A couple of years back my client has given blank cheque to a finance company through builder of flats towards security for loan money drawn by the builder against 'subvention plan' scheme wherein the builder draws the amount on behalf of the allottee and the allottee pays EMI only after he gets the possession.
Now the builder has made no progress in construction but has withdrawn substantial amount from the finance company. Further, the builder is not paying the EMI against the money drawn by it from the finance company.
The allottee is in Delhi and the builder as well as the finance company have their offices in Delhi but the finance company's Registered Office is in Mumbai.
Now having the cheque dishonoured from the bank of my client, it seems the financing company may file a suit in Mumbai u/s 138 NIA for dishonour of cheque which was otherwise given as security only.
Please advise provisions or steps that can be taken to stop the finance company from filing a suit in Mumbai?
Thanks for your help in advance.
