I paid a property developer in India a sum of money for a plot but due to unforeseen circumstances, I decided not to purchase it and requested a refund. The developer returned a portion in cash and the remaining ₹1,10,000 through two checks of ₹55,000 each. Dated June 29, 2015, he marked one check for withdrawal on August 5th and the other on August 10th, 2016. After two bounces, the first check cleared but the second bounced three times due to insufficient funds. The developer assured me of prompt payment but I haven’t received the remaining ₹55,000.

Apni Law
Apni Law
Law Forum › Category: Cheque Bounce › I paid a property developer in India a sum of money for a plot but due to unforeseen circumstances, I decided not to purchase it and requested a refund. The developer returned a portion in cash and the remaining ₹1,10,000 through two checks of ₹55,000 each. Dated June 29, 2015, he marked one check for withdrawal on August 5th and the other on August 10th, 2016. After two bounces, the first check cleared but the second bounced three times due to insufficient funds. The developer assured me of prompt payment but I haven’t received the remaining ₹55,000.
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Apni Law Staff asked 8 months ago

I paid a property developer in India a sum of money for a plot but due to unforeseen circumstances, I decided not to purchase it and requested a refund. The developer returned a portion in cash and the remaining ₹1,10,000 through two checks of ₹55,000 each. Dated June 29, 2015, he marked one check for withdrawal on August 5th and the other on August 10th, 2016. After two bounces, the first check cleared but the second bounced three times due to insufficient funds. The developer assured me of prompt payment but I haven’t received the remaining ₹55,000.

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Best Answer

Apni Law Staff answered 8 months ago

Under Indian law, the developer is legally obligated to repay the remaining ₹55,000. The bouncing of the check, despite assurances, constitutes a breach of contract and makes the developer liable for the amount, along with potential penalties for dishonoring a cheque under Section 138 of the Negotiable Instruments Act. You can file a legal complaint to recover the amount.

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