Legal Question in Credit and Debt Law in India
I borrowed one lac from a person and later issued a blank cheque to him. I have received notice under section 138 of negotiable instrument act where the person has filled 8 L Rs. and got the cheque bounced.
How to handle this situation? Can I fight on the basis that the cheque was given only for security purpose.
Asked on 10/22/09, 2:52 am
1 Answer from Attorneys
Seshadri Srinivasan
www.lawconcern.com
Why did you issue a blank cheque? You cannot say the cheque was given for security purpose, but you can prove that you took only Rs 1 Lakh as loan and therefore liable to pay that amount only with interest.
Answered on 10/22/09, 3:51 am
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