Legal Question in Banking Law in India

Cheque Bounce

My father had given some singned blank cheques to the manager of a finance company who financed the vehicle purchased by my father. The Manager told him it was mandatory for financing. The manager died and then his wife tried to withdraw money from my father's account by producing cheque in her favour. Then she served a legal notice to pay the amount as cheque was bounced. how can my father defend himself from her cheating.

Raj Tiwari


Asked on 12/23/05, 2:10 am

2 Answers from Attorneys
AKHILESH S DUBEY AKHILESH DUBEY

Re: Cheque Bounce

If a cheque has been dishonoured then there is presumption that accused issued the cheque in discharge of Legally Enforceable Debt liability however, this presumption is rebuttable by accused.

As you have said that the cheque were issued for financing of an vehicle, there must be an agreement for the finance signed by your father. You can produce that agreement an rebut the allegation of the Managers wife. In absence of any corroborative evidence, please try to to prove that there was no Legally Enforceable Debt liability which is mandatory for prosecution u/s 138.

Akhilesh S. Dubey

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Answered on 12/27/05, 1:47 pm
Vivek Anand M/S.VIVEK ASSOCIATES

Re: Cheque Bounce

You need to clearly establish by material evidence that the cheques were issued during the course of availing of a loan, and is not against a legally enforceable debt, and also try to establish that the cheques have been misused by producing the agreement signed by your father and the Company.

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Answered on 12/28/05, 7:38 am


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