Civil suit on a dishonoured cheque - advice/supporting cases

Ramesh (Querist) 09 August 2017 This query is : Resolved
Party A takes a loan on a house property from Party B and gives a GPA on the property, 2 Pro notes, and 5 signed cheques without date and amount filled in them. 3 of the 5 cheques are used by Party B to draw the interest on the loan. When the loan is repaid, Party B returns the GPA and the 2 Pronotes but retains the 2 cheques on the pretext that they have been used/damaged/misplaced.
After 2.5 years, Party B fills up one of the cheques for Rs 4 lakhs amount (& date) and files a civil suit stating that a Loan was given to Party A 2 years ago on the basis of the PDC (No Loan agreement or Pronote) and the cheque was dishonored for lack of funds and seeking Attachment before judgement on the house property. Party A was shocked to learn about this when a court notice was served.
What should be Party A's course of action be. Please advice. Also suggest good support judgements that Party A can use in defence.

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Rajendra K Goyal (Expert) 09 August 2017
How are you concerned?

A has issued cheques and the same has been dishonored. It seems A has not taken fate of old cheques.

A should try to have amicable settlement with B.

If not possible, no other alternate left but to defend the case against him.

Rajendra K Goyal (Expert) 09 August 2017
Repeated at:

http://www.lawyersclubindia.com/experts/Civil-suit-on-a-dishonoured-cheque-advice-supporting-cases-650696.asp

R.K Nanda (Expert) 09 August 2017
no reply to repeated query.

Ramesh (Querist) 09 August 2017
Thank you Mr. Rajendra Goyal. I am Party A's brother.
As per NI Act there is no proof for legally recoverable debt and Party B will not be able to substantiate the false claim. But i am not sure what happens in this case as it has been filed as a civil suit. Any inputs on this will be helpful.

Guest (Expert) 15 August 2017
You have the need to take help from some local lawyer to fight the case.

If case is fought on merits of the case, there becomes no need for any supporting case.

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