Hi,
Assume that there are 2 parties; the 1st party being A and the 2nd Party being B.
A promised B that he would get some amount as loan for B from a known source, which helps B to start his business. Thus, A acted as an Agent / Mediator for B. But without executing any Agreement / Promissory note, A asked the B to issue some BLANK cheques (ie.), without notifying the Date, Payee or Amount on the cheques but bearing only his signature. In the matter of trust, B issued 5 blank cheques by signing on it but without notifying anything like amount or date or payee name to A.
This was happened 2 years back but till now A didnt get any money for B to run his business. So, the frustrated B closed the Bank Account since he thought that why to maintain that account unnecessarily without doing any operation and handed over the whole cheque book (except that 5 cheques issued to A), pass book and all required documents to the Bank Manager. But the Bank Manager asked those 5 cheques as well. So, B asked A to give back all his cheques and said that he would have return all the cheques to the Bank as advised by the Manager.
But A is demanding a big amount from B to return the cheques, having said that A tried to get some money for B but he couldnt able to do it but he had spent a huge amount of money while he tried for that. The amount that he denoted is much high from the actual which is not even acceptable by anyone. Also now, A started blackmailing B that he will post the cheques for clearance if B is not agreed to give the demanded amount and file a case u/s 138, however, without giving any money for B. At this time, B is very much worried and understood that he got trapped, without any cause. Now, by this event, we might have predicted that A had breached the TRUST and do blackmail B for the sake of money.
Hence, please let us know shall B lodge a complaint against A to the local police station by explaining the above said circumstances? If so, on what grounds / sections that we can file this case? Else, it may be problem if the same may turn around to B as well?
'B' already had given instruction for 'Stop Payment', 18 MONTHS back. Further, 'B' given a detailed letter and mentioned that 'B' had misplaced / lost the blank cheques somewhere which was duly signed by him and where he couldn't able to find those cheques anywhere. Also, this has been accepted by the Bank Manager and agreed for stop payment of cheques, if anything entered for encashment.
But B never mentioned that he had given blank cheques to A because he thought that the Bank Manager wont accept his request for account closure if he tells about aforesaid facts. His intension is not to hide any aforesaid issues but wrongly thought that it may be problematic for himself and dont know how to deal with this matter because of some anxiety that A might file a lawsuit against him since A threatened B like that. So, naturally, he got frightened. However, B closed the account now and the 'Stop Payment' instruction has been accepted by Branch Manager. Additionally, the BM advised B to give a petition about the loss of blank cheques to the local police station.
As per BMs advice, B approached the local police station and given a petition that the blank cheques might be lost somewhere or stolen by someone. Also, B enclosed the letter about his intimation to Bank and which was accepted by BM too. But, the Police Inspector making delay to file this case without any specific reason and handling B in a doubtful manner. Now, B in a sticky situation that he couldnt able to reveal the incidents about what really happened to B because he is thinking that the problem might turn around to him if anyone knows about the cheque issuance to A. So, A takes this as an advantage to him and tries to defraud B.
Suppose, if A drops the cheques for encashment, what would be the reaction then? In this critical situation, what would be Bs next move?
The STOP PAYMENT of Cheques may NOT come u/s 138 Act. Isn't it..?!
Since the validity of a cheque is 6 MONTHS, how we can treat this blank cheques issued 2 years back and the same has been complained as it was lost by the drawer one & half years back? The drawee holding the blank cheque which was given 2 years back and NEVER dropped it for encashment until now. Also, the said account has been closed ONE MONTH back due to operational issues. However, the Stop Payment instruction (for the Blank Cheques bearing drawer's signature) had been given some 18 Months back. So, in this case, what is the validity of the cheque and how we can presume it? Whether it has any life now or expired by this time...? Pls clarify.
Anyways, kindly advise us how to handle this situation better and make ease the process to escape the innocent B from the culprit A. Hope you can drop a best feasible legal solution on this matter.
From India, Madras
Assume that there are 2 parties; the 1st party being A and the 2nd Party being B.
A promised B that he would get some amount as loan for B from a known source, which helps B to start his business. Thus, A acted as an Agent / Mediator for B. But without executing any Agreement / Promissory note, A asked the B to issue some BLANK cheques (ie.), without notifying the Date, Payee or Amount on the cheques but bearing only his signature. In the matter of trust, B issued 5 blank cheques by signing on it but without notifying anything like amount or date or payee name to A.
