• Recovery of money given by cheque

I have given Rs 10 lakh by cheque to one person for starting a business in partnership. He has made a Promissory Note of the same which has been signed by both of us . He has mentioned the period for returning the money as March 2022. There is no mention of any business partnership in the Promissory Note. The note was made in March 2017. When I understood that I have been cheated I also found out that he doesnt even own a house . We were to run Country Liquor Bar in partnership .The license is in his mother's name.
Asked 4 years ago in Civil Law

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19 Answers

Hi,

Till now there is no violation of the conditions of the promissory note although you have got the information that he is not holding any property and as there is no mention of any partnership.

You have not taken due care while signing the promissory note.

Please see the exit clause if it exist and if not the please file a case of cheating and recovery of money.

Vimlesh Prasad Mishra
Advocate, Lucknow
6848 Answers
23 Consultations

4.9 on 5.0

Immediately file a suit fir recovery of money alleging fraud and misrepresentation

Sachchida Nand Pandey
Advocate, Kolkata
12 Answers

4.9 on 5.0

Started business in partnership deed but there is no partnership deed? Promissory note is till March, 2022 showing loan. The partner does not have even own house. Do you have any ID, Adhar Card, etc. Now, tell the cheque is given in mother's name or in the name of partner. Go to your bank and check in which bank and account number, the cheque for Rs.10.00 lakh is credited by him and what is the status of his account. It must have been closed. Whether he sits in the bar whose license in the name of her mother. Also let me know in detail how he has cheated you.

Dalip Singh
Advocate, New Delhi
1039 Answers
36 Consultations

5.0 on 5.0

1) There are two scenarios in your case study.

a) file suit for recovery after 2022, if he doesn't pay you amount.

b) you can take it by mutual consent talk as you were in partnership business of country liquor. Try to run business currently in full fledge and recover your money by 50,000 to 1 lacs per month with 12 to 28 months you will recover money.

Ganesh Kadam
Advocate, Pune
12335 Answers
191 Consultations

4.9 on 5.0

It would be a civil case. You can obviously claim interest.

Sachchida Nand Pandey
Advocate, Kolkata
12 Answers

4.9 on 5.0

If police turn down the request of FIR then the other way is to file a criminal complaint in the office of magistrate under CrPC 156(3) for the cheating and misappropriation under section 420 & 506.

After taking the cognizence the magistrate may order the police to investigate the matter or may order the summing of the accused.

Please be aware that the promissory note and security cheque s were given to you to just keep your eyes shut.

Vimlesh Prasad Mishra
Advocate, Lucknow
6848 Answers
23 Consultations

4.9 on 5.0

Hello sir , if the police is not registering FIR you can file a complaint case under section 200 Crpc directly in court for cheating ...secondly he has a intention of cheating from the very begging therefore he mentioned "security" word on the cheque so that it cannot be covered under criminal complaint of 138 NI act .. It is advisable to file a recovery suit against the person and a criminal compaint of cheating directly in court

Hemant Chaudhary
Advocate, Gurgaon
4619 Answers
67 Consultations

4.9 on 5.0

Dear Sir,

You should have taken legal advise before taking complicated documents. Any way you may file private complaint before Magistrate for cheating you. Secondly you may also file cheque bounce case against him after issuing notice to him to give consent present the cheque then issue another notice to him on its bounce. I can say my opinion on the the promissory note only on seeing it. Please send WattsApp copy to me. For more advise contact me on phone.

Kishan Dutt Kalaskar
Advocate, Bangalore
6050 Answers
381 Consultations

4.8 on 5.0

rs 10 lakhs is due and payable only in 2022

2) although he had given security chewier it is clearly mentombed that you need his consent to present the cheque

3) you can file summary suit to recover your dues

4) if is able to make out a case for defence suit would take years to be disposed of

Ajay Sethi
Advocate, Mumbai
87917 Answers
6207 Consultations

5.0 on 5.0

Amicable settlement is best option

2) litigation is long drawn and expensive proposition

3) loan is repayable only in 2022

Ajay Sethi
Advocate, Mumbai
87917 Answers
6207 Consultations

5.0 on 5.0

Case would be of recovery of money.

