Legal Question in Consumer Law in India

I am not disclosing the actual names here.

My mother had signed a guaranter's agreement for a personal loan of a person X from ABC Investment & Finance Pvt. Ltd. Later on my mother also took a personal loan from the same firm.

My other had given 24 cheques for the EMIs of her loan (12 cheques of bank A and 12 of bank B). Later on the account with bank B was closed so, my we had paid 2 EMIs in cash and gave them 10 cheques of bank C as a replacement for the cheques of bank B.

By this time the person X had started defaulting on its EMIs. The firm ABC did not return the cheques of bank B and also threatened my mother when she went to give cheques of bank C that they would use her cheques (they took all blank cheques in the beginning) to get the outstanding of person X, so my mother filled the EMI amount (Rs. 2000) in all the cheques of bank C.

They used those EMI cheques of bank B and filled the outstanding amount (a huge amount) of person X and that cheque was dishonoured as the account was closed. Now they have lodged a case under Negotiable Instruments Act Section 138 against my mother.

What should we do? Please advice.


Asked on 9/13/09, 1:12 pm

1 Answer from Attorneys
Sudershan Goel India Law Offices of Sudershan Goel - Advocate

Try for an amicable out of court settlement.

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Answered on 9/13/09, 2:54 pm


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