Richa (HR) 24 January 2013

Society loan case

Hello,

My uncle has taken loan from a private society 10 yrs back for one lakh @ 9% interest

He paid around 60 thousand but couldn't pay then.....after few years the case is gone to court.

He gave some blank cheques 10 years back for security.

Now the society says that they will deposit the cheques. and for 1 lakh with interest they are for 10 lkh

The questions:

1. Can they ask for 10lkh for 1 lkh principle?

2. Can they deposit 10 years old cheques?

3. What could be the solution?

Happy if someone can help.

Thanks.

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1 Replies

Joseph Wilfred (Voluntarily Retired from Indian Overseas Bank) 26 January 2013

YOUR UNCLE HAD AVAILED ONLY RS. 1 LAC AT 9% INEREST FROM THE SOCIETY .HE HAS PAID ALREADY 60,000/- WHICH INCLUDES INTEREST ALSO .WHAT CASE IS PENDING IN THE COURT . IS IT A CIVIL CASE FOR RECOVERY OF THE REMAINING AMOUNT WITH NINE PERCENT INTEREST PLUS THE APPLICABLE PENAL INTEREST AND THE COURT FEE PAID BY THE SOCIETY . YOU LET ME KNOW WHAT IS THE CLAIM AMOUNT .IF IT IS REASONABLE THEN YOU SETTLE THAT AMOUNT AND GET RELIEVED FROM THAT CIVIL CASE . REGARDING THE CHEQUES YOU HAVE GIVEN AS SECURITY FOR THE LOAN AMOUNT AND THAT TOO 10 YEARS BACK YOU NEED NOT BOTHER . BUT DON'T CLOSE THAT ACCOUNT FROM WHICH YOU HAVE ISSUED THE SECURITY CHEQUES . ARE THOSE CHEQUES ISSUED 10 YEARS BACK ARE BLANK CHEQUES AND ONLY WITH THE SIGNATURE OF YOUR UNCLE . YOU PLEASE INFORM ME THE DETAILS . THERE ARE SEVERAL PRECEDENTS IN NEGOTIABLE INSTRUMENTS ACT THAT IS 138 OF N.I. ACT . IF THOSE CHEQUES ARE DEPOSITED AND RETURNED FOR " INSUFFICIENT FUNDS " AND IF YOU RECEIVE A LAWYER'S NOTICE FROM THE SOCIETY THEN REPLY TO THAT LAWYER'S NOTICE STATING THE EXACT FACTS UNDER WHICH THOSE CHEQUES WERE ISSUED . DON'T GIVE " STOP PAYMENT " FOR THOSE CHEQUES . REST ON HEARING FROM YOU .-JOSEPH WILFRED - 26/01/2013 AT 09.22 HRS.