Legal Question in Banking Law in India

Around 8 months back i had suffered a loss in stock market there for i needed to pay 5 lakahs to broking firm as i was unable to pay one shot i issued them 5 chqs for the same and got cleared one of them also however due to poor financial conditions couldn't arrange to clear balance four chqs,as of now i have just got the job of 25k pm.they are charging me intrest also which i had agreed upon i am redy to pay their money also along with inetrest nut now the issue is they are insisting on to pay large sums (1 lakh) as par the chqs every month and if not threatening me to file a case and asking for punishment inplace of money etc.when i explained them my in ability to pay large sums and asked them to extend the term .

Now my question is

A.In case of these kind of situation can the firm ask for these kind of punishmant as it was purely a business transaction and haven't been able to pay due to poor financial condition wheres i m ready to pay the money also along with interest.plz advice


Asked on 2/25/11, 10:44 am

2 Answers from Attorneys
Sanjay Kalra Sanjay Kalra & Associates

This is no excuse for you to say that my financial condition has gone bad to worse. The firm has lot of options against you but i too feel you have some options too .

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Answered on 2/26/11, 12:27 am
J. Radhakrishnan independent Practice

having issued cheques which have bounced, there appears to be no escape from the penal action your broking firm would take. Meet them and persuade them to come to some settlement. Besides that there appears to be no solution to your problem.

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Answered on 2/26/11, 9:13 am


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