• Blank cheque given as security deposit moneylender harassing

Hi my mother borrowed money from different money lenders to give my college fee for which she was charged hefty interest such as 10% per month she gave her blank cheque and blank  stamp papers as security deposits  as she trusted them that they will return cheques once there debt is cleared and will not misuse them.moneylender's were happy my mother was paying their huge interest for 2 years that has been doubled the amount which was borrowed originally so in literal terms the moneylenders already got double the amount of money  that my mother borrowed from them till now but we got into financial crunch because of continously paying huge interest amount for more than 2 years my mother  asked them she is unable to pay any more interest all she can do is pay the principal amount in installments for which they refused and filled the cheques with double than original amount and filed case against  us .we hired advocate but he says that we have to pay the amount as we don't have any written receipt of money given to moneylender my mother is so much tortured mentally that she is at verge of commuting suicide I know she made big blunder by giving blank cheques  and stamp papees only with signaturesome without even date mentioned on them and no written receipt or agreement  from moneylender but what to do as she already took  huge bank loan to pay off their interest not in condition to take more loan to pay their fraudulent amount filled in cheque don't know what to do please help and suggest
Asked 3 months ago in Civil Law from Sriganganager, Haryana
1) since your mother has issued blank cheque to money lender and given blank stamp papers the money lender has filled in details and presented the cheques

2) your mother has to contest the case filed by money lender

3) in her defence take the plea that there is material alteration of cheque . date and amount has been filled in by the money lender without her consent 

4) make an application that cheques be referred to Central Forensic Science Laboratory ('CFSL') for its opinion on the handwriting on the cheques.

Ajay Sethi
Advocate, Mumbai
23328 Answers
1220 Consultations
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1) rely upon judgment of delhi High  Court in BPDL Investments (Pvt.) Ltd. v. Maple Leaf Trading International (Pvt.) Ltd. that  if there are material alterations in the cheque then such an instrument is rendered void and could not have been presented for payment to the bank.

2) Supreme Court in Kalyani Baskar v. M.S. Sampoornam held  that every possible assistance should be offered by the court when an accused in a complaint case seeks directions to refer a disputed cheque for the opinion of a handwriting expert.  Supreme Court held that where a cheque was doubted as to its authenticity, the trial court ought not to refuse the request of the accused sending it for the opinion of the expert.
Ajay Sethi
Advocate, Mumbai
23328 Answers
1220 Consultations
5.0 on 5.0
 Section 87 NI Act reads as under:

Section 87 - Effect of material alteration Any material alteration of a negotiable instrument renders the same void as against anyone who is a party thereto at the time of making such alteration and does not consent thereto, unless it was made in order to carry out the common intention of the original parties;
Ajay Sethi
Advocate, Mumbai
23328 Answers
1220 Consultations
5.0 on 5.0
1) there are judgments that when blank signed cheque has been issued by the drawer he authorises drawee  to fill in details as to name , amount and it does not amount to material alteration of cheque 

2) your  objective is to delay the case so that the money lender agrees to compromise 

3) cheque bouncing cases take 5 years to be disposed of 
Ajay Sethi
Advocate, Mumbai
23328 Answers
1220 Consultations
5.0 on 5.0
1. It was a terrible mistake of your mother to repay the amount and yet not obtain receipts or acknowledgments from the money lenders. Be that as it may, a blank security cheque can be filled up and presented to the bank by the person who is secured. Your mother can contest the cheque bounce prosecution on numerous grounds. If there is no written agreement between your mother and money lenders then the latter cannot prove the liability of your mother to pay the interest for which they filled up and presented the cheques. In a cheque bounce prosecution there are so many potent defences which the accused may take.

2. The person who is secured through a blank security cheque can fill up the payee name and date on the cheque and present it to the bank.

3. Your lawyer is the best person to advise you as unlike us he has perused the complaint filed against your mother.
Ashish Davessar
Advocate, Jaipur
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449 Consultations
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your mother  has to contest the case on merits . .

2) plead not guilty

3) trail would take around 5 years . 

Ajay Sethi
Advocate, Mumbai
23328 Answers
1220 Consultations
5.0 on 5.0
our mother  has to contest the case on merits . .

2) plead not guilty

3) trail would take around 5 years .
Ajay Sethi
Advocate, Mumbai
23328 Answers
1220 Consultations
5.0 on 5.0
Without any evidence she cannot take a stand that this cheque was issued for security purpose alone.  Moreover the stamp paper or promissory notes she executed will go against her, hence she may request the complainant to restructure and pay the amount accordingly or she has to engage a more skilled advocate (by leaving this one), and challenge and drag on the case to some extent by which the complainant may come down for some negotiation.
T Kalaiselvan
Advocate, Vellore
14138 Answers
127 Consultations
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But sir  payee  name and date on cheque written by someone other than account holder also come under material alteration

This can be challenged during trial proceedings.
T Kalaiselvan
Advocate, Vellore
14138 Answers
127 Consultations
5.0 on 5.0
But she has given blank stamp papers as security deposits with blank cheque and they are just asking amount filled in cheque  not including the interest part in there statements.Is there no way to fight our case


There is a provision in law to fill up the duly signed bank pro-notes/cheques, hence he mat take shelter under that law. 
However this also can be challenged during trial.
T Kalaiselvan
Advocate, Vellore
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127 Consultations
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There is surely a way to contest the case. So show the complaint to a lawyer whom you will have to engage for your defence.
Ashish Davessar
Advocate, Jaipur
18167 Answers
449 Consultations
5.0 on 5.0

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