Legal Question in Banking Law in India

Harrasing on cheque dishoner
sir,
I had borrowed RS 5 lakh money from one of the lender and who is my friend, I made the payment of Rs 3.5 lakh and paid intrest of 10%for 2 yrs, now Iam unable to pay him 1.5 also the intrest for this amount due to some financial shortage, now my friend has deposited two cheques which was issued at the time of borrwing money as a security check which are blanks.In spite of 3.5 lakh rupies paid now he has deposited the two cheques which got bounced in the inactive account this account was inactive since 2 yrs and the cheque was also issued 2 yrs ago. he has deposited the cheque of RS 2.5 lalks and 3.25 lakhs but I have to pay him 1.5 lakhs only, the cheques got bounced 3 weeks aga still he has not sent any notice to me but what I feel here he is cheating me depositing 5.75 lakhs cheque which is not true. Please help how I should follow this issue and should I need to worry if he file a complaint u/s138 or I should be relaxed, one more thing is he is not a register financiar and he will not do any thing in documentation whether the money taking back or lending, but he is harassing me now a days and I want to talk him personaly and settled the matter he is not ready to pick the phone and I have not seen his residence also.

Asked on 2/20/09, 12:57 am

4 Answers from Attorneys

Pranav Desai PD Legal & Associates

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Re: Harrasing on cheque dishoner

Yes, you may not worry if he is not a registered financier and does not have any document to that effect. However, as a matter of abundant caution you may issue him a notice informing him that the cheques are being misused and the same should be avoided.

Answered on 2/21/09, 5:40 am

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J. Radhakrishnan independent Practice

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Re: Harrasing on cheque dishoner

whether or not your creditor is a registered financier hardly matters for his proceeding against you on the bounced cheques. He has 30 days time to issue notice from the date of receipt by him of the bouncing of cheque. now that so far he has issued you a notice, better preempt any action on his part by issuing notice through the lawyer that the cheques are no longer valid and they have been given blank as security and that you do not owe him the amount of the cheques, you having discharged your liability to the extent of 3.5 lakhs out of the total sum of Rs.5 lakhs you owed to him and making suitable arrangements for paying the balance.

Answered on 2/22/09, 12:28 pm

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Sudershan Goel India Law Offices of Sudershan Goel - Advocate

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Re: Harrasing on cheque dishoner

You may need to settle the issue to avoid your criminal liability; you cannot escape your liability on the ground that he is "not a registered financier". you cannot derive any benefit of this situation. If you do not settle the matter, you may have to suffer a jail term.

Answered on 2/20/09, 7:20 am

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