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ss   02 March 2018

Property share money given through cheque

My father had taken a sum of xx lakhs as first installment from his blood brother towards the share sale of their father's property which wasnt done properly during their father's time itself (the father is no more).

Since this was the first installment my father trusting his brother took the entire money in cheque and deposited it (and he has shown this interest part in his IT return while his brother hasnt shown this as anything in his IT return).

When asked for the rest of the share, his brother refused to part with it saying that when the father died, he had advised him against giving him any money (though the xx lakhs was given on compassionate grounds according to his brother).

Now my father sensing that he may not get the share of the property, went ahead and seized the bank locker which was used by his father and him and then later where his brother also got added as a co-applicant for the locker (the locker was being used by my father's brother for keeping his valuables).

Because of this, my father's brother went to court and filed a suit that my father had taken a loan from him with no other prooff other than the cheque that was given (there is no proof for this except for the cheque that was given - no promisory note and no witnesses).

My question to the experts here is whether this money that was given as cheque can be considered a loan without any PN or witness? IF yes how? IF No please point me to the appropriate section and the law. and any previous judgements.

Thanks for your adivce.

 



Learning

 3 Replies

Siddharth Srivastava (Advocate)     02 March 2018

It all depends on circumstances. Consult a lawyer with details. Some preventive steps are required to be taken.

ss   03 March 2018

Yes..that is happening on the other side.I want to solicit your inputs as well..

Kishor Mehta (CEO)     03 March 2018

The law of Limitations will apply, if more than three years have elapsed since the realization of the cheque and if there is no subsequent written acceptance of debt.

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