Dishonour of cheques reg.
K.P.Nataraj
(Querist) 16 July 2013
This query is : Resolved
Respected Sir/Madam,
Without my knowledge, my wife has taken a number of loans from her brother (cousin). He has collected number of Cheques. Promissory Notes and Stamp papers ( all blank). She gave them to her brother as Security only on good faith that her brother will not misuse the same.
He used to charge exorbitant interest from her. She has take a loan of Rs. 8 lakhs totally (400000 + 200000 + 100000 + 100000 on different dates) and she paid an interest of nearly 10 lakhs in a span of 1 year.
But few days back she received legal notice from her brother saying that she has given a cheque of Rs.11 lakhs which was dishonoured from the bank and he will file a suit u/s138 unless the amount is settled within 15 days.
We are ready to settle the amount she took with reasonable interest.
But he threatens us to settle for Rs.11 lakhs. And if we wont settle , he will present further cheques in coming days.
In this situation, please advise me and what if he present the other cheques.
Kindly advice.
ajay sethi
(Expert) 16 July 2013
are the parents still alive ? rather than litigating the issue in court better resolve the matter within the family . take the help of family elders .
reply to legal notice .sate that full payment has been made . mention details when payment was made by cheque
K.P.Nataraj
(Querist) 16 July 2013
Respected Ajay sethi sir and Dr. Jyothi viswanath sir. First I thank u very much for ur reply.
We have tried our maximum to settle the matter with the help of our parents and elders. But her brother is very adamant that he will not settle for less than 10 lakhs which is very big amount and irrelevant to the actual due. We have already settled the Principal and reasonable interest. Now we are not in a positiion to pay that huge amount. Everything the receipt and payment was made in Cash.
We are forced to fight the case legally.
We will reply to his legal notice.
My question is what happens if he presents the other cheques which he threatens to present by filling up the blank cheques. what kind of action we need to take in this situation? Kindly explain
Dr. Jyothi Vishwanath
(Expert) 16 July 2013
Now since post dated cheques are already issued,if the brother presents it in the bank and they are dishonoured, cheque bouncing case can be filed against you.
If there is no record of having given cheque to him, file a police complaint that the cheques ranging from so and so number are lost. This can be done only subject to what are the detail facts of your case. Your local advocate can better tell.
