One Criminal case is filed against one of my friend under section 138 of Negotiable Instruments Act for recovery of balance loan amount.
In nutshell, the story is that he has purchased a 4-wheeler by taking finance from the co-operative bank.
For a period of around 2-years out of term of 3-years, he repaid the installment of the bank loan properly, but due to some reasons, could not pay the balance amount of installment to the banker.
In the meantime, the bank has ceased the vehicle and re-sold the said vehicle to a prospective buyer. As per calculation of the Accused, by utilizing the payment made for initial 2-years + the resale value of the vehicle, it is more then sufficient to meet the obligations of the loan taken from the co-operative bank.
Accused have no ceasing letter of the financer. After one year, the co-operative bank has filld a random amount in the cheque, presented the said before the Banker, as expected it was bounced and by operating procedure of law, it has filed the criminal complaint under section 138 of NI.Act for recovery of the bank loan stating that Accused has issued the said cheque for discharge of loan liability. Actually he has given blank 10-cheques to the banker at the time of disbursement of vehicle finance loan which has been mis-used by the banker.
What stand should we take now. The case is pending before the JMFC. Court as a Summary Trial.