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P.K.Haridasan (Advocate)     20 January 2010

Legal actions available

 My friend borrowed certain some from his friend giving blank cheques as security. He repaid the entire money . The lender is not returning the blank cheque inspite of his repeated requests. What are the remedies available for my friend to get back his cheques. The lender is likely to misuse it for extracting more money. Please air your views with suitable remedies available for my friend.


 13 Replies



P.K.Haridasan (Advocate)     21 January 2010

 Issuing legal notice will only speed up misuse. It will give them time to manipulate

A V Vishal (Advocate)     21 January 2010

It is not clear in your query whether you have any evidence for the repayment of the amount and further did you take back/destroy the DPN note or any document purported to having received the loan from the lender.

P.K.Haridasan (Advocate)     21 January 2010

 Repayment made by cheques. Full evidence. The loan is not from institutiion. This is a transaction between two induviduals.

S. Bharath (Advocate and Arbitrator Formerly Civil Judge)     21 January 2010

Issuing a legal notice as Mr. Janardhana Reddy said, is one of the best ways. Every legal option might have its own flip sides in reality, like it might speed up the misuse. But we need to be aware that any misuse or manipulation takes place only after the issuance of notice, which fact will weigh with a court of law. Further such a notice will be a prelude to a suit for mandatory injunction directing the lender to return the cheques.

Another parallel measure is to issue a "Stop-payment" instruction setting out the facts.

Remedies under special enactments like the Money Lenders Act and any enactments made to protect the interests of borrowers like the Prohibition of Charging Exorbitant Interest Act [if applicable to this case], may be explored, apart from lodging a police complaint.

Whatever be the case, I totally agree with Mr. Reddy that a legal notice is the immediate step to be taken.

A V Vishal (Advocate)     21 January 2010

Even if the transaction is between two individuals the borrower must have executed some promissory not etc ... to the lender, if in absence of such acknowledgement, then in such a case inform the bank for stop payments of the cheques issued by you. However, in a 138 case there is a presumption that the cheque was issued in lieu of a loan. Hence, the lender must prove that he had lent the money and has not received it back from you.

P.K.Haridasan (Advocate)     21 January 2010

 Dear Bharthji & Vishalji

Thank you for ur prompt reply. It helps me a lot.


CS Pooja (Company Secretary)     21 January 2010

I suggest you to check from your friend whether the cheques given were dated.

If 6 months have elapsed, there is no need to panic.

If not, then your friend can certainly go to his Banker and request him for the "stop payment" of those cheques issued...

This is simpler than it sounds...

1 Like

nikhil kumar sinha (legal associate)     23 January 2010

i would like to know for my information , cant the cheques be cancelled by informing the bank . or its complicated ?

Syed Adbul Khader Jeelani (Advocate 9642388507)     23 January 2010

As the cheque is empty the case can be filed by some planted lender. friends in these cases even stop payment will not hold good if there is no proof of repayment of money. Even stop payment will also be attracted u/sec 138 r/w 420IPC.

CS Pooja (Company Secretary)     23 January 2010

The question here, was how to stop the misuse of blank cheques given.

Regarding the proof of re-payment, the same needs to be proved by way of bank details/ receipts/ witnesses if any.

CS Pooja (Company Secretary)     23 January 2010

Answer to Nikhil's question:

For "stop payment" of the cheque, a letter needs to be written to your Bank giving the details of the cheques i.e cheque numbers.

Your Bank will charge you a nominal amount as charges (depending upon the Bank), for each cheque so cancelled.

It is a very simple process.

nikhil kumar sinha (legal associate)     25 January 2010

if its so simple then wat is my dear friends concern

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