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Roshan (System Administrator)     24 March 2013

Plz help,cheque bounce by finacier

Hello team,
I have borrowrd rupees 1lakh from a local financier one year back,and the intrest rate is 10% per month.for security he collected my  blank cheque,due to financial problems i am unable to pay the intrest.one week back he presented the cheque filling with the amount of 1lakh and it got bounced.Now he is threatning me that he is going to  file complaint against me,plz kindly suggest what should i do in this case.



Learning

 12 Replies

chitrarasu (advocate)     24 March 2013

Not a threatning, He taken a legal action, now you approch financiar settled the amt, oterwise he file a petition through magistrate court after you conduct the case.

Advocate M.Bhadra   24 March 2013

He can file a case against you u/sec.138 N.I.Act in Magistrate Court,try to amicably settle with the lending person.


No offence u/sec.138 N.i.Act for SECURITY CHEQUE.

 Judgment IN THE HIGH COURT OF JUDICATURE AT BOMBAY CRIMINAL APPELLATE JURISDICTION Joseph Vilangadan. v. Phenomenal Health Care Services Ltd. & Anr. CRIMINAL WRIT PETITION NO.2243 OF 2009 CORAM : J.H.Bhatia, J. DATE : 20th July, 2010 .

 

ORIGINALY POSTED IN     legaltwek.blogspot.in ;---------

Very often financial institutions, money lenders, business establishment demand blank post-dated cheques from the borrower as a security for repayment of loan. The question is, whether prosecution can be initiated against the drawers in case of dishonour of cheque given as a security under section 138 of Negotiable Act?
It is doubtful if provisions of Section 138 of the Negotiable Instruments Act would be attracted to a case in which a blank or post dated cheque is obtained by a bank or money lender before or while sanctioning or disbursing loan amount as security for the loan”, observed Hon’ble Bombay High Court in Rajendra Warma v. Ramkrishna Urban Cooperative Credit Society Case while holding that banks cannot prosecute borrowers if the blank post dated cheque issued by them (Borrowers) as collateral security is dishonoured, sending a sense of disappointment across commercial and business circle.ery often financial institutions, money lenders, business establishment demand blank post-dated cheques from the borrower as a security for repayment of loan. The question is, whether prosecution can be initiated against the drawers in case of dishonour of cheque given as a security under section 138 of Negotiable Act?

It is doubtful if provisions of Section 138 of the Negotiable Instruments Act would be attracted to a case in which a blank or post dated cheque is obtained by a bank or money lender before or while sanctioning or disbursing loan amount as security for the loan”, observed Hon’ble Bombay High Court in Rajendra Warma v. Ramkrishna Urban Cooperative Credit Society Case while holding that banks cannot prosecute borrowers if the blank post dated cheque issued by them (Borrowers) as collateral security is dishonoured, sending a sense of disappointment across commercial and business circle.

adv. rajeev ( rajoo ) (practicing advocate)     24 March 2013

Before filing the case case he has to issue the notice to make the payment of the cheque amount.  Some high courts have said cheque given as security deposit attracts 138 of NI Act and some say no But the judgement given by learned member Minansu Bhadr can be used if he filed the case.

After receipt of the notice you can reply taking the defence that cheque was issued as security and you can also go for compromise, if he didn't agree for the compromise you can contest the case you have got points.  For this you contact your lawyer. 

Advocate Sastry (Advocate)     24 March 2013

Better settle the matter through compromise.. Your financier has not done anything wrong.. Please remember that he gave you money when you were in need of it. Now you have to pay back either out of court or through court

Roshan (System Administrator)     24 March 2013

Can i appeal against this case,that the financier has lended me the money for a high amount of intrest (10%) which is illegel

Advocate Sastry (Advocate)     24 March 2013

When you were in need of money was the rate of interest of 10% was considered legal and justified by you ? If you have decided to contest the case  it is your will and pleasure and the courts decide the legality of the issue.

Roshan (System Administrator)     24 March 2013

i have paid him a amount of 1 lakh already as intrest for one year,inspite knowing my financial situation he is torturing me,i have asked him to give me a time of 3month,he is not ready to accept that.....

Advocate Sastry (Advocate)     24 March 2013

There are only two ways 1) Contest  2) Compromise with financier. Choice is yours

MARU ADVOCATE (simple solutions for criminal legal problems -- yourpunch@gmail.com)     24 March 2013

There is great misunderstaning about SECUTIRY cheques and every accused is saying the cheque was given as security cheque.

 

In the citation of Bombay HC the court has clearly stated that-

 

 

This is clear from the covering letter dated 29-12-1999 in which it has been mentioned that the
cheque of Rs. 10,00,000/- was kept as a security though the outstanding bill was Rs. 8,00,000  and ......

in the facts and circumstances of the present case, the accused has successfully rebutted the
presumption which is raised under Section 118 r/w Section 139 of the said Act.
 

so till accused is  able to prove that there was no liability the said cheque or any other such cheque can not termed as security cheque in any case.

 

In the present problem though the accused is trapped with a money lender but he should contest the case properly and can come out since there are bound to be many lapses on the part of complainant particulary the source of funds and when  and how  money was actually given.

 


annonymous (na)     24 March 2013

case can be contested on following basis to ..  

moneylender have no licence to lend money .. so he gave money illegaly  ... and to recover illegal money  you cannot use law . google  judgements regarding it

Advocate Sastry (Advocate)     24 March 2013

Dear Maru,

Thanks for your comments... Each case differs on its facts.. I feel in the present query the covering letter for the given cheque might not have been there.. Mr. Roshan shd contact local advocate and decide future course of action

mehmood (proprietor)     25 March 2013

CAN SLEEPING PARTNER BE HELP RESPNSIBLE UNDER NI ACT 138 THOUGH SLEEPING PARTNER HAS NOT SIGNED CHEQUE . KINDLY REPLY


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