Legal Question in Banking Law in India

My father had taken an unsecured loan from a family friend against it he had given some blanked signed chq as an security. My father has not kept any record of those chqs neither any agreement was signed between both of them.In between there was an dispute for which we have setteled in Oct, 2010and paid the final amount, against which his friend has returned the security chq.

Now his friend is claiming that he has kept some chq under his custodey and if we do not give him some more money then he will present that chq in the bank and file a case against the negotiable instrument act for cheque return. Kindly advise is it possible for him to do such case where in there is no agreement for loan taken Or is it safe to stop all the cheques?


Asked on 1/13/11, 4:51 am

1 Answer from Attorneys
Vishwa Arya Arya & Co.

from the statement of account and the cheques received back you will be able to precipitate the cheque., if any, with the friend. His call could be bogey also. Be as that it may, you should be able to contest in case he misuses it. I hope you have some evidence of settlement you made in october 2010. you will have to give reply to his notice if and when he sends to you.

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Answered on 1/13/11, 6:04 am


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