Does anyone know if it is legal to stop payment on booking amount paid to builder ? No agreement or any other document has been signed till now.
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  • Technically yes, there is nothing illegal about it as long as there is no evidence of a contract - even oral contract or email correspondence can be accepted as a "contract" in the court of law.

    Worst case, the builder can file a check bouncing case under the Negotiable Instruments Act to cause "trouble" - but in my view that is very unlikely for a reputable builder to do.
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  • Come to think of it, builder can't even file a criminal case under the Negotiable Instruments Act as, as far as I know, that is applicable only if check bounces due to "insufficient funds".

    So, builders only remedy is likely to be to go to court and claim there was a contract and try to enforce it - again very unlikely that any builder will go through all the trouble...
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  • "Stop Payment" is different from insufficient funds etc causing check bounce...here the payer has second thoughts and wants to re-consider the deal for whastover personl reasons - nothing illegal abt that!!

    to se on safe side speak to ur bank on legal implications...
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