Cheque and promissory note
Hai.. I'm Ravi from Hyderabad.. My query - In 2007 my mother gave 8.75lacs for Interest to a person.. In turn he gave us 3 cheques for 6lac, 1.5lac, 1.25lac and also a Promissory note for 6lac... In 2011, he repaid us 3 lac and the mistake we did is, we wrote the calculations on the white paper and gave it to him.. That is the only proof he had with him that he had paid 3 lac to us... Till now he didn't paid a single penny to us...He is a Govt employee about to retire in 1 year from now.. Yesterday he said it on our face that he is not going to pay our money back and we can do whatever we want... We are not the only one from whom he took the money.. We came to know from a mutual friend that he purchased 2 flats each for his 2 sons and also mortgaged his land to couple of people who gave him the money ( they are strong enough to get their money back ) we being soft for these many years , he took advantage of it... Couple of years back when new CTS cheques came into existence, we exchanged the 3 cheques given by him and took a single cheque for 8.75 lac in return... Now our query is, can we proceed legally against him with the Promissory note ( 6lac) and Cheque( 8.75 lac ) that we have... Our fear is what if he produce the piece of paper which we gave him in 2011 acknowledging that he repaid us 3lac rupees in the court ??
Kindly give us a solution how to make use of them... Will there be any benefit if we get EC of those 2 flats which he purchased it in the name of his sons and produce it in the court?? Our relative suggested us not to proceed legally as he is about to retire in a year and that would be no use bcoz court procedure takes a lot of time... He also said that there will be certain people who will buy such Promissory notes and Cheques from us by giving certain amount of money and from thereon they will collect the amount from the debtor.. Please tell us which would be the better process to opt.. It is not that he has no money to repay us, he has properties.. But, he only repaid to those who had good influence.. If selling away Promissory note and Cheque is an option to consider, then kindly tell us what precautions we have to take before selling them so that in future if they fail to collect the money from him, they shouldn't come back to us and torture us.. Will be waiting for your valuable advices.. Thanq in advance..
Asked 1 year ago in Criminal Law from Hyderabad, Telangana
1. It is not clear as to whether you have any proper deed of promissory note or not.
2. If yes and no date is mentioned then you can file suit for recovery of money on its basis provided you mention the date of its execution note before 3 years.
3. Similarly if no date is mentioned in the cheque delivered to you. you can file case u/s 138 NI Act.
4. Alternatively you can file case of cheating as well.
1. Are the cheques post dated, or they do not have mention of any date? Did you return any of the cheques to him when he made part payment of 3 lacs?
2. You can file a case for cheque bounce if no date is mentioned thereon. This would be in the nature of criminal prosecution. A legal notice has to precede the filing of the complaint.
3. On the basis of promissory note you can file a suit for recovery of money against him if the note is less than 3 years old.
4. Court proceedings cannot be wrapped up in days. The accused is given a complete opportunity to defend himself, so invariably they take time.
Your facts are little jumbled up. The cheque is a post dated cheque? You may file a suit for recovery on the basis of promissory note. Meanwhile you can present the cheque to bank however I don't understand if he paid 3 lac rupees already then how come he gave u a cheque of 8.75 lakh?
Thank you for your valuable advices... There is no date and name mentioned on the cheque as well as on the promissory note.. that is the reason why I've asked whether we can sell them to a strong person who has capability to collect the money from him..
He gave us 3 cheques initially, after paying 3 lac rupees we didn't gave back the cheques bcoz they are the only proofs that we have and he also agreed.. but when new CTS cheques came into existence, we requested him to take back the old cheques and give us a new cheque for the total amount of 8.75lac and he did so... Bcoz of his good behaviour we never thought of going to court against him.. But for the past couple of years we came to know that he is purchasing properties, and also clearing his debts by selling/mortgaging his lands... We literally started begging to give us our money back.. All of a sudden he gave us a master stroke by saying I'm about to retire in a year and will not pay a single penny and you can do what ever you want... :( He knows very well that my mother's health condition is not so good and can't go to a court and fight against him... :( So the only option we left with is, if it is legally ok to sell away the cheque worth 8.75lac and promissory note worth 6lac to some other person who is willing to buy so that we can get atleast some of our money back... Both Cheque and Note are not dated and not even the nam eis written on it, I think this is some what lucky for us..
Asked 1 year ago
1. You can fill up the cheque and present it for encashment to the bank. If the cheque bounces you can issue a legal notice to him and follow it up by filing a case or cheque bounce against him.
2. If your mother's health does not allow her to go to the court then she can execute a Power of Attorney (POA) in your favour to allow you to represent her.
3. What do you mean by ''sell away the cheque worth 8.75lac and promissory note''? Promissory note or cheque create certain rights in favour of an individual which are enforceable through the court. It cannot be sold away.
1. Matter is not clear from your query,
2. Why did you take promissory note for Rs.6 lakhs when he debt is for Rs.8.75 lakhs?
3. Had you taken any security against the said oan?
4. Was the cheques dated?
5.If you have undated cheques, you can file the same and file a case u/s138 of N.I.Act when it is dishonoured,
6. You can also file a recovery Suit in the Civil court,
7. What has been written in the said calculation sheet to to further advise on the matter,
8. If it is not acknowledging receipt of Rs.3 Lakhs from him then you can deny its receipt.
1. Selling away debts to Asset Recovery Conpanies are done by Banks,
2. I have not come across any such agency which buys personal loans with the instruments as cheques and PNs,
3. If you get any such buyer, it will be wise on your part to sell the loan immediately if you do not have the capability to recover your dues yourself,
4. Otherwise, you shall have to file a Recovery Suit and case u/s138 of N.I. Act as suggested in my ealier post.