Cheated on loan.

You have not clearly stated whether the rejection of loan by the company has been intimated to you in writing. Otherwise, how you came to know of it (i.e., through your personal visit or Loans Representative). You may send a legal notice to the company concerned seeking return of your cheques. If they don't despite your legal notice, you may immediately write a letter to the Bank giving "Stop Payment" of the cheques issued to the company citing the reason, which would save you from the wrath of s.138 of NI Act.

i have not received any letter confirming the rejection of loan.Only the executive intiimated that the loan has been rejected.

The querist states that his loan proposal to to the finance co. has been processed suo-motu in absence of a duly signed loan application and as a pre-condition to processing the above he has handed over  6 nos. of cheques( may be post dated ones) to the co.. In this case , has he checked of with the co. personally about the fate of his loan proposal or through a person who poses as a co. executive . Before proceeding for taking any legal action in the instant case for returning of the cheques consequent upon rejection of loan, one has to look for some kind of documentary evidence supporting the above facts otherwise this has to be treated as a simple case of cheating by the Executive concerned and proceed for suitable remedy. An experienced local lawyer may be consulted for necessary steps without loss of furthur time.

Never to sign these cheques by pen provided by company executive. In some cases with intention to cheat you they provide the loan applicant a special pen, after filling up details, they can remove the ink and fill it again as per their wish.