Stop payment of cheque prior to encashment

I bought a property in 2000 in Dibrugarh. My builder insisted on given him a cheque without a date as a caution amount. The property is yet under construction and the total price of the property has exceeded the amount.

I thus ended up asking the bank to stop the payment if the builder tries to encash it which the builder tried to do. The bank returned the cheque as per the instructions given from my side. Can this have any legal implication against me?

Answers (1)

411 votes
As the cheque was dishonored on grounds of stop payment, you would fall under the ambit cheque bounce that comes under criminal prosecution.

The builder can thus file a case under section 138 against which you can defend yourself in the court.

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