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Sriram (Analyst)     19 September 2010

Threat to bounce the cheque even after repaying the amt

Dear Sir, I took 1 lac rupees from my friend to invest in shares and agreed to pay him 4% monthly for 6 months. For security, I gave him a cheque of Rs 1,24,000. The agreement is, I will pay him monthly 4% i.e. 4000 Rs for 6 months and then repay the 1 lac at the end of 6th month. And he will return the cheque to me. I gave him 4% for 3 months and due some issue in my job, I could not continue to do share trading so I returned the 1 lac to him via bank to bank to transfer after completing 3 months. And he was to suppose to return the cheque. But now he is not returning. And threating me that he will bounce the cheque Rs 1.24 lac if I don't pay him the remaining 12% interest. I returned the money in 3 months with 12% interest. If I had the money with me for 6 months and paid him only 12%, then what he is asking is fair. But I returned the money in 3 months with agreed 12%. 

My question is, I have the bank statement as an evidence for returning the 1 lac amount to him. Can he still bounce the cheque and file a case against me? If I show the evidence for returning the principal amount, will the court dismiss his case?

Thank you for advising me. 


 9 Replies

Sriram (Analyst)     19 September 2010

One more question, Can I also stop the cheque? Will that make any difference other than saving me cheque bounce charges?

DEFENSE ADVOCATE.-firmaction@g (POWER OF DEFENSE IS IMMENSE )     19 September 2010

He has to show legal liability otherwise case will not suceed.

1 Like

bala (officer)     27 September 2010

what is meant by legal liablity?

Adv Archana Deshmukh (Practicing Advocate)     27 September 2010

It means legally enforceable liabilityt. A liability to pay which is enforceable through a court of law by filing appropriate legal proceedings.

vijay sahni (LAW PROFESSIONAL )     02 October 2010

Please Stop the Payment immediately with an  Regd Ad letter to you friend  describing the full & final payments by you. Pl also request him to return the cheque given as security against the said loan. This will act as an tool for you  in case your friend initiate legal proceedings against you. Pl give various reminders in 15 days notice. to comply upon. 

R JAYARAMAN (Consultant)     01 November 2010

Dear Sri Sriram

What is the date of the cheque?  please inform me I will let you further in the matter Best Wishes

nisha bansal (LAW OFFICER)     15 November 2010

you do one thing send a letter via registered post writing that you have discharged the liability of loan with interest due explaining details of payment alongwith date of payment.... and requesting him for return of security cheque immedialtely. on the other hand get the stop payment of the cheque... he can not prove the case u/s 138 as there is no legal enforceable liability against this cheque....

in the letter of stop payment of bank give the statement as under

" please stop the payment of the cheque no. .........dated..... as i have already paid the due by another cheque........."

if you get any written comunication further from the counter party,, let us know the same again....


















Rohit (Legal)     17 November 2010

i agree

T.R. Ganesan (Advocate)     18 November 2010



Quickly write a letter as suggested by NISHAA  BANSAL and send it by Registered A.D.

T.R. Ganesan

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