They cannot file any criminal case of cheque bouncing in this case. They may file civil suit if you have some dads property for the same
Payment Recovery after Father's death
My late father gave business loan of Rs.10L via cheque payment to a person in October 2017 for period of 6 months and after 6 months he should pay 13L. Agreement with registered NOTARY is also there. As a safety Dad took 2 cheques of amount 10L and 3L(both on Dad's name) and his Ford Ecosport car's papers. Same is mentioned in agreement. He repaid 2.5L but remaining amount he failed to pay. Afterwards he requested Dad to extend period for another 6 months for which he will pay another 3L. As a security he gave 1 signed *blank* cheque to Dad(no name,date,amount,etc). Dad met him in Septmber 2018 regarding same and he mentioned that he don't have payment at that very moment but he will repay whole amount in couple of moths. In November Dad passed away and after all the formalities I met him in January. He briefed me about whole stuff and requested for time to do repayment. He mentioned that he brought 1 property and agreement is made on the name of my cousin as Dad asked him to do over phone. After selling that property amount will get credited to my cousin's account and from whom I should take. I called him and met him multiple times stating that's not feasible as we've dispute with cousin and the story which he mentioned is not written somewhere. In the meantime, I deposited 10L cheque in Dad's bank account and as expected it bounced. I need suggestion as to how I can take action on them(person who borrowed loan and my cousin who is also 1 of the witness as mentioned in agreement) Thanks, Prashant
Asked 6 years ago in Criminal Law
Religion: Hindu
17 Answers
Issue Legal notice of cheque bounce and demand payment, failure to which file cheque bounce case and criminal complaint of cheating simultaneously.
In cheque bounce case, all you need is to prove money given to him or if given in cash than father`s financial capacity to lend 10 lacs.
Keep the agreement intact, no need of it at present.
issue legal notice to borrower to pay balance amount of loan with interest
2) if he fails to pay file summary suit under order XXXVII of code of civil procedure to recover money with interest
See in case you have to file a recovery suit to recover the amount from the said person as legal heir of your dad, since the cheque is credited after demise of dad in his account same is not valid.
Also you can file a case of cheating and breach of trust against that person.
issue a legal notice through an advocate and file recovery of money suit along with interest.
If you can take the cheques in your name then it will be good.
You have option of filing cheque bounce case and/or civil recovery. Both are good options.
you shouldn't have deposited the cheque in your father's account.
since the account holder is expired, the account should be closed now,
however, a civil suit for recovery can be filed against the said person by you and other siblings. mother being legal heir of your deceased father
Thanks all for your answers. I just wanted to clarify that I have total of 3 cheques out of which one cheque is blank(signed). Can I deposit this cheque on my name? If yes, What amount can I claim? Can I add till date interest? Will it be a cheque bounce case then? How much time it will take and will I get legal expenses back? Thanks, Prashant
Asked 6 years ago
Better go for actual recovery.
You can fill the cheque but how can it be in your name as loan was given by your father, Issue will get complicated. Legal heir of payee can bring action on the basis of the cheque to recover the amount due.
You can deposit cheque in your name for only amount due and payable
in case cheque is dishonoured file complaint under section 138 NI
See you can write date and name and can deposit and can ask the amount back. Donot add interest in the amount as dad was not a money lender and asking interest about license is offence.
You can put the amount in the said cheque and of it bounces you can send legal notice under section 138 of Negotiable Instruments Act and then file a case under negotiable instruments Act
you can deposit cheque without interest incase if cheque bounced immediately issue a legal notice and file case u/s 138 ni act.
You can initiate cheque bounce case as a legal heir and on behalf of other legal heirs also.
Additionally you can file a money recovery suit also.
You discuss with a local advocate and proceed.
Since you are not the lender you cannot fill up the cheque in your favor but you can write your father's name and initiate appropriate legal action for recovery.
You consult an advocate in the local for all further clarification and procedures in this connection.
1. The said cheque was drawn on your father's name who has deceased.
2. You can not deposit the said cheque and if dishonoured, can not file a case u/s138 of N.I. Act.
3. It is not legally proper to take interest at a rate higher than what has been prescribed by the RBI and for lending money commercially, one shall have to have license from the RBI. So, the said agreements entered in to by your father and that person will not pass the scrutiny of law
4. Best course of action for you shall be to take a fresh cheque from him and a letter admitting that he had taken the said amount from you for which he has given you the said cheque.
5. Keep provisions in your accounts to be able to show later on that you had withdrawn the said amount.
6. Do not mention anything about interest. Take the cheque adding the interest.
7. Deposit the cheque on the schedule date and if it bopunces, file case u/s 138 of N.I.Act,
8. Otherwise you have the option to file a Recovery Suit against him for recoverying his debt on your father being his legal heir.
Dear
You cannot file the case of NI act for the cheque bounced on your father account.
But you can send him a legal notice to repay the money with in 15 days. And can file a recovery suit Under order 37(Summary procedure) of CPC.
And yes you can present the Blank cheque in your account by filling the remaining amount payable to you by that person.
And after cheque bounce can initiate proceedings under section 138 NI act.
