Legal Question in Banking Law in India

Re: How to be safe in cheque bounce case

In the absence of written document, it is difficult to prove the case. One chance you can try, is that when he prosecutes in court, in case he does not come to any amicable settlement by your personal approach with some good friends, is to file an application under the Oaths Act, that if he swears by putting out burning camphor, that you owe him the money represented by the cheque, you would as well pay him off the balance. If he is a god fearing man he may not consent. In that case request the court to draw adverse inference and make arrangements to prove your case by oral evidence. You have to cross examine him thoroughly and ask him to produce his accounts, ask him whether he has audited accounts,income tax assessment etc. Take the assistance of a local lawyer who is reputed to have good practice in this line.

Re: How to be safe in cheque bounce case

I believe all your contentions are matter of evidence on the court. If you have sufficient evidence to prove the same you should contest the matter. If not, then out of court settlement is the best option.

Re: How to be safe in cheque bounce case

You should consider an amicable out of court settlement.

Since you had given the cheque, prima facie you are liable UNLESS you may prove that you do not owe him any money.