Signed check taken by lender

You have to defend your case stating that the cheque is supported by consideration of Rs.70,000/- whereas the lender has filled up the cheque for Rs.20.00 lakhs or so.   Once the cheque is bounced, the lender will issue a statutory legal notice seeking refund of the amount.  Then you have to give reply notice about the facts of the case.   There is no other document; the lender has no capacity, no consideration is passed on, etc., are some of the defences.  You have to establish/prove your case to the effect that Rs.20.00 lakhs was not at all received by leading cogent oral and documentary evidence if any.  Once the court disbelieves his version, there is every possibility, his case will be dismissed automatically.  That's why, as a precaution, it is better to fill in the cheque when it is given to lender. 

If your neighbour is serious about his apprehensions, it is even today open for him to issue a legal notice with all the facts of the case, by notifying the Banker also - if necessary by marking a copy to Police. 

Nowadays the period of validity seems to have changed from 6 months to 3 months.  Whether the date is put on the cheque or not.  If the date is put, if it crosses 3 month period, the cheque is not valid.

Please feel free to contact: DVM Rao, Advocate, Hyderabad 98663 92354

Archana, it would be advisable if your neighbour could write a letter to the lender mentioning about the amount of cash loan availed and asking him to provide the confirmation of the same by acknowledging that letter.

Further, it would be adviable if your neighbour could instruct the bank about the limit of the amount to be passed on that cheque when it is presented in the bank by the lender.

Incase of any query. please contact Advocate Rohit Dalmia on 09324538481 at Mumbai.

Archana, it would be advisable if your neighbour could write a letter to the lender mentioning about the amount of cash loan availed and asking him to provide the confirmation of the same by acknowledging that letter.

Further, it would be adviable if your neighbour could instruct the bank about the limit of the amount to be passed on that cheque when it is presented in the bank by the lender.

Incase of any query. please contact Advocate Rohit Dalmia on 09324538481 at Mumbai.