Bill-of exchange summary suit

Querist : Anonymous (Querist) 18 August 2011 This query is : Resolved
Seven years back I had availed of a personal loan of Rs.10,000 from a pvt. marwadi financer . In the due course of time i have paid him all the interest @6 Per month .

In between for some days I could not pay the interest amount. so under duress he made me sign a bill of exchange of Rs.400000 some 3 yrs back .

Now the pvt money lender has filed a summary suite in mumbai high court where in he has made one more unknown Person as a defendant with me for Rs.200000 .
The said erson has been filing 20-30 summary suites in Mumbai court every year .

He has deceitfully stated that I have paid him back Rs.200000 in cash hence i am liable to ay Rs.200000

My question is merely signing a bill of exchange makes me liable to pay him the amount ?

is the court not supposed to ask him that how did he pay me Rs.400000 in cash ?

According to money lenders act every lender
is supposed to provide a yearly statement to the borrower can i bring this face before the court ?

Will the court not ask him the proof of payment ?

Sine the second dfendant is unknown to me can i bring this fact before the court ?

regards

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Raj Kumar Makkad (Expert) 18 August 2011
You can bring every point before Court but one can also ask you why did you sign bill of exchange of Rs. 4 lakh when your original loan amount was merely of Rupees ten thousand. Why did you sign and if it was under duress then why didn't you raise this issue with police or other institutes or court during this long period of 3 yers?

Querist : Anonymous (Querist) 19 August 2011
Thank you very much for replying . Yes i did try but police refused to take the cognizence saying its a civil matter .

Does merely signing the bill of exchange with out consideration makes me liable ?

One more fact is his lawyer had sent me a demand notice on 27th may 2008 regarding another matter in which i had stood as a guarantor to a friend of mine .

and the bill of exchange in my case Pertains to 3rdMay 2008 .

How can a lender lends me a sum of rs. 400000 when he sends me a demand notice of rs,25000 for some other bill of exchange ?

Kindly help as i have already crossed the statutory 10 days limit for filing the vakalatnama .

regards

R.Ramachandran (Expert) 19 August 2011
Dear Anonymous,
You know the complete facts yourself.
From your postings, I am sure you are not a babe in the woods and could be made to sign any Bill of Exchange under duress. Even if you had signed one under duress, again you are not so gullible to stay quiet if your complaint was not entertained by the Police. Therefore, these arguments won't gel.
It is too late in the day to question why the lender would lend you Rs. 4 lakhs on 3.5.2008 when he sends a notice for another amount on 27.5.2008.
It seems that you are having a number of transactions with the lender - either in the capacity of a borrower or in the capacity of a gurarntor etc.
Therefore the lender is free to treat each of the transactions independently. He is perfectly ok to give you money on 3.5.2008, and in another case on not getting his money to issue a notice to you on 27.5.2008. What is wrong with that.

As a defendant, you have every right to put forth your points and raise a possible disbute about the money transaction. If the court is convinced of your defence, you will be granted the leave to defend or else it will order you to pay.

prabhakar singh (Expert) 19 August 2011
Experts have rightly judged you as well as your query.

Querist : Anonymous (Querist) 19 August 2011
Thank you for u r replies. Yes i am definately not a babe in the woods . I have only one transaction as a guarantor with the moneylender apart from one disputed transaction.

Again there was a typo a demand notice was sent to me on 27.4.2008 and another loan agianst the BOE was made on 03.05.2008 . ( sorry for the lapse)

the usual Practise is to lend money at @ 10% per month and sign a BOE of 4 times the principle amount and police in the juridiction are hand in glove

Thank you again for critically examining my case .

is money lenders act applicable in this scenario ?
is it mandatory BOE to have lender's address ?

Thank you again

Bill-of exchange summary suit

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