Loan recovery cheque bounce
3 months ago
Hello Sir/Madam,
I gave some amount like 40 lakhs to my friend on 2016 via Bank RTGS. And he promised to return me the money with 15% interest. Also he gave me a cheque for 25 lakhs without mentioning the date in the xheque. After repeated request, he didn;t return he money. And I depoited the cheques on 7-dec 2023 which got returned with Fund Insufficient.
My lawyer sent a legal notice on 12-Dec but he didn;t reply to the notice. So my lawyer said that he need to file a case . But i want to change the lawyer. Is it possible that the new lawyer can file the case now.
Also, can I file a case for 40 lakhs or it can be only for 25 lakhs only.
A.Dear Client,
When an individual issues an undated cheque as security against a loan, and there's no formal agreement in place, the recipient or lender holding the cheque has the freedom to present it for encashment on any date by affixing a date. If the cheque is dishonored, the holder can initiate legal action against the drawer under Section 138 of the Negotiable Instruments Act, 1938, within three months from the presentation date. A recent Supreme Court ruling in the case of Sripati Singh v. State of Jharkhand (2021) clarified that a cheque issued as security in a financial transaction is not automatically considered worthless. The decision emphasized that there is no absolute rule preventing the presentation of a cheque issued as security.
In a transaction where a loan is provided, and the borrower agrees to repay within a specified timeframe, issuing a cheque as security is a common practice. If the loan isn't repaid through another means before the due date, and there's no agreement to defer payment, the holder of the cheque is entitled to present it. Dishonor of such a cheque triggers legal consequences under Section 138 of the Negotiable Instruments Act.
An undated cheque, voluntarily signed and handed over towards a payment obligation, is subject to the presumption outlined in Section 139 of the Act. Consequently, the drawer of the cheque may face charges under Section 138. However, in the absence of documentary proof for a claim of 40 lakhs, legal action should be pursued for the amount of the dishonored cheque, i.e., 25 lakhs. If there's no prior authorization for an advocate, the issue of changing advocates does not arise, and you can engage any advocate to file your case promptly within the applicable time limit.
Thankyou
When an individual issues an undated cheque as security against a loan, and there's no formal agreement in place, the recipient or lender holding the cheque has the freedom to present it for encashment on any date by affixing a date. If the cheque is dishonored, the holder can initiate legal action against the drawer under Section 138 of the Negotiable Instruments Act, 1938, within three months from the presentation date. A recent Supreme Court ruling in the case of Sripati Singh v. State of Jharkhand (2021) clarified that a cheque issued as security in a financial transaction is not automatically considered worthless. The decision emphasized that there is no absolute rule preventing the presentation of a cheque issued as security.
In a transaction where a loan is provided, and the borrower agrees to repay within a specified timeframe, issuing a cheque as security is a common practice. If the loan isn't repaid through another means before the due date, and there's no agreement to defer payment, the holder of the cheque is entitled to present it. Dishonor of such a cheque triggers legal consequences under Section 138 of the Negotiable Instruments Act.
An undated cheque, voluntarily signed and handed over towards a payment obligation, is subject to the presumption outlined in Section 139 of the Act. Consequently, the drawer of the cheque may face charges under Section 138. However, in the absence of documentary proof for a claim of 40 lakhs, legal action should be pursued for the amount of the dishonored cheque, i.e., 25 lakhs. If there's no prior authorization for an advocate, the issue of changing advocates does not arise, and you can engage any advocate to file your case promptly within the applicable time limit.
