• Cheque bounce case

I given to a friend 2 lacs of cash without any proof for a small land deal in karjet in Mumbai suburb on September 2012 but because of some reason still the deal not materialized, after delaying last 2years now he agreed to give me assurance of  a Rs 2 lacs of cheque which post dated on 1st November 2014 assuring me the land deal will done before end of October 2014 otherwise I can deposit the cheque in the bank 
If I deposit the chq in the bank after the end of this month if it bounce or stop chq by the client in this case can I proceed for strong legal action against the party Pl advice.
Asked 3 years ago in Criminal Law from Mumbai, Maharashtra
1. You have no evidence that you had paid Rs.3 lakhs to your friend to file a case against him,

2. Now, since he has agreed to issue you the said cheque, accept it immediately with a covering letter wherein he will admit having collected the said payment from you for the said deal and also an instruction to deposit the cheque if the deal does not fall through with in 31.10.2014, 

3. By this you will have his admission of having collected the payment and also kliability to repay you,

4. In the event his said cheque bounces, you can file a case u/s138 of N.I. Act against him.
Krishna Kishore Ganguly
Advocate, Kolkata
18772 Answers
453 Consultations

5.0 on 5.0

Since the money was paid by cash you should first get a Receipt of acknowledgement from him mentioning that there is a deal while accepting a cheque , however the mention of the post dated cheque given to you should  not be mentioned in the Receipt.

 A cheque given as a security can not be invoked any liability under 138,  whereas it has to be a cheque issued  in discharge of liability. In your complaint you can make it that once the deal has broken he promise to pay money and issued the cheque for the same. 

    If he fails to honour the deal and pay i.e, cheque bounces you can file complaint under 138, 
  Make sure that he writes  your name and  date and amount  in his handwriting  this means all writings in the cheque should be in his hand writing.
Thresiamma G. Mathew
Advocate, Mumbai
1515 Answers
139 Consultations

5.0 on 5.0

It is for your safety of proving the transaction of having paid 2 lac rupees that you must obtain a receipt of the money paid stating that you have lent the money as a friendly loan.
Recent rulings point to the fact that the cheque issued as a security will not stand ground when you have to file a cheque dishonour case under s.138 of the Negotiable Instrument Act.
Therefore do accept the check being issued to you and insist that he does not issue a blank cheque , have him to enter all details required including your name,amount,date etc. This will make your position secure in the event of a case under section 138 of N I Act.
S J Mathew
Advocate, Mumbai
2264 Answers
110 Consultations

5.0 on 5.0

1. when a person issue a cheque then it is presumed that he has any liability against payee.

2. dishonor of cheque is an offence it does not require from payee to prove that for which reason this liability accrued.

3. issuing of cheque means liability bear by maker of the cheque against payee and payee has right to withdraw said money.

4. if cheque becomes dishonored then bank gives you the reason of  dishonor, upon receiving of that information you shall send a notice on maker of cheque to pay money within 15 days from receiving of notice. 

5. if he fails to pay money then after completion of 15 days you can file a complaint before judicial magistrate of first class within 30 days form non payment in accordance of notice.

6. in complaint you should plead that you the holder of due course because you have given him a loan without interest due to affection ( by pleading this you keep yourself away from giving any evidence in order to prove land deal because earnest money should be given in proper way be executing a deed ) 

7. it is not necessary to execute any deed in giving loan without interest to any friend, family member etc.
Shivendra Pratap Singh
Advocate, Lucknow
5066 Answers
78 Consultations

4.9 on 5.0

take a letter saying that he took money from you for the deal and same is not materialised you can deposit the cheque for return of your money paid to him.In the event his said cheque bounces, you can file a case u/s138 of N.I. Act, or suit for recovery of money or both against him.
S.P. Srivastava
Advocate, New Delhi
703 Answers
13 Consultations

4.7 on 5.0

1. According to your own statement of facts you possess no proof of having given a sum of Rs.3 lakhs to your friend. In this view of the matter, even if the cheque issued by him bounces on presentation to the bank you will not be able to prove him liable.

2. Since you do not have any proof of the amount being given to your friend you should prevail on your friend to acknowledge through a letter of acknowledgment that he is issuing the post dated cheque towards the payment of the amount given to him by you. On the basis of this letter you can recover your money with interest from him.

3, If the cheque bounces due to shortage of funds in his bank account you can prosecute him for cheque bounce after issuing a lawyer's notice to him.
Ashish Davessar
Advocate, Jaipur
23140 Answers
640 Consultations

5.0 on 5.0

Dear Querist
no need to worry, on or after 1st of Nov. present the cheque before bank for encasement, if got bounced then send a demand notice within one month from the information of bouncing, if he is not make the payment within 15 days after received the demand notice then you may file a criminal complaint against him before criminal court.
Nadeem Qureshi
Advocate, New Delhi
4880 Answers
226 Consultations

4.9 on 5.0

Present the cheque on the date mentioned in the cheque.if it gets dishonoured issue a legal notice and file a case for recovering the amount. File a 138 case also
Jeshma Mohandas KP
Advocate, Kozhikode
567 Answers
1 Consultation

4.5 on 5.0

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