Sir Jopat ji, you are proprietor and law abiding person like us, so in our country law abiding citizen have to bear a lot of things, one of them, you as well as I am facing. There are a number of court citations in which it is written that 18% p.a. interest on the face value of cheque being mandatory in section 80 NI Act to be given to complainant, but it is rarely implemented by our judicial system, in addition to this, there are another citations which tells that per hearing cost should be given to victim, but that is also rarely used. In cases u/s 138 in case of conviction, sentence is not being provided by the judiciary as per law in the name of discretionary power why best know to judiciary, as one year sentence being proved inadequate, it was enhanced to two years, but in rare cases even today one year imprisonment sentences is provided. Everybody relating to law will tell, justice should be done at once, but in practice in most of the cases every effort was made by the accused side, to delay the matter, and there is no one to help in checking delay time. Offence u/s 138 being bailable, accused used to get his security forfeited again and again, and our judiciary system used to give him bail as routine indirectly helping accused in dragging proceedings, while in bailable cases, only one time bail is accused’s right, and if he did not turn up then before giving him second time bail, al least face value of cheque should be deposited in the court to grant him bail again, but it is also hardly implemented. So in our country's judicial system in spite of many provision in law to check the delay, they are rarely implemented why best known to judiciary system. In our country if the bank like ICICI takes help of musclemen in getting his dues recovered, it is called wrong, yes it is wrong also. But what is happening the person like you and us, who are taking shelter in our judiciary system. We are not being provided "complete justice" and being harassed to a great extent and forced to take the money whatever accused wants to give and in result  to think that  even if we do not close our business, but at least reduce it.  Even though let us hope, one day will come in our judicial system, the "fear psyche" will be in the mind of accused in stead of victim lest the matter should go to court and if the accused is convicted he will have to not only pay the full compensation according to law, but he will be punished with imprisonment not less than one year.

There is misuse of this clause by money lenders

Cheque is purtly money lenders business at high interest. All assistance should be given to accused to come out of it.

Respected Shashikumar ji,

Let me know according to you what is the definition of high interest. At the same time, let me know at what rate of interest, an institution should get  the money and how much margin.an institution should add to meet its expenses and salaries of employees etc. and what rate of interest should be charged according to you, that will be appropriate rate of interest, so that in our country, a person requires money does not go to unorganised sector to meet his requirements and at the same time defaulters should not be flourished at the cost of honest payers.

with regards,

If you want to charge interest take legal permissions. Cheques are pure extortion of a person trapped in need.

These money lenders are charging 50-120% PA interest, if it is legal why don't they give receipt of interest charged? Unlike erstwhile Jamidar money lenders, these sharks are sqeezing blood of needy

Respected Shashikumar ji and others,

yes, legal permission should be taken, everything should be in fair manner, through banking channel giving loan via a/c payee cheques and getting money back through a/c payee cheques and if someone wants to deposit money in cash duly receipt should be provided. Now let me know the answers, about rate of interest according to the persons who thought that the right thing should prevail in country i.e. so that needy is not exorted and the persons even having money and does not pay, suitebly punished, if not possiblet  in terms of   both compensation to payee and imprisonment but al least in terms of compensation, and compensation for every penny spent by payee to get recovered money lent. so that the cost of defaulers is not shifted to honest and needy borrowers.

with regards,

Dear All,

If person fails to borrow money from banks and finecial institutes because his credit limit is nil and he is on death bed, who is going to help him other than money lenders, will you give your money ?

Have you helped anybody till now without charging any iterest ?

I think its entirly wrong to blame money lenders, they charge interst accordinging to credit rating and repayment capablities of the person.

I get loan from money lenders at the rate of only 15% P/A whereas banks lend me at the rate of 18% P/A and its easiest thing to do, just by calling them at any time.

Sorry I don't want hurt anybody but isn't it that person who borrow money should always check, what he is doing ?

Dear All, thanks a lot for your  valuable comments but I think that the main issue is left aside.The main problem in the 138   cases is that the trial takes a very long time as in the normal civil cases and therefore the lengthy proceedings results in delayed justice.Further it is not always  the interest or moneylender's case but mostly the cases comes out of dishonesy or intentional fraud by the drawer of the cheque.However it is desired to discuss the short route to arrive at the conclusion so that the dishonest drawers are dealt with properly and early to meet the ends of justice

Mostly people are talking of fate of money lenders, who just take sinatures on blank  cheques and stamp papers. Who are dishonest? Money lenders Or drawers?, if u ask for three four times money paid, from where person will pay?, who goeis to money lenders? Rich?, certainly not, person who is in trouble and no means falls into clutches of these blood suckers, so in case of money lenders, if court takes 10 years,  it is less

Satish Kapoor ji,

What about money given by friends on interest to needy friend and needy friend doesn't want to pay even after giving Pronote and signed and filled cheques, this should also take same long time ?

Respected all,

please give answers of my question dated 02.03.2011, because malpractices at any level should be stopped whether it is level of lender or borrower.

If you charge interest it will be treated money lending.

Regarding Mr Mittals querry , since you are aware that it takes time in courts why you have taken the risk of your money against a piece of paper the cheque.

If u help a friend and charge nominal (Bank rate interest) and friend does not pay back ( if he is in position to payback), it is really  bad, if u have charged interest like money lender i.e. 3-10% per month, then if he does pays, I will nor call him bad boy. In case his finacial position is not in state that he can pay back loan, instead of getting cheque bounced and file case under section 138 NI, u should negotiate for fresh cheque so that when his financial position improves, he can pay you back.