Manju (Manager) 23 September 2010

Using other's cheque

One of my friends has received a cheque amounting 10,000 rupees in his favour (as both the names are similar) from LIC of India; actually that cheque belongs to somebody else but accidentally the cheque was credited in my friends account wherein the amount was used by him and later the actual beneficiary of that cheque approached him and demanded for the amount which had been used by him, and on his demand my friend agreed to return the amount of 10,000 rupees to the beneficiary, but the beneficiary is now demanding a sum of 20,000 instead of actual amount to which he is entitled because my friend held that amount for some months together. Now, I would like to know the necessary legal actions which the original beneficiary can take on my friend? And is there really any way to take legal actions on my friend as he is ready to pay the same amount which was used by him? Now how my friend can get rid of this issue? Does my friend really need to pay what the other person is demanding? What happens if my friend does not agree to pay the demanded amount? Does my friend will face any police action in this regard?

For your information: my friend used the amount intentionally as a sign of greed. My friend is now ready to pay 10000 rupees.

Reply would be highly appreciated.

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7 Replies

Suchitra. S (Advocate) 23 September 2010

Sir, I feel if your friend wants to have a legal way out, should inform the bank which made a mistake in crediting money in his a/c. Had the bank not credited the amount, he would not have used the money. If he is ready now to repay the money back, bank can inform the other person that it happened by their mistake. The other person has to sue bank in courts if he wishes to.

Vinoba (Advocate) 23 September 2010

Hello

Expert Mme. Suchitra is right.

L. Vinoba

Advocate,

Pondicherry.

Manju (Manager) 23 September 2010

Hi Suchitra, thanks for your response. I agree with you, but; what if a person steals other's cheque and deposits in his own account which is already signed by the original account holder? And I would like to know the sections which are applicable in this case to punish the accused?

Suchitra. S (Advocate) 24 September 2010

Now here the facts are different from the earlier one. Anybody can credit any amount to their a/c if they get to have a blank cheque by the person who has signed it. Be it given with confidence or or stolen. No offence by the person who credits.

(Guest)

Suchitra ,Now here the fact are different if a person lost his blank cheque with signature ,he must file compalint FIR and inform to bank,but if he did not file FIR ,then other person who get it can misuse the cheque,file 138 case and harass the person and its diffecult to prove in court for the accused side as we have to eastablish that the the cheque is lost and other person misuse it i.e,complainant.

Suchitra. S (Advocate) 24 September 2010

Kushan Sir, you are speaking about the duties of the person who lost the cheque. My reply was with regard to the person who get the cheque credited to his a/c when he gets a blank cheque. Filing a case under s.138 doesnt arise in the consequences wherein the amount is credited to his a/c. And what offences the person who signed the cheque allege?

V. VASUDEVAN (LEGAL COUNSEL) 25 September 2010

If somebody is abusing your good intentions, dont fall prey. Write a Letter to LIC and deposit the original amount you received to your account to them by way of a Demand Draft. No legal action can be taken against you if the cheque was deposited in your account by bona fide mistake. SInce you held the amount in trust, at the best you may pay the normal savings bank interest which you ought have earned on the amount, to LIC