misuse of blank cheques 138

Querist : Anonymous (Querist) 27 September 2010 This query is : Resolved
I HAVE ISSUED BLANK SIGNED CHEQUES TO A PRIVATE FINANCER AND HAVE BORROWED RS 1.5 LAKHS. I HAVE ALSO EXECUTED BLANK PROMISSORY NOTES. AT THE TIME OF TAKING LOAN I HAD TAKEN XEROX OF MY SIGNED BLANK CHEQUES FOR MY REFERENCE. IN THE MEAN TIME I HAVE REPAYED 80,000 AND HAD DELAYED PAYING INTEREST. NOW THE FINANCER IS THREATNING TO PAY THE FULL 1.5 LAKHS AND 80,000 IS ADJUSTED TOWARDS INTEREST. I HAVE PAID ALL THE MONEY BY CASH. HE HAS NOW PRESENTED THE CHEQUES FOR RS 3 LAKHS AND IS HARRASSING ME WITH SEC138. IS IT NOT POSSIBLE TO PROVE THE MONEY I HAVE Actually borrowed. WILL THE BLANK XEROX COPIES WONT HELP ME AS EVIDENCE THAT I HAD GIVEN BLANK CHEAUES. THE HANDWRITING OF THE AMOUNT FILLED IS THAT OF THE FINANCIER.
PLEASE ADVICE

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s.subramanian (Expert) 27 September 2010
The presumption under Sec.20 of the Negotiable Instruments Act is against you. Try your luck.

adv. rajeev ( rajoo ) (Expert) 27 September 2010
whether had you replied to the notice issued by the complainant before filing the complaint? What documents you have to show the repayment.
There are some rulings that blank cheques cannot be used and some are blank cheques can be used.

Raj Kumar Makkad (Expert) 27 September 2010
Prima-facie, it is persumed that the cheque was issued against lawful debt but this presumption is rebuttable means you can raise a plea that the amount filled in the cheque was not a lawful debt towards you and financier is bound to produce its accounts how he arrived at such amount. The blanck cheque if bounced also attracts section 138 NI Act but defence has already been told by me so follow it.

Daksh (Expert) 28 September 2010
Dear Anonymous,
The first mistake was not executing a proper loan document and second blunder was not taking reciept of the paid money.
Last but not least in reply to the Notice u/s 138 N I Act you could have stated the material truth so as to fight your case in the court of law.
Best Regards

Daksh

G. ARAVINTHAN (Expert) 28 September 2010
you had issued a cheque to the financier, hence you need to face consequences

Devajyoti Barman (Expert) 28 September 2010
Yes it is a strict liability case.

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