Legal Question in Banking Law in India

Cheque bounce

Sir,

I had borrowed money from one of my friend who was introduced to him by other friend, when I was constructing home I was needed some money in a hurry so I borrowed money from him and he told me while lending money that he is lending money to me on belahf of some other lender which till now he has not revealed his comlete details to me while lending money he had asked me to issue cheques , every month I was paying him intrest of 10% to amount RS 5Lakh till 1.5yrs, later he forced me to pay the principal amount so I paid only 3.5 Lakhs in the month of July and Aug 2008 and from that time I have not paid him principal(1.5 Lakh) and also intrest of whatever amount.Now this person has deposited the check in the banck which I was using in 2006 and since 2 years that account itself is inactive now I recieved 2 SMS from that account on Feb`09.

Now my query is this person does not have any liability for what purpose the money paid and he is not registerd financiar.

Still he has not sent any notice to me and the cheque got bounced on 4th and 17th Feb, but for 4th Feb I have not recieved notice and I think he has crossed 15 days of time.

Please help me what should do to overcome this trauma.


Asked on 2/19/09, 12:18 am

4 Answers from Attorneys
J. Radhakrishnan independent Practice

Re: Cheque bounce

He has 30 days time to issue notice. Better issue a notice through lawyer explaining the correct position and make suitable arrangements for payment of the correct balance due to him according to you. No use in throwing the question in this forum

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Answered on 2/22/09, 12:34 pm
Aniruddha Pawse Aniruddha.P.Pawse Advocates

Re: Cheque bounce

contact personally if possible Consulting chgs Rs 100/- only.

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Answered on 2/19/09, 3:02 am
SHIVA SHANKAR REDDY M/S S&S LAW FIRM

Re: Cheque bounce

When your liability is discharged then why do you take unnecessary tensions because you can easily establish the very fact of repayment and also you can file a case against the unlicensed money lending business in the police station as that leads to severe action by police.

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Answered on 2/19/09, 5:52 am
Sudershan Goel India Law Offices of Sudershan Goel - Advocate

Re: Cheque bounce

The payee of the cheque may take appropriate action against the drawer under section 138 of the Negotiable Instruments Act. You may try to settle the matter out of court to avoid any criminal liability.

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Answered on 2/19/09, 9:26 am


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