Legal Question in Banking Law in India

Blank Cheque in lieu of friendly loan and prosecution under section 138:

Since my brother denied me any rights into my father's hereditary property after my father passed away, I filed a case in the High Court for getting my share of the property. My brother even denied me the access to all my important documents, contained in a briefcase which was in the safe custody of my father. He is now misusing those documents, including my bank cheque books to forge my signatures and depositing cheques in his name. These are bank accounts which have not been used for the last 10 years. My brother even may have gotten hold of some blank signed cheques which were returned by financial institutions whose loans I paid off and which were returned by registered mail to my father's address. Now, his lawyer sent me a notice that my brother had given me a "friendly loan" and I had given him blank cheques as security and that the cheques have bounced now. Can he fill out those stolen cheques in his name, put an arbitrary amount?

He is threatening to sue me by making up stories that he had given personal friendly loans to me and my cheques are bouncing now. Can bounced blank cheques (even if he claims that I gave it to him) be used for filing a case under 138. What is the "statute of limitations" in this case?


Asked on 10/23/10, 1:37 am

1 Answer from Attorneys
Rashmi Bhatia Sangare Private Practise

You should have been deligent enough to write a letter to the Police about such blank cheques in his custody. Now, hire a good lawyer to defend your case. There is limitation of six months from the date of issue of the cheque.

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Answered on 10/24/10, 10:15 pm


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