Hi all need advice urgently,
I accepted an appointment letter from x school as teacher.. they asked me for post dated cheque since I had my original doc's with college and to give the appointment letter they needed security in form of cheque... but due to personal reasons I'm am not joining the school and given notice well before the joining date and requested the cheque back .... But school is now threatening to submit the cheque to bank and charge me ₹30k and file a legal case if the cheque gets dishonored.... I have not started the job yet it was supposed to start next month on 15th May... I am very worried on what to do please advise if I can cancel the cheque or what other recourse i have as the board member of the school keeps calling and threatening me that he will sue me for cheque bounce case if I don't pay up....

From India, Bengaluru
Seasoned Ir Professional
Partner - Risk Management
Sr.manager - Hr&admin
Retired Government Servant/advocate
Insolvency N Gst Professional



Security cheques were collected by the school as a (security if you leave them without notice after joining them- to safeguard their intrest). You had just accepted the appointment order but didn't joined them so primarily there is no Employee -Employer relationship between you and the School and hence there is no breach of any agreed terms and conditions. In the absence of the same School Management have no legal rights to deposit the cheques with their Bank.

On the safer hand you may issue stop payment advise for those cheques to your Bank( if not done already). Also it is strange to observe why you had issued cheques to the School before joining them.

What were the terms and conditions of the Appointment order you signed? Also did they took any signature in any declaration or white paper along with the cheques? Please exercise utmost caution before issuing cheques without knowing the consequences.

It looks like more of threating tactics. As there is no question of any loss to the School Management because of your refusal to join them they cannot justify recovery of money from your end. Be firm and face them.

From India, Madras
Thank you for your response i greatly appreciate it.... The reason we gave the cheque was for school saying that since we could not give our original doc's like marksheet and degree certificates they needed to safeguard their interest... But we informed them that we are not joining a month in advance but they are not ready to listen they say that since we are not joining they are under loss as now they don't have a teacher... We told them that since we are not joining the terms will not stand but they are saying that cheque bounce is a criminal offence and they would have their legal team pursue this... We are not that financially sound to pursue a court case and surely not arrested so we seek advice on how to proceed
From India, Bengaluru

Relationship of employer-employee has not commenced.
To my understanding-Any Cheques which are issued to discharge an existing liability are only covered under Section 138 of the NIA. NO liability has been incurred by you.
You had already declined to join due to whatever reasons.
Even retention of original documents like Degree certificate are all irregular techniques followed by many employers.
Just write to the school to return your cheque.If they decline, send stop payment to the Bank concerned.

From India, Pune

Even if the cheque is presented and dishonored, the school cannot take any legal action (138 of Negotiable Instruments Act) because they they proceed legally, the school will have to say in the court (criminal) how did they get the cheque. A cheque is a negotiable instrument and as such it is issued to a payee only when there is a consideration. If the school has done some work, sold some article, rendered some service to you (the candidate who has not even become an employee, per se) they can submit to the court that this cheque was issued to them as a consideration for the same. Here there is no consideration. The school cannot say that they have collected it as a security cheque because that is illegal. At the same time, a candidate or an employee can very well say that I was asked to issue a cheque and for getting a job I did it, but later on I realised that this is not the institution where I should join as a teacher. Will an institution / school which is considered as a temple of knowledge or an organisation of noble profession threaten an employee like this? Is that a good place to work Not at all. Therefore, let the school take whatever steps they want. You can also approach the Education Officer in this regard.
From India, Kannur

Is it a post dated or undated, signed but blank cheque?

The legal position is that, in case of dishonour of the cheque, the payee can proceed against the drawee under the provisions of Section 138 of the Negotiable Instruments Act if the cheque had been issued in discharge of a legally enforceable debt.

In the instant case, there has been no such debt or liability. Hence, you may instruct the Bank to stop payment and simultaneously issue Notice (preferably, through an Advocate) to the school detailing the circumstances under which the post dated or undated cheque has been issued and because of the changed circumstances, stop-payment instruction has been issued to the Bank.

Pre-emptive action, as above, would ensure that the matter would not reach the Court.

From India, Kochi

In addition to the above, you should file an FIR against he school for harassment, and specifically add the names of the persons who have called you and threatened you
From India, Mumbai

"In addition to the above, you should file an FIR against he school for harassment, and specifically add the names of the persons who have called you and threatened you"

Learned member has given a correct suggestion. Many employees do irregular acts because organisation has told them to ring up and threaten.
Security cheques.original degrees etc are not to be taken by would be employers and locked up.They can call for original and verify the same and return it.

From India, Pune

Dear Sharath R,
There is nothing to worry, the post dated cheque can not be presented well before the date mentioned in cheque for encashment.
Further, as per the rule you can issue a "Stop Payment Notice" to your bank for stop payment, which is very much within your reach and do it immediately.
The school can not move legally against you or can demand damages. Here, the Cheque is nothing but a guarentee but not a bond money. In one condition school can claim where there is a condition that if the person doesn't work for a specific period.ou do
All the above suggestions are as per the information provided in the post.

From India, Mumbai

It is quite illegal first of all to take possession of employees" original certificates under a selfish pretext. You have informed them prior about your decision of not joining them. There is no employer-employee or any other business/personal relationship between you and the school. Foremost is that you issue a cheque Stop payment instruction to your bank , very carefully quoting your cheque number, payee details (School name) date etc., By doing so, you are absolved of any repercussions arising out of the cheque dishonour or cheque bounce, whatever name, the school uses to threaten. And after instructing your bank, please just IGNORE about the issue.
From India, New Delhi

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