LCI Learning

Share on Facebook

Share on Twitter

Share on LinkedIn

Share on Email

Share More

Nivas (Owner)     05 May 2010

False Cheque Bounce Case

Hello Dear Lawyers,

Due to family issues, my sister in law (elder brother's wife) left home and filed 498a on my brother and other family memebrs including me. Her maternal uncle (with the support from this lady) filed a cheque bounce case on me claiming that I took handload of 10L and cheque has been given to repay the money.

Later we realized that my sister in law took the cheque from our house and they filed a false case against me.

Currently we are undergoing the legal proceedings. They didnt produce any documentary evidence that I took the money from them. All they got is the cheque (it was a blank cheque signed by me and later they filled 9L and submitted to bank for clearance. as there were no funds - it was bounced back).

My lawyer is telling that it is up to the judge discretion since both the parties didnt produce any documentary proof. I am worrying that how can I prove innocence? It was a false case - since my sister in law family has muscle power and money, they have been troubing us. Any suggestions? If something goes wrong, I don't have any money to pay - we are lower middle class family.




 25 Replies

adv. rajeev ( rajoo ) (practicing advocate)     05 May 2010

What your maternal uncle is doing it is to be know first.  It is the bounden duty of the complainant to prove that there was subsisting debt, failure to prove is fatal to the case. only on the basis of your question it can't be advised you properly, so it needs what was the cross examination by your advocate and the defense taken etc.,

You can rely on the 2008 (1) NIJ 201( MaD)

2008 (2) NIJ ( NOC) (Mad): Dishnour of cheque -Existence of legally enforceable debt-initial burden of complaint-No record produced by the complainant in relation to the transaction in question.

If you send the certified copies of the complaint , depositions and the documents produced along with the complaint it is good to advise you

Anil Agrawal (Retired)     06 May 2010

Ask the court to direct the complainant to produce her bank statement showing the amount was debited to her a/c and credited to your a/c. You can also agitate about the source of her funds. I think income tax can be involved about her capacity to give such big amount as loan and whether it is reflected in her return.

bhupender sharma (head)     07 May 2010

if it is so then it is false case it is up to the complainant that it was a legally payable debt. Do not worry nothing will happen all will be well.

Anil Agrawal (Retired)     07 May 2010

Wait for more than ten years for nothing to happen. Till then be a regular visitor to the court, pay the lawyers through your nose, skip work, remain tense, lose sleep, forget relations with brother, his wife, etc. etc. 


Please note that law works on evidence and not on personal prejudices and heresay.

Judgments are pronounced on the basis of evidence only so earlier Judgments can come to your rescue if you are able to demolish the evidence of the complainant.

Keep in mind that the complainant has cheque from your cheque book signed by you. So you have to prove how it went out of your possession and how it came to the possession of the complainant.

Only if you are vigilant and fight at every stage against every application of the compplainant than only you can expect relief other wise not.

sunil Anand (Managing Partner)     08 June 2010

Dear sir,

             One year back myself and my friend taken a forest on lease on individual capacity, We both taken a depot for storing cut bamboos in the same village. As we are from same city we keep on helping each other in business. As my depot is 150 km from my nearest bank and my customers keep on deposting the purchase amount in my bank account.

              Being good friend and when ever he is going to city for his work I use to give him two three signed cheques to withdraw money from my account as you are aware that State bank of India in out of home branch does not give cash of more then 25000 to third party.

              on june 2009 he has taken four  cheques from me to withdraw money from my account and he has kept one of the signed cheque with him.  as my depot is in nexlite area and busy in business I just forgot to collect the signed cheque from him

               Now after one year he presented the cheque by filling the amount of Rs. 55 lacs in his name and got the cheque bounced and now he is black mailing me. except the signature the amount and name was not written by me. I am very tense please advice

Basavaraj (Asst, Manager-Legal)     08 June 2010

Dear Mr.Nivas,


You need not to worry at all, let them do whatever may be but everybody should pay at final stage when true comes out or when bundle of lies open in the court of law.


I would speak only on cheque bounce is concerned. In your case he/she claimed 10 L on hand loan basis. Let her prove her case, it is her onus to prove that  you taken Rs,10 Lhandloan from her. If you refer Reserve Bank of India’s guidelines on money transaction, RBI say that if more than 20 thousand money transaction should be on instrument or record not on hand loan.


Hence case against you may not stand on this ground is alone.   

Anil Agrawal (Retired)     08 June 2010

Mr. Anand

 You are on a sticky wicket. Can you prove that it was not legally enforceable debt?

harsh asthana (advocate)     08 June 2010

NI act 138 is attracted only when some body produces a cheque bouce slip stating reasons as in sufficient funds or similar but this is not enough He should also prove that cheque has been given for discharge of some liability.

In your case you can go offensive and ask them to produce source of funds for Rs. 9 lacs. you can also try and get their income tax assesments for last 3 years if they dont have sufficient funds backed by IT returns you can alwaays bargain with them stating that you can send IT guys



                                  Dear Mr. Nivas,

                                  You say that ur sister in law's uncle has filed a cheque bounce case against u for ten lakhs.It is quite obvious that when a person has claimed that he has given a handloan of ten lakhs in liew of a cheque,he has to show that the amount given to u as hand loan is shown in his books of accounts or in his bank statements on the date he has given u.Ten lakhs is not a small amount to be given right away unless it is black money.So u have to strenthen ur case on this count also in ur defence and make a strong case of ur defence.Even though u have ent rusted ur case to an eminent lawyer, it is ur duty to learn some of the legal points which will be very useful to defend ur self.

Nivas (Owner)     09 November 2010

Dear Basavraj,

Thanks for your response. It looks really promising.

Can you please point to the sourceof this information which I will supply to my lawyer for further action. I am really thankful to you.

"RBI say that if more than 20 thousand money transaction should be on instrument or record not on hand loan.
Hence case against you may not stand on this ground is alone "

Thanks a lot

DEFENSE ADVOCATE.-firmaction@g (POWER OF DEFENSE IS IMMENSE )     10 November 2010

This twenty thousand law is not by RBI but under IT act.

Howerver there are recents Judgments of HC that if it is proved you have taken money the procedural mistakes are not relevant.

Only thing is the liability should be legal. For example some body gave money from unaccounted funds it is illegal but accounted funds and even gave more that twenty thousand than  in that case the accused is liable to pay.

The reasoning of HC is that the concerned law will take its course against the lender and borrower can not escape liability.




Nivas (Owner)     12 November 2010

Dear Sir,

He didnt produce any evidence that he gave money and he said it was given through cash. No bank transaction.

My lawyer advised that it was their problem to produce evidence and prove. So I told that i didnt take any money from him. But lower court judgement came not in favor of us - i was convicted. Now I approached district sessions court and in desperate situation to get out of this mess.

My new lawyer in district court is telling that we can only move forward through legality of the case but not by producing any further evidence. Now we are in search of specific points for proving that this case is not legal etc.

Please suggest the way forward. I will be very thankful to you for kind suggestions.

Thanks a Lot

Anil Agrawal (Retired)     12 November 2010

138 is for cheque bouncing cases? What is happening in this country? Now cash is also covered?

Leave a reply

Your are not logged in . Please login to post replies

Click here to Login / Register