In 1996 as sole proprietor of an unregistered firm engaged in construction activity, issued 8 promissory notes and 8 cheques for different bill amounts, totaling 8 lakhs(amount filled, date and name left blank) as security towards purchase of building materials on credit. Supplier assured that after the transaction is completed he will return the cheques and promissory notes. Even after receiving total dues he did not returned the cheques and promissory notes saying that he destroyed them suspecting income tax raid. After that there were no transactions between us as he closed his shop.
I closed my firm and its current account with the bank in the year 2000.
I received legal notice dated 20.01.2007 stating that I borrowed Rs 2, 69,343 @ 24% per year on 31.7.99 and executed 3 promissory notes and endorsed them on 10.7.2002 by paying 1000/- for each note. When they demanded on 10.6.2005 for 6, 49,000 with interest, that I held a panchayath and issued 5 post dated cheques for Rs5, 03,500 dated 15.12.2006, after presentation in the bank they bounced, and bank memo states that account closed.
I have not replied to the notice.
Case filed u/s 138 on 12.3.2007, I received summons in 2009 i.e after 2years
Now trial is progress and complainants cross examination is due in few days.
Please examine these points observed by me and give your valuable suggestion:-
Firm name (account name) not mentioned in notice. One extra initial added to my name
With interest the amount shown in notice is 6, 49,000/- but demanded 5, 03,500
In the notice it was stated that I issued postdated cheques. But in complaint he said drawn on 15.12.2006
Account closed 6 years prior to date of cheque.
Promissory notes not produced till date.
Name and date on cheque filled by him with different ink and writing.
19 printed on cheque date line (-------------------19-------) shows that it is old cheque issued long back
Cheque not crossed.
Multiple promissory notes and cheques with odd figured amount show that they are material bill amounts. Filled cheques issued as security.
Time barred promissory notes by 18 months.
There is no proof of panchayath.
Stated that loan was paid in cash.
Old transactions not mentioned at all anywhere.
I also don’t have any solid proof of old dealing.