This was happened 2 years back but till now A didnt get any money for B to run his business. So, the frustrated B closed the Bank Account since he thought that why to maintain that account unnecessarily without doing any operation and handed over the whole cheque book (except that 5 cheques issued to A), pass book and all required documents to the Bank Manager. But the Bank Manager asked those 5 cheques as well. So, B asked A to give back all his cheques and said that he would have return all the cheques to the Bank as advised by the Manager.
But A is demanding a big amount from B to return the cheques, having said that A tried to get some money for B but he couldnt able to do it but he had spent a huge amount of money while he tried for that. The amount that he denoted is much high from the actual which is not even acceptable by anyone. Also now, A started blackmailing B that he will post the cheques for clearance if B is not agreed to give the demanded amount and file a case u/s 138, however, without giving any money for B. At this time, B is very much worried and understood that he got trapped, without any cause. Now, by this event, we might have predicted that A had breached the TRUST and do blackmail B for the sake of money.
Hence, please let us know shall B lodge a complaint against A to the local police station by explaining the above said circumstances? If so, on what grounds / sections that we can file this case? Else, it may be problem if the same may turn around to B as well?
'B' already had given instruction for 'Stop Payment', 18 MONTHS back. Further, 'B' given a detailed letter and mentioned that 'B' had misplaced / lost the blank cheques somewhere which was duly signed by him and where he couldn't able to find those cheques anywhere. Also, this has been accepted by the Bank Manager and agreed for stop payment of cheques, if anything entered for encashment.
But B never mentioned that he had given blank cheques to A because he thought that the Bank Manager wont accept his request for account closure if he tells about aforesaid facts. His intension is not to hide any aforesaid issues but wrongly thought that it may be problematic for himself and dont know how to deal with this matter because of some anxiety that A might file a lawsuit against him since A threatened B like that. So, naturally, he got frightened. However, B closed the account now and the 'Stop Payment' instruction has been accepted by Branch Manager. Additionally, the BM advised B to give a petition about the loss of blank cheques to the local police station.
As per BMs advice, B approached the local police station and given a petition that the blank cheques might be lost somewhere or stolen by someone. Also, B enclosed the letter about his intimation to Bank and which was accepted by BM too. But, the Police Inspector making delay to file this case without any specific reason and handling B in a doubtful manner. Now, B in a sticky situation that he couldnt able to reveal the incidents about what really happened to B because he is thinking that the problem might turn around to him if anyone knows about the cheque issuance to A. So, A takes this as an advantage to him and tries to defraud B.
Suppose, if A drops the cheques for encashment, what would be the reaction then? In this critical situation, what would be Bs next move?
The STOP PAYMENT of Cheques may NOT come u/s 138 Act. Isn't it..?!
Since the validity of a cheque is 6 MONTHS, how we can treat this blank cheques issued 2 years back and the same has been complained as it was lost by the drawer one & half years back? The drawee holding the blank cheque which was given 2 years back and NEVER dropped it for encashment until now. Also, the said account has been closed ONE MONTH back due to operational issues. However, the Stop Payment instruction (for the Blank Cheques bearing drawer's signature) had been given some 18 Months back. So, in this case, what is the validity of the cheque and how we can presume it? Whether it has any life now or expired by this time...? Pls clarify.
Anyways, kindly advise us how to handle this situation better and make ease the process to escape the innocent B from the culprit A. Hope you can drop a best feasible legal solution on this matter.
From India, Madras
Dear Sarva15,
You have done everything correctly, if the A presents cheque also he will be questioned, since you have filed a police complaint. Further, Issuing a cheque, there must be some cause, such as trade, money lending, loan etc. If A could prove that the Money was supposed to be paid to him, he must present the proof.
My point is that "b" is absolutely in safer side. No need to worry.
Regards,
SIDMAN05
From India, Madras
2You have done everything correctly, if the A presents cheque also he will be questioned, since you have filed a police complaint. Further, Issuing a cheque, there must be some cause, such as trade, money lending, loan etc. If A could prove that the Money was supposed to be paid to him, he must present the proof.
My point is that "b" is absolutely in safer side. No need to worry.