Thankyou
Helpful
Helpful
Share
A.Dear Client,
When a person issues an undated cheque putting an amount as security against a loan and in the absence of any agreement, the cheque receiver or lender holding the said cheque is free to present the same for encashment on any date by putting a date on the cheque and if the cheque is dishonored or bounced for any reason, then holder of the Cheque can file a criminal suit against the drawer of the cheque under section 138 N I Act, 1938 within three months from the date on which it was presented in the bank. The Supreme Court in the case of Sripati Singh v. State of Jharkhand, 2021 SCC OnLine SC 1002, decided on 28.10.2021, held that a cheque issued as security pursuant to a financial transaction cannot be considered a worthless piece of paper under every circumstance and that there cannot be a hard and fast rule that a cheque which is issued as security can never be presented by the drawee of the cheque. If in a transaction, a loan is advanced and the borrower agrees to repay the amount in a specified timeframe and issues a cheque as security to secure such repayment; if the loan amount is not repaid in any other form before the due date or if there is no other understanding or agreement between the parties to defer the payment of amount, the cheque which is issued as security would mature for presentation and the drawee of the cheque would be entitled to present the same. On such presentation, if the cheque is dishonored, the consequences contemplated under Section 138 and the other provisions of the N.I. Act would flow. An undated cheque leaf, voluntarily signed and handed over by the Drawer of the cheque, which is towards some payment, would attract presumption under Section 139 of the N.I. Act and the drawer of the cheque will be held accused under Sec. 138 of N I Act, 1938. However, in the absence of any documentary proof of your claim of 40 lakhs, you have to file a case for the amount of the dishonored cheque, i.e, for 25 lakhs. If you did not sign any Vakalatnama authorizing any Advocate to file the case, the question of change of Advocate does not arise. You can hire any Advocate to file your case within the time limit ASAP.
When a person issues an undated cheque putting an amount as security against a loan and in the absence of any agreement, the cheque receiver or lender holding the said cheque is free to present the same for encashment on any date by putting a date on the cheque and if the cheque is dishonored or bounced for any reason, then holder of the Cheque can file a criminal suit against the drawer of the cheque under section 138 N I Act, 1938 within three months from the date on which it was presented in the bank. The Supreme Court in the case of Sripati Singh v. State of Jharkhand, 2021 SCC OnLine SC 1002, decided on 28.10.2021, held that a cheque issued as security pursuant to a financial transaction cannot be considered a worthless piece of paper under every circumstance and that there cannot be a hard and fast rule that a cheque which is issued as security can never be presented by the drawee of the cheque. If in a transaction, a loan is advanced and the borrower agrees to repay the amount in a specified timeframe and issues a cheque as security to secure such repayment; if the loan amount is not repaid in any other form before the due date or if there is no other understanding or agreement between the parties to defer the payment of amount, the cheque which is issued as security would mature for presentation and the drawee of the cheque would be entitled to present the same. On such presentation, if the cheque is dishonored, the consequences contemplated under Section 138 and the other provisions of the N.I. Act would flow. An undated cheque leaf, voluntarily signed and handed over by the Drawer of the cheque, which is towards some payment, would attract presumption under Section 139 of the N.I. Act and the drawer of the cheque will be held accused under Sec. 138 of N I Act, 1938. However, in the absence of any documentary proof of your claim of 40 lakhs, you have to file a case for the amount of the dishonored cheque, i.e, for 25 lakhs. If you did not sign any Vakalatnama authorizing any Advocate to file the case, the question of change of Advocate does not arise. You can hire any Advocate to file your case within the time limit ASAP.
Helpful
Helpful
Share
A.Dear Sir,
If the amount is only Rs.25,00,000/- then you cannot change the amount. However, you can change the advocate and get it filed immediately as there is outer limit of 45 days to file a cheque bounce case.
If the amount is only Rs.25,00,000/- then you cannot change the amount. However, you can change the advocate and get it filed immediately as there is outer limit of 45 days to file a cheque bounce case.
Helpful
Helpful
Share
Read Related Answers
Fake cheque bounce case
Dear Client,
To address a false complaint or false criminal proceedings filed against you, you can seek its quashing through a petition before the High Court under Section 482 of the Code of Criminal...
FD as a security for bail
Dear Client,
Generally, FD can considered as a legitimate form of security for bail in cheque bounce case. However, in most of the cases it involves specific procedural requisites, wherein, the bank c...
Cheque bounce due to stop payment.
Dear Sir,
You just file cheque bounce case against him and then let him contest the case and prove his defence which is very hard.
Cheque bounce
Dear Client,
According to Section 138 of Negotiable Instruments Act, cheque bounce is a punishable offence with an imprisonment of up to two years and fine up to twice the amount of cheque. So, the ag...
Cheque bounce case
Dear Client,
a cheque bounce case under sec 138 of the NI act must be filed within 1 month of the act and legal notice must be sent within 45 days of the offence, but if the arrest is made 5 years af...
Read Blogs on Cheque Bounce
Cheque Bounce Lawyers
Find Lawyers by Location
