Respected members please guide for a cheque bounce defence case
One friend of mine has taken Rs 40000 from a person against which he has paid around Rs 37500 in last 1.5 years as interest With equal amount of around Rs 2202 Rs each month. All these transactions were carried through bank only.
At the initial time of loan he has given a undated cheque of Rs 40000 to the person who gave loan.
Now my friend is in deep financial crises and unable to pay interest and repay the loan for time being. He requested him to wait for some time but the other person is not ready.
He had issued a cheque bounce notice where in it is written that my friend has taken Rs 50000 and he has given a cheque of Rs 40000 which is bounced.
The said fact is incorrect and the fact is that a loan of Rs 40000 was taken against which around 35000 was paid as interest all through the banking system.
Is there can be a defend in such case. Please tell.