Apni Law Staff asked 2 years ago
My family bought a plot in Dibrugarh back in 2000. The builder insisted on a blank cheque as a security deposit. Now, the construction is still ongoing, and the final cost has gone up. I asked my bank to stop the payment if the builder tried to cash it, which he did. They returned the cheque as instructed. Could this action have any legal consequences for me?
Best Answer
Apni Law Staff answered 2 years ago
Yes, your action of stopping the payment on the blank cheque could have legal consequences. In India, issuing a blank cheque is considered a valid instrument under the Negotiable Instruments Act, 1881, and stopping payment without a legitimate reason can be considered dishonor of the cheque, potentially leading to legal action by the builder.
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