cpc

blank cheques. interesting !!


Most NBFCs take blank cheques from their borrowers after taking the ECS mandate. they do not give any rceipts for the same. when a borrower defaults, they fill up rest of the details, like defulted amount+ interest  penalty  and deposit in the borrowers bank. as usual the cheque bounce. the NBFC files case u/s 138 of NIA in court of a 'co-operative' magistrate.

can such filling up of details by NBFC amount to impersonation, cheating? the NBFC has no proof that the cheque has been given by he borower (obviously).  can blank cheques be taken by NBFC after taking an ECS mandate from borrower? if so , then why do th eNBFCs not give any receipt for the same?

 
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Consultant & Legal Analyst

It is a clear case of cheating. When payment by ECS is authorised there is no logic of taking even PDFs what to say of blank cheques. However, the borrower must create proof by entering in to correspondence with the bank and insisting on acknowledgment of the blank cheques and the purpose of taking blank cheques when payment through ECS is authorised.

 
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