Dishonour of cheques reg.

K.P.Nataraj (Querist) 15 July 2013 This query is : Resolved
Dear sir/Madam,

Without my knowledge, my wife has taken a number of loans from her brother (cousin). He has collected number of cheques, Promissory Notes, Stamp papers (all blank). She gave them to her brother as Security only on good faith that her brother will not misuse the same.

He used to charge exorbitant interest from her. She has taken a loan of Rs.8 lakhs (400000 + 200000 + 100000 + 100000 on different dates) and paid an interest of nearly Rs. 10 lakhs witin a span of 1.5 years.

But few days back she received a legal notice from her brother stating that she has taken a loan of Rs.11 lakhs and towards repayment of the same she issued a cheque for Rs.11 lakhs which was dishonoured from the bank and he will file a suit u/s138 unless the amount is settled within 15 days.

We are ready to settle the amount she took with reasonable interest.

But he threatens us to settle for Rs.11 lakhs. And if we wont settle he will present further cheques in coming days.

In this situation, please advise me and what happen if he present the other cheques .

Kindly advise.

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