If you have proof to support your claim of payment against the agreement in support to your evidence other wise it may be difficult to prove and liability may be fixed.

1. Reply to Legal Notice, with evidence /details, that you have paid the cheque amounts and that you are not liable for any payment for the cheques and that opposite party fraudulently misused the cheques, to extort money and to intimidate you, which is a breach of trust.

2. You will need to do your homework, by collecting all evidences and witnesses, in case the opposite party files a cheque bouncing case in magistrate court. This will be required for your defense, during court proceedings. 

Do you have any proof of Cash Receipt .

The cheque was given by you for money you must have taken. Therefore he will fike a case under NI Act if you don't pay back. Pay him back the money.

You have to reply the said legal notice though your advocate after briefing him the facts of the case. If there is any way out, he will let you know there and then and if there is any lacuna, he will also inform you.

If you paid them some amount then you must be having dome receipt or the same. Otherwise how will you prove that you had discharged the debt.

- Since, you have made payment in cash & also in the bank, hence you should reply the said legal notice , after mentioning all the proof of the payment , and thereby ask to return the given cheque. 

- You should send reply after mentioning that , the said cheque was given for security purposes, and not for payment , and hence you are not under obligation to pay the amount of the cheque legally , as you have already made payment in full and final. 

Do you have evidence of payment made in cash 

2) any receipt issued 

3) you must deny allegations made in legal notice 

4) take plea full payment made by you 

Reply to legal notice through lawyer 

Dear querist,

Since you have received the legal notice, then you have 15 days to reply to the legal notice. I would suggest you to give them a befitting reply. In case, if after the reply they file the case then it will be your defence that you owe no liability to the cheque amount. Thats a afterthought. First give a befitting reply.

you can contact me for sending the reply to the legal notice.

regards,

Yuganshu Sharma

Advocate

If you have paid the amount in cash then they can't file a case of cheque bouncing for said amount

1. share complete details,

2. must reply the legal notice,

3. as per the latest high court judgment "non-reply to the legal notice build presumption in favor of the complainant" 

Hope you have receipt / acknowledgement for the payments made in cash, the same will support your defence.

Collate all the details of making payment in cash, in bank and acknowledgement of your counter part.

Immediately reply to the said legal notice denying all allegations made in the notice through an Advocate only.

See you need to reply the legal notice and give proof of payments that amount is already paid there is no legal debt and cheque given in security are wrongly used. 

See you can reply same with help of Advocate and deny having any legal debt. 

1. Since demand notice has been served on you it is imperative that you reply to it through your lawyer.

2. The payee or holder in due course will file the cheque bounce case in court within 30 days from the expiry of 15 days period given in the notice. You will have to contest it to prove that cheque was not issued in discharge of a legally enforceable debt or the debt was cleared subsequent to the dishonour of cheque.

Hi

Present the proof of giving the money back in cash to the party.

Send a reply of notice stating that the money have been paid back.

Do attend the court and prove your version. 

Thanks 

Do you have payment proof ?

As you know cheques are negotiable instruments, which are payable on demand. When there is unsuccessful processing of cheque due to insufficient funds, incorrect amount or mismatch of signature, the cheque bounces. Most of the cheques bounces in India are due to insufficient funds. When the cheque bounces, the payee has to file a legal notice within 30 days of return memo from bank. After this, if the drawer makes the payment, there is no need to file the case. If he doesn’t make the payment then case has to be filed within 30 days.

I'm dealing with such cases in Hon'ble Supreme Court. Supreme Court recently held that the burden of proving the due amount should not be on the complainant as if he has to prove a debt before a civil court. Rather, the burden to rebut the presumption of debt in cheque bounce case (under Negotiable Instruments Act) is on the accused. The apex court’s observation came in Uttam Ram vs Devinder Singh Hudan & Anr. A dishonour of cheque carries a statutory presumption of consideration. The holder of cheque in due course is required to prove that the cheque was issued by the accused and that when the same presented, it was not honoured. Since there is a statutory presumption of consideration, the burden is on the accused to rebut the presumption that the cheque was issued not for any debt or other liability. 

As their is a agreement involved in your case and also the legal notice so it is better to discuss in detail with complete facts. 

You may contact my secretary to connect with me for clarification. 

Gopal Verma,

Advocate-on-Record & Amicus Curiae,

Supreme Court of India

If you have paid the cheque amount subsequently then you may inform them about this in writing and demand them to return the bounced cheques. 

Then you may issue a reply notice denying their allegations and furnish them the details of payment made and demand the return of bounced cheques.