friendly loan

Reena Jaggi (Querist) 01 October 2015 This query is : Resolved
Respected Sir,

If someone has given a loan to his friend in cash and only have some signed blank cheque with him as proof is there any way to recover..no bond was signed..nothing was done..also pls.let me know any transaction over Rs.20,000 has to be with cheque only

thanks

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SAINATH DEVALLA (Expert) 01 October 2015
What is the loan amount? Have U taken the cheque only or a promissory note too?
According to section 40 a(3)a of IT Act,any transaction over 20000/- should be done either through a cheque or DD.

Sudhir Kumar, Advocate (Expert) 01 October 2015
OK. Understand truth of life. Friendly loans are not intended to be refunded when taken and the giver may be expecting refund.

You have no proof that the signatory of cheque is your debtor.

Now you fill the amount and date in the cheque and present it in bank. It will bounce due to lack of funds or due to signature mismatch.

Then someone will advise you to file case us 138 of NI Act. You will do and the defendent will say that the cheque is stolen and signature forged by you.

SAINATH DEVALLA (Expert) 01 October 2015
Paying heed to the suggestion of Adv Sudhirji, go for a compromise settlement.

Rajendra K Goyal (Expert) 01 October 2015
Present the cheque after filling the particulars, issue notice and file complaint u/s 138 NI Act. You have to prove your loan.

Can also file recovery suit if you are in a position to prove your debt.

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