Legal Question in Banking Law in India

Subject: My processing fee cheque for house loan processing bounced.
How Can I protect myself from any legal action by the bank. (HDFC Bank)
Detail: I applied loan and gave them a cheque for processing fee. Agent of bank assured me that the cheque is charged only if loan is sanctioned.
I received mail from bank that loan has been sanctioned "In Principal" on Saturday, 20th November . Though I did not like the term "In Principal" I transfered enough money same day to relevant bank account.
I had not kept enough money there earlier because I did not want them to able to encash cheque by mistake or by dishonesty, before they give me sanction letter and sanction loan to my 100% requirment.
Since it was a saturday, money reached my account only on monday, 24th November.
BUT Bank had put cheque for encashment on 19th Only, 1-2 days before sending me a sanction email. Now since cheque bounced, they are threatening me a legal action.
Please advise me how to protect myself.

Asked on 11/25/10, 9:23 am

J. Radhakrishnan independent Practice

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0 attorneys agreed

Ask the Bank to present the cheque again and request them to sanction the loan

Answered on 11/25/10, 3:59 pm

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