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  • Category: Indian Law

    Cheque given but terminated from paying the amount by drawer by claiming not to pay for the payee


    Have a query about cheque payment? Wondering what to do if the payee does not honour the cheque? Check out this page for advice from experts for all your queries.

    My Father gave money to his friend for some interest and as a security took cheques from him. Now he is not paying the principle and interest and so my dad surrendered the given cheques in the bank. But the person filed that the amount shouldn't be paid on the concerned cheques(When we asked bank Manager about this) he said the person has
    directed the bank to not pay the amount on those particular cheques .
    What can my father do to get back the amount?
  • #147627
    Accepting post-dated cheques as a form of security against money loaned is a traditional but not a foolproof system. The agreement between your father and his friend would be a verbal one based on word of honor or trust. Unfortunately, some people misuse it.

    Any legal account holder is perfectly valid in asking the bank to 'Stop' payment of a particular cheque and the Bank authorities have to honor it. So, you cannot blame the bank or force them to change their stance.

    Things to consider is, the size of the amount loaned by your father, is it accounted money or white source that has been drawn on a particular time frame related to the loan issued. If it is an accounted source, then you can think and explore legal options. if it is unaccounted money, then filing a legal case or complaint could backfire. Loaning money and recovering the dues needs patience and planning.

    First, see if there are other common friends or family friends known to both, who can mediate an understanding and collect the dues in a phased manner.

    It's similar to a game of who blinks first, you and your father need to be persistent in approaching this person. You can politely but firmly demand the dues in parts at a regular interval, visit their homes, their workplace, their social gatherings etc. Make sure that you do not interfere with women folk that can be used against you.

    Many areas or localities have senior citizens or people with power and influence who often settle disputes in the neighborhood as part of social service or for a commission.

    Some local grassroot officials like the corporator, tahsildar etc can help you out as then speak with an authority that you or your father cannot exercise.

    If the amount is traceable to one of your bank accounts and you have no issues with IT, then you can file a case of fraud in the local police station. If non-legal measures fail, many send a letter via a lawyer and file a court case.

  • #147628
    Cheque dishonour case under section 138 of NI act can be filed. But there are certain basic conditions to be met before that.
    1. You have to present the cheque (through your bank) to the bank of the drawer. Ensure that the cheque has sufficient validity time from the date written on the cheque.
    2. Get and preserve the Cheque return memo.
    3.Within 30 days of receiving intimation of cheque return( better precaution is before 30 days from the date of return itself) you have to send a notice to the drawer demanding payment within 15 days. This is very important with regard to filing case.
    4. If he fails to pay the amount even after demand notice you can file a case under NI act, within 30 days of expiry of the notice given 15 days.

    Get the service of an experienced and sincere lawyer in this regard. If the amount is big lawyers mostly take a certain percentage as their service charges also. If the amount is small, it may no be worth a litigation . An experienced lawyer in this regard can give you the needed advice.

  • #147639
    Is there a document regarding the transaction that has taken place between your father and his friend. If there is any proof that he has taken money from your father you can just get into a case against him. You can contact a good lawyer, show him the document and the returned cheque from the bank so that he can file a case against him. The cheque owner is having a right to advise stop payment for certain cheques he has issued. The bank officials can't deny his request. So you have to fight with the person who has taken a loan but not with the bank. Even if there is no proof of transactions, the rejection of cheque given by him can be a document as proof for the loan you can try in the court with a good lawyer who can get the facts from the borrower and submit them in the court. You try that option only. Better to do it as early as possible as already cheques are sent back bt the bank.
    drrao
    always confident

  • #147643
    You have to find out whether your father has given the money to his friend by cheque or cash. If it is a cheque then it becomes easier to start a proceeding otherwise you have to simply mention that the money was withdrawn from the bank and given to the friend.

    Anyway, you have to lodge a case against the friend for not returning the loan amount. The rejected cheques by the bank will be of immense value as you can mention that the cheques were post dated and issued by the friend to return the money in future but now he is defaulting and it amounts to cheating and as per law he should be punished.

    It will require the help of a lawyer to send a notice to the friend and if he does not comply lodge a court case against him. Many times to avoid the hassles of the court case and social defamation people immediately comply.

    Knowledge is power.


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