Civil suit on a dishonoured cheque - advice/supporting cases
Ramesh
(Querist) 09 August 2017
This query is : Resolved
Party A takes a loan on a house property from Party B and gives a GPA on the property, 2 Pro notes, and 5 signed cheques without date and amount filled in them. 3 of the 5 cheques are used by Party B to draw the interest on the loan. When the loan is repaid, Party B returns the GPA and the 2 Pronotes but retains the 2 cheques on the pretext that they have been used/damaged/misplaced.
After 2.5 years, Party B fills up one of the cheques for Rs 4 lakhs amount (& date) and files a civil suit stating that a Loan was given to Party A 2 years ago on the basis of the PDC (No Loan agreement or Pronote) and the cheque was dishonored for lack of funds and seeking Attachment before judgement on the house property. Party A was shocked to learn about this when a court notice was served.
What should be Party A's course of action be. Please advice. Also suggest good support judgements that Party A can use in defence.
Rajendra K Goyal
(Expert) 09 August 2017
Repeated query:
http://www.lawyersclubindia.com/experts/Civil-suit-on-a-dishonoured-cheque-advice-supporting-cases-650686.asp
