cannot pay back money in one go & can pay in installament.

Pls advise .

Regards


Asked on 6/02/07, 10:22 am

3 Answers from Attorneys

Re: Cheque bouncing

you have put axe in the hand of buyer.He can file complaint u/s.138 N.I.Act,Recovery suit and other legal proceedings. For any other query/assistance call on my mobile.

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Answered on 6/02/07, 12:06 pm
Vivek Mapara Mapara Law Firm

Re: Cheque bouncing

Sir,

First mistake was to return the amount back. Your seller could have forfit the money for default on part of buyer.

Any ways this is not a case of police intervention, so do not worry about the same. Try to negotiate the situation with buyer, if he could accept the money in part.

If he does not submit, and prefers to go for NI 138, then do fight out the case.

One more thing, was there any written agreement between the buyer and seller, mind this is very much important.

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Answered on 6/02/07, 8:29 pm
G. M. Gupta gmguptaandassociates

Re: Cheque bouncing

if you have contracted for sale of flat and took the token money as BAYANA, then you need not to pay it back

otherwise if you dont have anything to prove even then you can contest the case and in any case you can pay the money in installments.

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Answered on 6/03/07, 2:39 pm


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