Would take almost one year if he denies otherwise 6 months.

No interest can be asked on the basis of loan kind of thing, but yes 18 % pa would be applicable on it as per law till the closure of the case from the period of money was taken.

Sanjay Baniwal
Advocate, South Delhi
5464 Answers
13 Consultations

5.0 on 5.0

You can file civil suit for recovery against him in the court of law with the help of any local good advocate. Yes definitely you will get your money back alongwith the reasonable interest rate. It will take around 2-3 years to dispose of the matter completely.

Laksheyender Kumar
Advocate, Delhi
734 Answers
2 Consultations

4.8 on 5.0

1. If there is no mention of the partnership business in the promissory note then how would you prove that the cheque was given to commence a business in partnership.

2. The amount is to be returned in March 2022 according to the promissory note. Unless the date of return is breached you have no cause of action to sue this person for recovery of money.

Ashish Davessar
Advocate, Jaipur
30761 Answers
971 Consultations

5.0 on 5.0

1) no case of cheating is made out . As money was returnable only in 2022

2) summary suit can be filed for dishonoured cheque

3) if your partner contests the suit proceedings it would take years to be disposed of

4) original documents have to be produced during trial .of original is lost or misplaced secondary evidence is permissible

5) conditional leave to defend can be given on depositing 50 per ce t of amount due in court

6) no need to attend court on all dates

7) you are not bound to accept defendant offer of settlement

8) no action can be taken on mother country liquor licence

9) if you decree in your favour you can execute decree by attachment of his property or bank accounts

10) if cheque is dishonoured for any reason complaint would be maintainable under section 138 NI

Ajay Sethi
Advocate, Mumbai
87917 Answers
6207 Consultations

5.0 on 5.0

The promissory note is an evidence for having borrowed loan.

Since he has not made you a partner in the business, you may send him a legal notice to him demanding the return of loan amount though he has mentioned that he will will return it in the yer 2022.

A loan repayment cannot be claimed beyond three years.

It will be barred by limitation until there is a renewal or an endorsement in the loan papers by the borrower acknowledging his liability.

T Kalaiselvan
Advocate, Vellore
78070 Answers
1543 Consultations

5.0 on 5.0

The cheating and misrepresentation allegations cannot be proved if they were orally made.

You may have to file a money recovery suit to recover the loan amount with interest on the basis of the promissory note.

You can even get the cheque bounced and file a cheque bounce case under section 138 NI act even though he has made an endorsement tht this is a security cheque.

The purpose of issuing a security cheque is to compensate or utilise the cheque amount in the event of default of loan repayment.

T Kalaiselvan
Advocate, Vellore
78070 Answers
1543 Consultations

5.0 on 5.0

1. Cheating case is not maintainable.

2. Summary suit for money recovery to be filed through an advocate becasue the procedures for filing cannot be explained since it varies from one place to another including the court fee for the purpose.

Generally it takes at least two years for disposal of summary recovery suit.

3. The notarised loan agreement document is very much valid in court of law for the purpose of money recovery suit.

.4. You can state that the original promissory note is held in his possession.

The 420 case may not be maintainable if you have loan agreement papers duly notarised.

5. H need not deposit the 50% amount in the summary suit for recovery of loan amount.

This rule is applicable only to the cheque bounce cases, this is a recent amendment in the cheque bounce rules

6. If he states that he will pay 1000 every month you dont accept, let him under go imprisonment.

7. No action can be taken against his licenced liquor shop.

8. He can imprisoned in civil jail till he pays the amount.

9. You can initiate cheque bounce case for the same reason since the cheque is given for security for non payment of loan amount.

T Kalaiselvan
Advocate, Vellore
78070 Answers
1543 Consultations

5.0 on 5.0

you can file suit for recovery of money please call for further discussion on

Anwar Zaidi
Advocate, Mira Bhayandar
231 Answers

4.5 on 5.0

You can file a summary suit for recovery of monies. If you have his cheque you can also file cheque bouncing case under section 138 of Negotiable Instruments Act

Prashant Nayak
Advocate, Mumbai
27247 Answers
88 Consultations

4.4 on 5.0

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