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UTake 2 minutes, read this, and help us with practical advice on legal steps, negotiation tactics, or any other avenues we might pursue.
About 10 months ago, a friend of my dad called him multiple times to buy a shop from a guy named Suraj, who is his friend, in the Mumbai suburbs. Despite knowing little about Suraj—aside from having seen him around for years—we thought it was a good opportunity.
We ended up paying a total of 15 lakhs as an initial payment on a 40 lakh deal:
* **5 lakhs** via direct bank transfer
* **10 lakhs** withdrawn from the bank and given to himLater, we learned that the shop was actually with the bank and was about to be seized. When we confronted Suraj, he claimed that the money was meant to retrieve the shop from the bank. But soon after, the bank sold the property to someone else via auction.
Now, after 10 months, Suraj has only returned **7 lakhs**. Initially, he promised to pay back **2 lakhs per month** and even gave us a bearer cheque (with no date) stating he’d call us when we could deposit it. This worked for about a month, then he switched to making online transfers—**1 lakh** for some months, then **50 thousand,** and for the past two months, nothing at all.
We’ve consulted one lawyer who suggested sending him a notice, though I’m skeptical it will make a real impact. My dad’s friend (who originally urged the deal) has now backed out, saying he tried his best but couldn’t help.
We do have blank cheques and a handwritten, signed letter from Suraj acknowledging receipt of the money.
Has anyone been through something similar or have any practical advice on legal steps, negotiation tactics, or any other avenues we might pursue? Any suggestions or shared experiences would be incredibly helpful.
Thanks in advance for taking a couple of minutes to help out!
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HSince you have a blank cheque given as security by the seller, you have two ways to proceed –
1. Fill the balance amount on the cheque and deposit it. If it is dishonoured, then go for cheque bounce case under S.138 of Negotiable Instruments Act.
2. File a civil suit for recovery of balance amount.
You can also go for both at the same time. Legal Notice will be the first step in both these options so there is no avoiding that step.
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UThanks for your reply. He says he doesn’t have any money now and has lost it all. I’ve often read that lawyers, in many cases, just try to stretch things out to fill their pockets and keep the process going for as long as possible with no output.
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HHe may not have money now but that does not mean that he won’t have it in future. Even if you take legal action it is not like you will obtain order tomorrow itself. The process takes time. But if you don’t take any legal steps your right to recover the amount legally will lapse after 3 years from date of default.
There are many reasons for delay in court proceedings, including huge pendency, requirement to give fair opportunity to other side (they will try to delay as much as possible), judges taking leave, court being busy with more important cases etc. Also, while there are a few lawyers who unnecessarily prolong cases, this is not the main reason for delay in court proceedings and there are ways to ensure that your lawyer does not do it. Since your claim amount will not be very high, find a lawyer who will do your case for a lump-sum amount and not per-date basis, and divide the payments based on milestones. This will ensure that the lawyer does not stall your case.
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HWhile in my earlier comment I have said that you can take both civil and criminal route for recovery, it is best to avoid multiple proceedings since your claim amount would be low. I would recommend you go cheque bounce route i.e. S.138 Complaint. This is filed before Magistrate Court having jurisdiction over the area where your Bank home branch is located (where you have account). You will have to look for some local lawyer who practices there. You can go visit the court room dealing with cheque bounce cases for seeing how the court works and can also identify a decent lawyer who practices in that court. Ask clerks working there for advice. Don’t go for High Court lawyers or more expensive ones as amount involved is not high and they will not prioritize your case.
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