Dear Sir, I took 1 lac rupees from my friend to invest in shares and agreed to pay him 4% monthly for 6 months. For security, I gave him a cheque of Rs 1,24,000. The agreement is, I will pay him monthly 4% i.e. 4000 Rs for 6 months and then repay the 1 lac at the end of 6th month. And he will return the cheque to me. I gave him 4% for 3 months and due some issue in my job, I could not continue to do share trading so I returned the 1 lac to him via bank to bank to transfer after completing 3 months. And he was to suppose to return the cheque. But now he is not returning. And threating me that he will bounce the cheque Rs 1.24 lac if I don't pay him the remaining 12% interest. I returned the money in 3 months with 12% interest. If I had the money with me for 6 months and paid him only 12%, then what he is asking is fair. But I returned the money in 3 months with agreed 12%.
My question is, I have the bank statement as an evidence for returning the 1 lac amount to him. Can he still bounce the cheque and file a case against me? If I show the evidence for returning the principal amount, will the court dismiss his case?
Thank you for advising me.
