Hi,
We gave a franchisee of our store to someone and he deposited 50L with us as security to get merchendise worth 25L to sell. A cheque was given to him for 50L which was to be used only when the contract would end. He was also getting 1L interest on the security every month from us. Our contract with him for the franchise was expiring and he wanted to renew it but since the location we were renting was no longer available so he decided not to renew it. After the contract expired, he went and tried to encash the cheque but due to insufficient funds in our account, the cheque bounced. We tried to speak to him and ask for time to return his money but instead he filed a cheque bouncing case on us. Firstly since this is a security will Sec 138 be applicable in this case. Also in the contract it is clearly written that we can give a certain interest on the amount until we pay this money back to him. What do you all think can happen?
