Cheque dishonour cases
suresh phadkule
(Querist) 10 January 2012
This query is : Resolved
In Maharashtra, there is huge number of urban coop credit societies. Generally, while sanctioning loans, there is practice among many of these societies to take blank but signed cheques from the borrowers and when loan becomes NPA, these societies tend to use those cheques for recovery of entire loan along with interest by writing themselves total due amount on the cheque and present the same to tbe bank, get the cheque bounced(of which they are 100% sure)and then prosecute the borrower. In fact, they take other collateral security for loan. In this scenario, societies instead of initiating action under sec.101 of co.op. socy act,harass the borrower by way of prosecution under sec.138 of negotiable instrument act in the hope of early recovery as compared to recovery under 101. They think that borrower may pay due amount to avoid prosecution. This may be justified in exceptional cases of willful defaulters. But many a genuine borrowers are unduly harassed. Can such a cruel practice of such societies be contained? Can borrower take a stand that he has not written the cheque except signing it? Kindly advise.
V R SHROFF
(Expert) 10 January 2012
Even many Finance Co, take PDC, or Blank Cheques, and continue depositing very month.
To Harass, they deposit last chq at Kerala, Bhopal, Gurgaon, and compel Debtor to pay.
Wait for such Judgement for deserving cases.
ajay sethi
(Expert) 10 January 2012
borrower can place it on record that only blank cheque was given . but generally borrower signs agreement with them wherein he authorises them to fill in the details . if any such clause in your agreement beware
Nadeem Qureshi
(Expert) 10 January 2012
Dear Suresh
if the borrower want any relief the only relief is not take any loan, if the society or any other company take blank chequed signed by the borrower, it is the main objective of the society or company to recover their amount. there is no defence for borrower that he is not fill the amount in the cheque. we can not say that this is the cruel practice it is legal practice.
feel free to call
Raj Kumar Makkad
(Expert) 11 January 2012
Societies are within their rights to use those cheques meant for the use in the case the borrower fails to keep his words. These cheques can very well be used so that the borrower may keep on paying the debt in time.
DEFENSE ADVOCATE.-firmaction@g
(Expert) 11 January 2012
If your advocate can sustain to take the case to logical end , you can get relief.
Any case of cheque bounce (NI 138) can be won by the accused if diligently perused from initial stage. It is a myth that once a cheque is bounced conviction is imminent .
The complainant has to pass many many and many legal hurdles to achieve this.
1) Prove EXACT legal liability 2) Prove notice 3) frame proper pleadings in the complaint 4) produce all the evidence with the complaint 5) Prove cheque was actually given to the complainant BY accused 6) Prove its bounce against the complainant not against any body else. This is a big catch and ignored by many most of the time.
Accused suffer only due to guilt complex and initial lethargy .Power of defense is power of negative which is perpetual and immense.
ONE BORKAR FROM AHAMADNAGAR MAHARASHTRA DID IT AND HIS CASE AT AURANGABAD BENCH OF HC IS FAMOUS CASE LAW IN SUCH MATTERS.
prabhakar singh
(Expert) 11 January 2012
Mr. JSDN has given you sufficient clues to defend cruelty of the societies by invoking jurisdiction under section 138 N I Act.
vasant kulkarni
(Expert) 12 January 2012
whatever may be the legal consquences,it is the obligation of the borrower to pay the loan as per the loan agreement.it doesnot matter how the lender procceds.you must realise that the society is relying more on the cheques than the security given.there is no point in arguing that society is filing 138 case.
PL.CHECK WITH COOP DEPT, PUNE REGARDING A CIRCULAR THAT CAUTIONS SOCIETIES NOT TO TAKE BLANK PDCs FORM THE BORROWER.
Shonee Kapoor
(Expert) 13 January 2012
Agree with JSDN.
Regards,
Shonee Kapoor
harassed.by.498a@gmail.com
