cheques issued

atul mehta (Querist) 27 February 2011 This query is : Resolved
I have borrowed about rs. 25 lac from financier on interest rate of 5% monthly and have already paid interest of more the rs.25 lacs to him, now due to some circumstances Iam not in a position to pay the interest and also the capital to him, I have issued cheques in small amounts of 30-50 thousand rupees each amounting to rs.25 lacs which are in current dates as always the financier changed the old cheques with new cheques every 2 months. the money which he paid me was in cash.now he is threatening me. Please advice what legal precautions I can take to protect me from the financier even he can try illegal methods of recovery.
your urgent sugessions requested.there is no contract or any other documents signed or executed.
with warm regards

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n.k.sarin (Expert) 27 February 2011
you did not disclose in your querry that there is anything in witten or not.

mahendrakumar (Expert) 28 February 2011
apart from the cheques,do you have any other written contracts with the financier?

if there is only cheque,there is scope.

DEFENSE ADVOCATE.-firmaction@g (Expert) 28 February 2011
All told if the matter goes to court you have valid defense.

For harasment you can move criminal justice.

Ajay Bansal (Expert) 28 February 2011
Agreed with Shashi Kumar in this query.

atul mehta (Querist) 28 February 2011
Dear sir,
There is no agreement executed or any other documents signed apart from the cheques that are issued.
regards

atul mehta (Querist) 28 February 2011
Dear sir,
What is the defence I can take in court and how, where and when to file criminal complaint. please advice.
with warmest regards

sreenivasa Rao.P (Expert) 28 February 2011
Dear Atul Mehta
Confirm whether your lender is a licensed money lender.If he is not a licensed money lender you can better try to find out the names of the persons to whom he had lent money.If he is not a licenced money lender refer to money lenders act.U have a good defence.You can as well take the plea of mis placed cheques and if you can take that plea first you have to lodge a complaint with the concerned police about the missing cheques and also give intimation to your banker. You can also lodg complaint with the police about the harrasment and about the business he is running.The exorbitant intrest which is charged by him amounts to extortion.he cannot do money lending business with out a valid licence.As there are no other documents to establish that you had borrowed Rs.25 lakhs you need not worry.If he tries to collect the money through some other way,your only remedy is to approch the police and lodge a complaint.In this case your lender has to move the civil court for recovery.Further if your totally bankrupt file a papuer petition in the concerned court and seek the relief of being declared insolvent.

atul mehta (Querist) 28 February 2011
Thank you mr.sreenisa rao,
I think he has got a licence as he lends in crores of rupees. About charging 5@ rate of interest there is documentry proof. About declaring insolvecy i cannot do that as i have running bussiness, as only source of my bread and butter.
regards

atul mehta (Querist) 28 February 2011
sorry i meant there is no documentry proof

atul mehta (Querist) 01 March 2011
Dear mr. srinivas rao,
I feel he has a licence, there is no evidence for rate of interest paid also there is no written agreement.

request you reply with suggestions.
thanks and regards

mahendrakumar (Expert) 03 March 2011
eventhough legally you may fight the case,it is very difficult to get from the clutches of such people.

atul mehta (Querist) 03 March 2011
dear mr. mahendra kumar,
There must be some legal points and means to fight?

cheques issued

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