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Cheque bouns

(Querist) 21 July 2018 This query is : Resolved 
Sir I given amount Rs 32 lakh to my friend by cheque and made MOU at same time.he given cheque but cheque bouns due to insufficient funds.i sent advocates notice Now I want advice for best case .
Sudhir Kumar, Advocate (Expert) 22 July 2018
if 15 days have not lapsed then you can give notice of cheque bounce and thereafter if he does not pay then you can file criminal case u/s 138 NI Act.

if this period has lapsed you can present the cheque again.

in any case you can file case of cheating and can also file civil suit for recovery based on what is written in MOU.
Sudhir Kumar, Advocate (Expert) 22 July 2018
Money given to friends and relatives is always a charity in the garb of loan which is given in expectation of refund but always taken with intention of non-refund.

Such loan is taken by a person:-

(i) Who lacks business sense and cannot raise funds out of his own business and suddenly wants to be rich.

(ii) who cannot raise bank loan because :-

Either
he himself is not creditworthy

Or
the purpose for which he seeks loan is illegal

or
the purpose for which he seeks loan is not at all commercially viable.

(iii) Who knows he can afford not to refund.
(iv) Who trusts his thick skin
(v) Who intends not to refund
(vi) Who has made fortification against action of refund.

So he has to find someone who can part with his money. So he finds a lender near him (friend or relative)

Such loans are given by the persons :-

(i) Who has surplus money.
(ii) Who displays and boasts of such surplus money.
(iii) Who stupidly believe that there will be a refund.
(iv) Fails to realise as to why he alone (not bank) is being contacted for loan.
(v) Who has extreme trust on the debtor
(vi) who are either stupid or extremely greedy of the unusual (or illegal) rate of interest.


Such loans are always given

(i) Without documentation.
(ii) Without witness
(iii) Without guarantor.
(iv) During cordial relations

Soon after giving such loan :-

(a) Relations are no more remain cordial
(b) Business started by such money (easy money belonging to other) invariably fails.
(c) Such loans always sink and not refunded.
(d) Person seeking such refund suffers at legal process.
(e) Person seeking such refund legally or by persuasion is socially criticised.

Guest (Expert) 22 July 2018
Yours does not seem to be a real life problem. Had that been there, the case being of the amount 32 lakhs, you could have rushed to some lawyer for legal recourse, rather than posting your query for free casual type of solutions to the academic type of query.

However, if there is any truth in your story, quite simple, file a summary suit, if you want mere recovery of the amount. Otherwise, you can file criminal case for his arrest, but in that event forget about recovery of your amount, as your friend would prefer to serve a jail term, rather than paying you Rs. 32 Lakhs. He would be happy to utilise the amount of bounced cheque, as like bonus from you.
H. S. Thukral (Expert) 22 July 2018
Mr Dhingra sorry for contradicting:
Compensation awarded to the complainant in the judgment shall be still recoverable even the accused is further incarcerated for default in payment of fine
Guest (Expert) 22 July 2018
Dear Shri Thukral,

I have not discussed on the contents of the writ petition or the relief to be sought from the court. A general query has been replied in a general way according to the casual nature of the query, whereas a case pertaining to recovery of loan of 32 lakhs, discussed in a casual way by the querist, cannot be taken as a real life problem. That I have already pointed out in my reply.

If the querist really faces any such problem, he can be advised to discuss the issue at length with some local well experienced lawyer by showing all the case related documents. The issue of compensation has to be looked after by his own lawyer and the competent court, not by any of the experts at the LCI.

I hope I am right in clarifying my point.
H. S. Thukral (Expert) 22 July 2018
Sorry Mr. Dhingra, I did not intend to undermine you rather I wanted to share knowledge with you.
A question whether compensation should be still payable the accused suffer further sentence of imprisonment in case of default of fine arose in the case of Kumaran v state of Kerala and was decided by SC.
I also learn in the process whenI attempt to answer any question of interest. Regards
Guest (Expert) 22 July 2018
Dear Shri Thukral,

No issue for me, as I don't feel my position to have been undermined. Everyone is free to express his opinion in an open forum.

So far as the issue of compensation is concerned that all depends upon whether the litigant wants to file a civil or criminal case and claim for what sort of compensation he prefers to put forward before the court of law for consideration. Even in summary trial cases, compensation in the shape of appropriate interest rate cannot be denied to the claimed.
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