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Raj Nikhil Kumar (Prop)     18 January 2013

Bearer cheques given to relative towards fund for investment

Unmarried Daughter who is Army Officer kept blank signed cheque book with mother and brother so that they could invest in tax saving schemes/ make fixed deposits and other investments on her behalf. This was done because she was posted all over India and got just one month leave  in a year to visit home. For the past 14 years mother and brother have been regularly withdrawing money from her bank account using her blank signed cheques. Mother and brother have invested money in their own name saying that it will save tax for her.  She also took loan from her Provident Fund account and got her parents house repaired and extended as parents promised that the new extended portion will be given to her by making will in her name. 

Daughter also bought a plot for which brother returned Rs. 5 Lakhs by cheque from money taken by family.

Now the daughter has married and her brother and parents have refused to return money or give her the share in house.

Brother and parents have original Sale deed of plot and now brother says that she should return Rs. 5 Lakhs given at time of purchase of plot as it was loan.  Fact is that daughter has helped and given the family more than 15 lakhs over a period of 14 years.

Daughter now wants to get money given back. Can she file a case of cheating, fraud and misappropriation of assets against brother and mother, father. Can she get her money back?

Also will the bearer cheque payments withdrawn by her mother and brother be sufficient evidence in court of the fact that money was taken by them?



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 7 Replies

sureshkumar g r (lawyer)     18 January 2013

She can very well file an fir and has to establish that the money meant for tax saving schemes was misapporpriated by her mother and brother.

MARU ADVOCATE (simple solutions for criminal legal problems -- yourpunch@gmail.com)     19 January 2013

It seems that it is ego clash since no court will believe that an army officer was sleeping for such alleged actions for FOURTEEN LONG YEARS.

Raj Nikhil Kumar (Prop)     19 January 2013

Dear Counsel, 

For FOURTEEN LONG YEARS all was well as the girl was unmarried and mother, brother and father were enjoying the pleasure of complete control over her funds as mentioned before. They stopped being amicable when she married two years back. Where is ego here? Nobody was sleeping etc. the promise of share in property etc. was broken when she married. It amounts to cheating and misappropriation of funds given for investment for their own benefit.

My Question is whether bearer cheque payments withdrawn by her mother and brother be sufficient evidence in court of the fact that money was taken by them?

SANTOSHSINGH. (ADVOCATE sardarsena@gmail.com)     20 January 2013

No ,it will not be any evidence.

Raj Nikhil Kumar (Prop)     20 January 2013

My Question is whether bearer cheque payments withdrawn by her mother and brother be sufficient evidence in court of the fact that money was taken by them?

Let me rephrase my Question above...  Cash withdrawals using blank signed cheques by mother and brother will carry their signature for acknowledgement of receipt of cash from cash counter of bank. Also, bank makes note of the name of person taking bearer cheque cash payment. This fact along with the fact that the Army Officer daughter was always out of city posted to different areas in India and came home only for 30 days in a year on annual leave.

The combined evidence of cash withdrawals and absence of daughter should be enough to prove that she had entrusted her signed cheque book with mother and brother so that they could encash the money whenever they had need for funds to be invested on behalf of daughter. Now if they took the money but misappropriated funds for their own benefit? The evidence as mentioned above should suffice to prove the same?


What is your expert opinion on this? Please explain.

Best regards

Gauranga Bhattacharya (Officer ( Retired ))     20 January 2013

a) She had given bearer cheques, duly signed.  There was no need of issuing bearer cheques since the cheques, duly crossed, could have been issued in favour of the Bank itself (pay to xyz bank or order...),leaving the amount blank, for opening Term Deposit Accounts (Tax saving, etc) in her name. Since she is educated enough she ought to have known this.

b) On the back of the bearer cheques, she could have write the purpose, i.e., for Term Deposit Account in my name. This could have a proof of her intention of issuing bearer cheques. She did not do this.

c) In spite of lapse of 10 years time, the maximum period a Term Deposit can be opened with the bank, she did not care to inquire whether the maturity proceeds had been credited to her account and the amount.

d) This negligence on her part had 'estopped' her from lodging any complaint with the Bank for any fraudulant drawing of funds. Actually, she did never written to Bank enquiring about the state of her Account nor did she take any Account Statement from the bank.

Hence, she has very little/no option to complain fraudulant drawing of funds from her account.

As regards the property, since it was NOT in her name, she owns no right to pursue the court.

GBhattacharya

Retd.Bank Officer.

Ashish Singla 098140 76600 (Cheque Victim's Lawyer. LUDHIANA (PB))     22 January 2013

Hi,

As per your question , yes she can proove well in court that her parents withdrawn the money from her account in her absence , now you see how it can be  helpful for you , you have to decide according to situation availabl;e with you.


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