Illegally cheques retained.

SHREY DAMBHARE (Querist) 24 August 2016 This query is : Resolved
I am having one client whose cheques were retained by one person. However, my client took loan from him and repaid entire loan amount with interest and I have bank entries of repayment of loan. but the opposite party retained the cheques which was issued to him as security. Now, I have sent him legal notice to return those cheques. But what remedies my client has after sending notice.

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Guest (Expert) 24 August 2016
What concern you have with the case of your client and loan by him from a third party (not you)?

adv.bharat @ PUNE (Expert) 24 August 2016
Author need to explain query raised by expert to get solution for the problem.

Isaac Gabriel (Expert) 25 August 2016
Better advise the banker 'Stop Payment'of those cheques with the loanee, if you reapid the entire loan obtained as per the terms.

Sudhir Kumar, Advocate (Expert) 25 August 2016
your client has refunded loan as you said.

So you read NI Act and the difference between "holder" and holder in due course" of a cheque.

Kumar Doab (Expert) 25 August 2016
If entire loan with interest is paid then full and final statement showing NIL balanced, NOC is desirable.

Subsequent to it all cheques should be returned.

SHREY DAMBHARE (Querist) 25 August 2016
Thank you Sudhir Kumar Sir, I have gone through your suggestion. I just want to ask can I file suit to recover the possession of those cheques.

SHREY DAMBHARE (Querist) 25 August 2016
With due respect to other experts and seniors. I am asking solution that what should debtor do if his cheques which was given by him to creditor as security at the time of taking debt were retained by creditor even after repayment of loan.

Guest (Expert) 25 August 2016
Is there any hitch in replying my question, as to what concern you have with the this case, not being yours?

P. Venu (Expert) 25 August 2016
The solution is simple:you can send 'stop payment' instruction to the bank under intimation to the person concerned informing him that the said instructions have been issued as the entire loan has been cleared.

Rajendra K Goyal (Expert) 26 August 2016
Get the cheques payment stopped by the Bank.

Send registered notice to the person, not to present the cheques which he has not returned as he has no authority to do so.