I had taken a loan of INR 229000/- from a person for a request to a friend. I had signed the promissory note and had given a cheque for INR 229000/- to be kept as security to the lender. In the promissory note interest column was mentioned as - (hyphen) as we agreed on no interest. As my friend wasnt repaying the loan and i had committed to the lender as borrower, i had made a repayment of INR 108000/- and agreed to pay the remaining amount. The lender now is not accepting the remaining amount and is demanding for interest of 4% P.M on the total amount till date (3 years have passed since the date on promissory note). I am willing to pay the remaining balance without interest as agreed in the promissory note but the lender is threatening me of filing a NI Sec 138 case by bouncing the cheque given to him as security. Please suggest what should i do ?
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There is no agreement to pay interest
you are not liable to pay 48 per cent interest
3) in event cheque is deposited and legal notice issued on dishonour of cheque send detailed reply denying allegations made against you
4) contest false case on merits
See pay the complete cheque amount keep proof of same in case he file a complaint or send a notice of 138 NI same can be contested and the proof of payment can be attached further now the lender cannot impose the interest now even by cheque amount he cannot enforce that.
1) Send him legal notice and mentioned all points of promissory notes and security cheque that should not be deposited in the bank.
2) Than ask him that he can deposit cheque and let it bounce you can give stop payment instructions to bank. So the bounce reason will not arise on the cheque return as insufficient balance.
Thank you for replying. There are more queries regarding this, please provide your valuable suggestions 1) INR 108000/- payment was made in 9 installments (4 installments out of my bank account, 5 from my friend's account). My friend is willing to certify that these payments were made for the part repayment of actual INR 229000/-. Will this 5 installments paid by my friend's account through NEFT be an issue in me claiming as my payment ? 2) What is the best mode of payment of the remaining amount as the lender changed address and refused to give latest address. I have his bank details which he shared through whatsapp and email for which i had already made part payment through NEFT. I am planning to make the remaining balance payment in a single payment via NEFT or UPI. Is it suggested to pay via NEFT or should i issue a cheque or DD (but i dont have his latest address) 3) After making the complete payment , how do i recover the cheque of INR 229000/- issued as security and the original promissory note. If the lender refuses to give the documents with an intention to fraud by depositing the security cheque, what are my legal options available ? 4) i do not want a criminal case to be filed on me as it is a risk to my current employment and i might lose job. So in order to demand for the originals after making payment, can i send a legal notice through my lawyer on email or whatsapp requesting for original documents? 5) should i take a "loan closure" kind of letter for closure of the loan from the lender, if the lender refuses to provide originals and says he will self destroy them ? If yes how do i take the closure letter
Yes, for your safety side you can send him legal notice on his email address and whatsup too further you can ask him his residence address.
Mention all details whichever are in your favor, plus mention point that closure of loan and destroying security cheque at his end or returning back that cheque to you.
Hi,
You have not given for what amount of money, you have given the cheques. To prevent evil design of that person, you may file the complaint against him for black mailing.
1) you have to explain friend made payment on your behalf
2) make payment by NEFT transfer
3) file police complaint against person refusal to return the security cheque
4) you can send legal notice by email to return your original documents
5) loan closure letter has to be provided by lender on repayment of loan
1. You need show them part of same transaction though he can dispute them
2. Make payment through NEFT.
3. Send a legal notice for the security cheque giving details of payment and asking back promissory note and cheque.
4. Yes.
5. Ask him for originals and noc for clearance.
Hope you have receipt of repaid amount. About rest amount, If he is denying no issues to you. May be he will use cheque , when it will bounce , notice will issue to you than reply to notice that you already paid this much amount and rest he is not accepting. You will absolve from any liability.
Don't pay interest if there is no clause mention in promissory note.
Engage expert lawyer and contest the case on merits.
Dear sir
As you have paid 108000 from the total amount and you have proof of these transactions.
As you have the bank account details of the lender and you are willing to pay back the full amount. Then just go ahead with this step and mention in the transaction detail that Full and Final Installement of loan against cheque no....... And promissory note
After that apply for stop payment of cheque in bank. And Even after that if he presents the cheque to your account and file a case of Section 138 NI act you will have proofs Tht you paid the loan. And his petition will going to get dismissed when you present the proof of repayment of loan in court and
The cheque date he will mention would be upto max 6 months old and I worst case scenario you have to pay only interest of maximum 6 months. That too will be of 9 to 12% per annum.
In that you need to contest the said criminal complaint. You can file for quashing the complaint in hc if you feel that prima face case is not made out
Dear Querist
Immediately issue a legal Notice and demand your cheque back and also informed to lender that you are ready to make the payment of balance amount.
after your notice, he can not take any legal action against you. stop the cheque, in case of presentation of cheque for encasement the cheque got bounced and when he send a notice to you than reply the same with all the facts and circumstances of the matter.
if he is willing to file the case against you for the offence of 138 of N.I.Act then go ahead fight the case on merit, you will win the case as you have a promissory Note and that cheque will be consider as a security.
save the paid amount's detail which will be beneficial for your case.
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