My brother has taken a loan of INR60,000 from a local financier and issued him a blank signed stamp paper and blank signed cheque. He paid in INR20,000 and later failed to pay him due to his financial situation. The financier was charging him monthly interest of INR 3 per INR100 borrowed. Financier claims that he had given loan of INR2,00,000 in cash to my brother which is now INR2,50,000 with simple interest of 6% per annum and has filed a case against him under Negotiable Instrument Act. I came to know about this case from my brother recently. I have offered INR110,000 to financier to discharge debt. He declined as he holds the cheque and stamp paper. I do not want my brother to jail for a day. I want to contest the case even if required in superior courts. I am ok to deposit full amount of claim in court under protest if required. Please let me know what are the options available.
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1) how was Rs 60000 given ?
2) by cash or cheque ?
3) did your brother sign any receipt that Rs 60000 was received ?
4) financier has to prove Rs 250000 is debt due and payable
5) you can contest cheque bouncing case
6) contested cheque bouncing cases take 5 years to be disposed of
See at this stage you can engage an advocate to contest the 138 NI complaint , in reply the advocate can contest that there is no legal debt of your brother and there is nothing on record to support the claim by financer.
Further the advocate can dispute the claim in cross examination once debt is disputed at this stage brother shall be out of the matter.
1) Your brother has not signed promissory note, so your brother can file case against them raised false allegations against him.
2) Narrate all things that blank cheque and stamp paper signed force fully and fraud , misrepresentation etc.
1)You should contest the case on merits.
2) engage a senior advocate who have experienced in Cross examination.
Your brother has to defend the 138 negotiable instruments act complaint by pleading not guilty
As per a recent amendment to the act the complainant can make an application to court for deposit of 25% of claim amount with court as and by way of interim relief
The matter will go in trial where your brother will have to produce all cogent materials and evidence in support of his case that he is not liable to the amount as claimed by the complainant in his complaint
The complainant can also file a summary suit in civil court against your brother
In that your brother can take out an application for leave to defend when he is presented with court summons for passing judgment against him
If the plaintiff fails to prove his claim then his case will be dismissed
Your brother can also file a cross criminal complaint against the lender on the ground that he manipulated the figures in the cheque and stamp paper and is attempting to extract more from him so as to arm twist him
1. Well, since he had borrowed money , he is obliged to make the payment.
2. As the cheque was dishonoured the drawee is entitled to file case under NI Act and the signed stamp paper will prove that the cheque was drawn to discharge a valid debt.
3. So if the case proceeds then conviction of the your brother is certain. hence offer the balance money to the creditor in lieu of which he may withdraw the case.
Rest, you are free to contact me anytime for further legal assistance on this issue.
Good Luck...!
What ever he is saying any where else deny immediately that your brother has taken Rs.2,00,000/- as loan from the person concerned, simply the person is black mailing your brother, if he is a licence holder for the purpose then will contest the case otherwise not, do one thing more that lodge a complaint with the nearest police station against the person concerned that by way of false presumption that your brother has taken Rs.2,00,000/- as loan the person is blackmailing your brother. Now the question of blank cheque and signed papers will come before the police during the investigation then he will place the papers before the police and truth will come out then you simply say that you are ready to return the money otherwise deny there also by saying that the signature on the paper and cheque are forged one, so do it immediately and try to solve the matter immediately.
1. It was incorrect on the part of your brother to ihandover a signed stamp paper to the lender for which he can write any amount on it as taken loan by your brother as admitted by him and then notarise the same for making it a legal document.
2. However, he can claim that the said amount is exaggerated and argue before the Court that those were the security cheques for which section 138 of N.I. Act is applicable.
3. He can also take the stand that the lender will; not be able to prove payment of the exaggerated amount as the your brother's dischargeable liability.
You can contest the case and in trial falsify his case in cross examination. Presently the negotiable instruments law is become a tool for recovery and harrassment where the amount in blank cheque is written exhoribitantly and the person is blackmailed. You can win the case is nice contested. I have got acquittal to my client's in such type of cases.
You cannot fight on behalf of your brother.
You can engage a skilled advocate to fight for your brother in the court.
The chosen advocate may be instructed with the facts of the case, background and also with the documentary evidences supporting your case.
