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krish (professional)     15 August 2012

Cheque bounce and over valuation of land


I have given some amount to a friend to expand his company and out of that he repayed partial small amount and for the remaining amount he has given the cheques. he mortgaged his agricultural land as a security which he inflated the land value by 5 times and cheated me.

out of the cheques given 1 cheque has been bounced in May 2012 and he did not repay that amount. when I asked him about that and remaining scheduled payments he has given me the cheques, when deposited those cheques are bouncing.

Can I book a criminal case for over-valuation by 5 times for his land and cheating me? and also cheque bouncing?



 11 Replies

Dr.Chandran Peechulli (Chief Consultants)     15 August 2012

  • Have you lent money with a written understanding on business terms, to share the profit or loss?
  • It appears 'NO' or have you lent money on specific interest terms, period of return etc.? If no, you can file a criminal case for the cheque-bounce case and recover your money.

Advocate Bhartesh goyal (advocate)     15 August 2012

Yes,you can file cheque bouncing case u/s 138 0f N.I.Act against drawer for get him punished under the said provision.You can also simultaneously file suit for recovery of cheque amount u/o 37 of C.P.C.

Ajit Singh Cheema (practising Advocate)     15 August 2012

The charge of cheating may be difficult to prove ,as it was your duty to cross check the valuation made (refer : Buyer Beware)

Better file cheque bounce cases and under the pressure of imprisonment and fine as punishment , recover your money.

Bhaskaran Advocate (Lawyer)     15 August 2012

Seems you have passed the time to give notice on one cheque which has bounced.  You can represent that if it is still within time and give notice to the other party.

Consult an advocate immediately since you have no time for discussions.

surjit singh (Assistant)     15 August 2012

I adher to the above learned Advocate's opinion

SACHIN AGARWAL (ADVOCATE)     15 August 2012

Better to file case u/s 138 N.I. Act for cheque dishonour.

krish (professional)     15 August 2012

Many thanks everybody for their time in replying. I have few questions.

He registered his agri land in the registered office as mortgage and interest agreed is mentioned in the document. It says whenever asked he has to pay the money.


krish (professional)     16 August 2012

could you please suggest any good advocates for cheque bounce and land litigations in hyderabad area?

Hemant Agarwal ( Mumbai : 9820174108)     17 August 2012

Originally posted by : krish

could you please suggest any good advocates for cheque bounce and land litigations in hyderabad area?


Adv. P JANARDHANA REDDY  : 09985133699


Keep Smiling .... Hemant Agarwal

R Trivedi (     17 August 2012

S.138 may not  get you desired result, for the simple reason that you have his mortgaged property as security. It is your right to file the case, but you may not get the case in your favor, he will have a simple defence that the said cheque is dishonored even while keeping the property with you, moreover you are required to encash the security in case of failure of payment instrument. Court will not go into valuation aspect of property. 

krish (professional)     17 August 2012

He did not give the cheques for the purpose of the security but to clear off the dues by those specified agreed dates. Hence in this case, can he defend? He is not trying to pay the money and continuously postponing. He already postponed several times and finally agreed to clear but the cheques are bounced.

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