Dear sir My dad who expired on 2014 had issued a cheque in favour of someone Rs 1 lac .. However my dad has not at all kept any record of such transaction in his business journals nor in any records. noneither he told anything to us before he expired , as he was effected through cancer he gave us all detail of his debtor and business before he died..and properly handed over the business.. Today one person came to me and said my dad has issued a cheque in his name of rs 1lac and he gave my dad that amount... he is claiming that amount on the basis of that cheque, ..What i came to know from my mother that the person used to lend my dad in 2010 with a monthly interest of 2% per month and my dad have repaid all the amount with interst to him.. there was no such due from him but yes my dad may hav forgot to collect back the cheque from him while returning that amount... when i asked the person same question why you are presenting the cheque after two year of expiry he said that he dont want to give pressure to me as i lost my dad..and he can go for a legal way May i know the legal possibilities of that cheque? are we bound to pay the amount of cheque which was drwan in 2013. Can this person take any legal step to us?? My dad was very simple and honest guy and we are running a reputed business ..
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1) claim of creditor is barred by limitation
2) suit for recovery has to be filed within period of 3 years from date of issue of cheque . if more than 3 years have passed claim is barred by limitation .
3) if he files any suit contest the proceedings . rely upon father bank statement that loan if any taken was duly repaid
Well, rest assured. It appears your father indeed took money from him but the same must an unsecured debt.
If that is so then the same ceases to exist with the death of your father.
Now he can not file any case against a dead person or against any of you.
i have just checked with my dads banker ie uco bank (cheque issued bank) and came to know that the savings account of that cheque book is inoperative or inactive /dormant since 2009 onwards...and the person was claiming he got the cheque on 2013 ...in fact he showed me the cheque of rs 1lac signed by my dad and date was not mentioned on the cheque ...what can be done??
1) in case any suit is filed against legal heirs of father contest the case on merits
2) dispute liability to make payment
3) burden of proof is upon plaintiff to prove that sum of Rs 1 lakh was payable by you r father
1. Unless the cheque was issued by your father in relation to the business which he ran and which has now been inherited by his heirs, you are not liable to pay off the debts.
2. If the date was not mentioned on the cheque then it is also possible that the cheque in question may have been stolen. Let him go to court where he will not have a joyride as he will have to prove that the cheque was issued for a legally dischargeable debt.
May i know the legal possibilities of that cheque? are we bound to pay the amount of cheque which was drwan in 2013. Can this person take any legal step to us??
As per law and RBI rules a cheque once issued is valid only for three months from the date of its issue.
If at all the cheque bore yor father's signture then also it is not valid beyond the date of his death for recovery of personal loan upon his death.
This person canot initiate action agaisnt a dead person hence ask him to proceed legally.
The cheque is not valid beyond three months, it is not valid after the death of the drawer of the cheque, the holder of the cheque cannot demand payment from the legal heirs of the deceased until the loan amount was for business requirements and the debtor left behind assets which has been shared by the legal heirs,
My dad was very simple and honest guy and we are running a reputed business ..
If this loan was taken three years back then it is barred by limitation.
i have just checked with my dads banker ie uco bank (cheque issued bank) and came to know that the savings account of that cheque book is inoperative or inactive /dormant since 2009 onwards...and the person was claiming he got the cheque on 2013 ...in fact he showed me the cheque of rs 1lac signed by my dad and date was not mentioned on the cheque ...what can be done??
The holder of the cheque cannot initiate action on the legal heirs on the basis of cheque for recovery and a cheque on the name of a dead person cannot be validated.
Let the so called lender approach court for necessary relief or remedy, he cannot do so because he knows that it cannot be enforced.