CHEQUES BOUNCED-INSUFFICENT OF FUNDS

Querist : Anonymous (Querist) 12 September 2010 This query is : Resolved
MY CLOSE FRIEND REQUESTED FOR ADVANCEMEMT OF LOAN FOR HIS DIRE NEED AMOUNTING TO RS 12,50000\- AND ISSUED DATED 33CHEQUES OF 39000\-EACH(FOR EACH MONTH)THE LOAN WAS UNSECURED AND WITHOUT INTEREST.AND BEFORE I DEPOSITE THE FIRST CHEQUE MY FRIEND REQUESTED ME TO WAIT SOMETIME AND REQUESTED ME NOT TO DEPOSITE THE CHEQUES.I REPOSING CONFIDENCE IN HIM KEPT IN ABEYANCE 15 MONTHS AND ON ADVICE OF MY OTHER FRIEND DEPOSITED6 CHEQUES DURING ITS VALIDITY AND CONTEMPLATING TO FILE U\S138 OF NI.ACT AND ALSO WISH TO FILE U\O 37 OF CPC.AS CHEQUES ARE RETURNED WITH BANKERS ADVICE 'INSUFFIENCY OF FUNDS'PLEASE ADVISE AND IF POSSIBLE PLEASE DRAFT NOTICE AS REQUIRED UNDER THE LAW AS TEMPLATE.I SHALL BE HIGHLY GREATFULL TO YOUR PROMT AND VALUABLE ADVICES.

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Parthasarathi Loganathan (Expert) 12 September 2010
Since it is a very valid case against the drawer of cheque for wilful dishonour involving breach of mutual trust,any advocate can successfully contest on your behalf.

s.subramanian (Expert) 12 September 2010
Yes. I agree with Mr.Loganathan.

A V Vishal (Expert) 12 September 2010
MY CLOSE FRIEND REQUESTED FOR ADVANCEMEMT OF LOAN FOR HIS DIRE NEED AMOUNTING TO RS 12,50000\- AND ISSUED DATED 33CHEQUES OF 39000\-EACH(FOR EACH MONTH)THE LOAN WAS UNSECURED AND WITHOUT INTEREST.

Point 1: The total amount of the cheques issued is Rs.12,87,000/- against a loan of Rs.12,50,000/-, why was Rs.37,000/- paid in excess if you had not charged interest.

AND BEFORE I DEPOSITE THE FIRST CHEQUE MY FRIEND REQUESTED ME TO WAIT SOMETIME AND REQUESTED ME NOT TO DEPOSITE THE CHEQUES.I REPOSING CONFIDENCE IN HIM KEPT IN ABEYANCE 15 MONTHS AND ON ADVICE OF MY OTHER FRIEND DEPOSITED6 CHEQUES DURING ITS VALIDITY AND CONTEMPLATING TO FILE U\S138 OF NI.ACT AND ALSO WISH TO FILE U\O 37 OF CPC.AS CHEQUES ARE RETURNED WITH BANKERS ADVICE 'INSUFFIENCY OF FUNDS'PLEASE ADVISE

Point 2:You have mentioned that the 33 cheques were dated, then how were the 6 cheques presented after lapse of 15 months, the validity of a cheque is only 6 months. Further, you have stated that your friend requested you not to deposit the cheque, while depositing was information given to him.

Point 3: When did the cheques bounce, since u/s. 138 it is mandated that a legal notice must be sent within 30 days of receipt of information from the bank about the bounce.

Point 4: As far as the draft legal notice is concerned it is advisable to seek services of a local advocate, who can do it properly after going through the entire case details. Proper care must be taken while drafting notices.