Dishonor of cheque for which the liability is cleared by other payment mode

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    • #5774

      In 2016, I wrote an undated cheque for Rs.8400 for future payment (2018) towards maintenance of my property. When the payment became due in 2018, I paid via NEFT and asked the developer to return my cheque, but they didn’t. I eventually put a stop-payment instruction to my bank to prevent misuse. In August 2020, the developer, without communicating with me, drew the cheque and same was returned unpaid by my bank citing technical reasons. The developer’s legal team has threatened to follow legal proceedings against me unless I pay the amount equal to the cheque in 48 hours. The legal team, through an email, have claimed that I handed over the cheque dated 5th July 2020 against the pending arrears of maintenance which is untrue. Can you please guide me regarding the validity of legal threats from the developer and if they do so, what should be my best course of action?

    • #5801

      Since you issued an undated cheque, it may be difficult for you to show that this cheque was issued for a specific liability of 2018 for which you have already paid by NEFT transfer. If you have written / recorded communications showing that the cheque was issued for a particular liability which has already been paid for, it may be of help.

      As it appears, the developer is trying to show that you had issued this cheque for your unpaid maintenance charges, including those of 2020. You’ll have to refute such allegation by adducing evidence to the contrary.

      This is the problem that arises with undated cheques. They can be used / misused for subsequent / future liabilities. One should bring it on record, at least to show that the cheque is being issued only for a specific purpose and for none else.

      This is what is my tentative advice on the basis of limited facts known to me. If needed, you may consult some local lawyer with detailed facts. Else, as the amount if not very big, and if you actually have unpaid maintenance charges to be paid to the developer, pay the amount of the cheque to settle the issue, instead of getting into unnecessary legal complications wasting your time, money and energy.

           


      Dr. Ashok Dhamija is a New Delhi based Supreme Court Advocate and author of law books. Read more about him by clicking here. List of his Forum Replies. List of his other articles. List of his Quora Answers. List of his YouTube Videos.

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