promissory note is a form of legal contract. Being an undertaking given, stamped and signed, he can file a suit for recovery of the amount and prove claim relying on the promissory note under negotiable instruments Act.
Cheque bounce and promissory note case
One person tried to find a job for my sister. In anticipation that he would be paid 20lakhs once she gets job, I have signed a promissory note that I have taken 20lakhs from him with thumb impression and aadhar details so to have trust in finding job. I also have him one signed empty cheque with no date. As I am unaware of legality, I signed cheques and also promissory note. After two years, that person tried to encash the cheque and dishonored by Bank. He sent me legal notice that he will take action against me under section 138 of negotiable instrument act and ipc 420. That person never gave me money and there is no proof that he gave me money. He also doesn't have source of income or job worth 20lakhs type. He is threatening to take advantage of me Need answers for them specifically point wise 1.what all are defends to raise against him that I didn't take money? 2.what will happen on signed promissory note and cheque reason pointed by other party and what can be defended as it is signed already. 3.is section 138 of NI act is Only civil offense? How long will it take in courts to prove it wrong in general. 4.The reason mentioned by other person is I have taken money due to financial problem. But I never took or has any problem of 20lakhs and also he doesn't have any such source. What all possibilities happen now. Please reply point wise..
Asked 5 years ago in Civil Law
First answer received in 30 minutes.
Lawyers are available now to answer your questions.
20 Answers
He has to prove that there was an existing debt or liability. You have state all these things before the court as he will file a case.
You have to take bail otherwise you may go to jail. File a case against him for fraud and cheating on grounds of getting your sister a job.
You take the same defense that he tried to induce you by promising job for your sister and took the same. Contest the case on merits. He also needs to prove the amount loaned to you.
No worries. You have to fight against him to teach a good lesson.
Point 1 to 4 can be answered based upon his complaint against you and plaint filed for claim of INR 20 Lakhs.
Let him file first and then we will reply as per the contents of his complaint or plaint.
There may be two proceedings against you under section 138 of N I Act .
Criminal action 138 N I Act 1988 as amended updated.
Civil Plaint for the claim of INR 20 Lakhs.
Both are not maintainable based on the facts mentioned by you in the post.
Without license all business, profession and occupations are illegal and not valid under the law.
You have to reply to legal notice
2) deny that there is any debt due and payable
3) that cheque was issued in anticipation of him getting job for your sister . That no money was received by you
4) section 138 NI is criminal offence punishable with imprisonment for up to 2 years
5) it takes 5 years to be disposed of
1. your major defence will be his source of arranging a fund of Rs. 20 lakh,
2. promissory note and signature on cheque are able to establish that you have taken the amount however, the sourcing of the fund will play its part in the case,
3. 138 is of criminal nature and attracts an imprisonment up to 2 years
4. you have to defend the case as per the facts mentioned in the legal notice/complaint
1. You can ask him to prove the transaction by which he gave you the money.
2. You may have to adopt the same strategy.
3. Section 138 NI act is a criminal offense it may take at least two years to get disposed.
4. You defend your case by engaging the services of a prudent and skilled lawyer practicing in this field alone.
Hi
1) As rightly pointed out by you, the person presenting the cheque should prove the existence of debt/liability.
2) So, you can ask the other person to prove the fact of him paying Rs20lakhs to you (please note cash payment claims are not accepted)
3) Mere signing of promissory note and handing over of cheque does not attract Section138 Negotiable Instruments Act. To attract Section 138, there should be a debt and the cheque should be in lieu of repayment of debt.
4) 138 NI Act is a criminal offense. Generally it takes about 2/3 years for any cheque bounce case to be completed (i.e both sides presenting evidence, arguments etc).
5) All you need to win the case is that the other person did not make any payment to you and there is no debt whatsover.
Hope this information is useful.
Thanks for reply Now I got to understand in this signed promise note and cheque bounce case, that my main defence are source of funds, the mode of fund transfer which he paid to me and related proofs. But main concern here is I am a government servant and I can't reveal that I tried to offer 20lakhs bribe for getting sisters job. I want advise on some good defence for signed promissory notes and cheques. 1.can I say he is my friend and wants to start a company/startup and I signed in anticipation that my friend can show promissory note as proof as to get investment and funding from others? 2.can I use this defence that we both are friends and have signed a friendly bet of 20lakhs in humor sense and there was no transfer of money? 3.Now I understand that section 138 of NI is civil offense. What are the implications of suit and cheque bounce cases on Government servants. 4.Provide any other good defenses which I can say on signed notes and cheques. I don't want to say on my sisters job thing. Provide answer specifically to each point.
