Legal Question in Credit and Debt Law in India

Blank cheque, duly signed issued to broker

I issued a cheque in 1999 to a broker, located in nagpur , without filling amount or date, against purchase of shares. Broker did not buy any shares but presented cheque to my bank in Dec 2000, after filling Rs. 7 lakhs as the amount. Cheque was returned by the bank for insufficient funds. Broker issued a notice but deliberately sent it to my old address at Nagpur . The notice was returned by post with reason'' not claimed'' Broker has filed complaint under sec 138 of NI act, in 2001 and I received Court summons in 2008 at my Nasik address . The notice was sent to my earlier address in nagpur, which I left and migrated to nasik in year 2000. Now broker is harrassing me to extract money or I have to face prosecution . How can I prove that a) I did not receive the notice at my changed address / residence in Nashik & b) there was no debt due by me nor any liability to broker . Will my defence stand in court , if I prove that I was not residing at the address to which notice was sent , by introducing witness of my landlord, where I stayed from 2000 till 2008, which is Nashik


Asked on 11/15/08, 6:16 am

2 Answers from Attorneys
Sudershan Goel India Law Offices of Sudershan Goel - Advocate

Re: Blank cheque, duly signed issued to broker

Yes, you have a very strong case.

If the facts given by you are correct, you may consider filing a CRIMINAL COMPLAINT against the broker.

You may also consider filing a civil suit against the broker claiming damages for 'black-mail' and 'mental harassment'.

Once there is no 'debt', you do not have to worry about the criminal case. You will get an opportunity to cross-examine the broker and bring on record information about the 'consideration' against cheque issued by you.

You should immediately consult a local lawyer alongwith all the documents you have.

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Answered on 11/15/08, 7:48 am
Nasir Butt Nasir Law Associates

Re: Blank cheque, duly signed issued to broker

As per facts you stated, no liability you owes, therefore no need to worry. You have wide range of defence, if the complaint is brought against you. Written Statement and Cross Examination are the forums which will benefit you.

You may also file damages petition as well as petition against harassment.

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Answered on 11/15/08, 12:56 pm


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