Asked 5 years ago
1) say that friend was going to give you a loan and insisted on signed cheque in advance before transfer of funds
2) that no money was transferred and no money is due and payable
3) in case you are convicted court can sentence you to imprisonment for Upto 2 years
4) if convicted you would lose your job
Please provide full contents and details of the following to answer your questions point to point.
1- Promissory Note.
2- Legal notice from your friend.
3- All cheques issued.
4- Your employment details with full particulars of designation and PSU.
We would definitely recommend solution and advice you as per provisions of Law.
NOTE:-
CHEQUE BOUNCING CASE ATTRACTS CIVIL AND CRIMINAL PROCEEDINGS BOTH.
1- CIVIL COMMERCIAL SUIT FOR RECOVERY OF 20 LAKHS.
2- CRIMINAL CASE CHEQUE DISHONORED UNDER SECTION 138 OF N I ACT 1988 AS AMENDED 2002,2015,2018,2019 UP- TO DATE.
PUNISHMENT UNDER SECTION 138 OF NI ACT IS TWO YEARS AND FINE OF DOUBLE THE AMOUNT OF 20 LAKHS .
I have already explained in my earlier response that dishonored cheque case would attract civil as well Criminal charges against you by your freind.
The points what you have discussed are not valid neither they are any strong defense.
You may have to discuss with your advocate at length about the possibilities and strategies to defend your interests.
No opinion from this platform may be of any avail when the practical situation would be different.
Hence you wait for the case to be filed by him and then discuss with an advocate to challenge the false case properly.
1) See as you said that person does not have worth 20 lakhs rupees job or does not belong cash.
2) Now he has to prove in the court of law that he has given 20 lakhs to you, if it is in cash then does he had filed ITR fro that, or transferred online transactions or DD etc.
3) Here you can check his income source or whether he had borrowed from some one else that's need to check.
4) At any cost you need to cross check his income or from were he has brought so much amount. or whether he has really given to you such big amount proof should be there.
5) So do not show that you had ask for Government job for your sister against that promissory note and blank cheque. You have to tell different reason for this transactions and it should be genuine.
1. You can say that but later if you need to prove the same you should be able to.
2. Not practical
3. It's a criminal case now. Govt servant can be accused.
4. Any defence will not help you. As the law gives presumption to the complainant that if he has your cheques you are the liability holder. You can take the same defence and state you gave security cheques
Let him file the case you will contest it but before that you have to take bail from the court.
You have to state the truth. Tell the court that your sister stated that she wanted some money and hence you did this but later on found out about it.
You simply mention that he didn't gave any money to you as he doesn't have that kind of income.
For promissory notes just declare that he got it signed from under influence of alcohol stating that he have to show someone that he can afford 20lakhs and misused it
1. Since you have signed the cheque and promissory note , then you accountable yourself for the payment of the said amount .
- The said person i.e complainant will have to prove the liability of cheque payment , and proofs of payment to you .
2. If the said amount is not taken by you , then you can show your account before the court , and the said persons will have to produce the sources of amount as well.
3. Section 138 of N.I.Act is a criminal offence , and you will have to take bail from the court , and on none appearing before the court , warrant can be issued against you.
4. Contest the case
Further questions reply
1. This will be considered as an admission of payment on your part .
2. You will have to prove , and orally not acceptable
3. If offence goes against you , then you may loose your job , until acquit in the case.
4. Depend upon the complaint filed by the complainant .
Even a blank cheque leaf, voluntarily signed and handed over by the accused, which is towards some payment, would attract presumption under Section 139 of the Negotiable Instruments Act, in the absence of any cogent evidence to show that the cheque was not issued in discharge of a debt.
Dear Sir/Madam,
One more defence available to you is the forceful signature or no signature by you and forging by the said person. The defences mentioned by you will not be tenable in the court and you will land in problem, if you say so. Hence, you are suggested to utilise the option of the theft of the check and forged signatures as well as no transaction at all with him.
- As per the information mentioned in the present query, makes it clear that you have been informed little away from all what you would have been asked for.
- I would like to apprise you that the offence is criminal not civil for cheque bounce under NI act.
- You will have to get the bail on the first date of hearing if they happen to file a criminal case against you as the same is bailable offence, you will easily be getting bail from the court itself on first date.
- Yes, you should say that you have the cheque to him and promissory note that he wanted some surety as if he arranges the money for you which you wanted for construction of house, buying new house, start a new venture (who had some plans in mind) etc.etc., else you have been supported by the defence of his non source of income.