Regards,
SIDMAN05
From India, Madras
Had you not closed your account, you could have changed your signatures of your bank account. In this way any cheque deposited for encashment dated after the date of change in signatures could not have been legally honoured.
By the way, unless there is "debt or any other liablity" that B has towards A, B is not liable to A for the issue cheques. So B is protected.
If police has not given you an FIR, send a written complaint by registered post to Station Incharge with a copy to SP. They will give you a FIR no. then.
NOTE: This is neither a legal advice, nor the author intends it be a legal advice. Any action taken by anyione based on the above information shall be at their own risk.
From India, Delhi
By the way, unless there is "debt or any other liablity" that B has towards A, B is not liable to A for the issue cheques. So B is protected.
If police has not given you an FIR, send a written complaint by registered post to Station Incharge with a copy to SP. They will give you a FIR no. then.
NOTE: This is neither a legal advice, nor the author intends it be a legal advice. Any action taken by anyione based on the above information shall be at their own risk.
From India, Delhi
Dear Rajeev Mishra, At the outset, thanks a lot for your immd. respond and for your intellectual ideas. There is no doubt that you answer pours some light to this issue. Thank you, once again!
From India, Madras
From India, Madras
I accepted this friendly help of Rs.60,000/- from Mrs. X in the month of May 2010 which was indeed offered by her. For this no document was executed even after repeated requests by me. However she insisted that a cheque from my wifes account be given as surety for the amount to stand guarantee. For her peace of mind Cheque no. xxxxxx for Rs.60,000/- without putting any date, from my wifes IDBI Bank Savings account was handed over immediately.
At the time of repaying first installment in June she started asking for an interest @ 5% per month. As I had taken the money hence I felt blackmailed. I had no option other than to pay this interest demanded by her. I paid the first installment towards repayment of the above loan in the month of June. A cheque for Rs.18,000/- was given, which was later encashed by her major son Mr. YYYYYYYYYYY. Breakup of amount (Rs.15000/- towards Principal and Rs.3000/- towards interest @ 5% per month for one month)
In following month, i.e. July 2010 Mrs. xxxxxxxxxxxx had to go out for some marriage in her family. She asked to give the balance amount and the interest due on the pretext that she was suffering huge losses in her share trading account with India Infoline Limited, and required to deposit the cash in order to manage the losses.
I agreed to it and arranged cash for the repayment. She again sent her son Mr. YYYYYYYYYY to collect the balance cash on the 6th of July 2010. However she did not sent the original Cheque No.111111 given as security. I offered her major son Mr. Abhijeet Anand to take Rs.40,000/- in cash, (Video recording was made sensing their ill intention) bring back the security cheque and take the balance Rs.5,000/- and the interest accrued till that date, then and there on table. Mr. YYYYYYYY and her mother Mrs. XXXXXXX to it and Mrs. XXXXXXXX asked me to hand over the cash Rs.40,000/- to her son YYYYYYYYYYY on her behalf at the earliest, as time was running and they had to deposit cash in their bank account. I gave the cash Rs.40,000/- to Mr. YYYYYYYYYYY which he duly received.
On their coming back, I asked them several times to give the cheque back and take the balance principal amount i.e. Rs. 5000/- in cash and the interest, but now Mrs. Suman Chakraborty started asking for an interest @ 12% per month. I was unable to pay this hefty interest, however I was ready for the 5% per month.
Since then these mother and son duo started evading contact with me despite living in the same premises. I made more than 20 requests whenever I saw them. But the desired never happened.
At last, I sent four letters vide Registered post with acknowledgement of this intent in the month of November and December 2010, but no reply came. Later she and her son threatened me verbally at several occasions that if I do not pay them the interest at 12% per month they will get the cheque bounced and file case u/s 138 NI Act on my wife Smt. ZZZZZZZZZZZ and get her jailed. ( The advocate says I can not present the letters in court as I have stated about the interest being demanded, but Mrs XXXXXXX has not asked for the interest in her notice)
Today on this 29th day of December 2010, I came to know by this notice that indeed she has presented the cheque for clearing and has threatened my wife with proceedings u/s 138 NI Act.
From India, Ranchi
At the time of repaying first installment in June she started asking for an interest @ 5% per month. As I had taken the money hence I felt blackmailed. I had no option other than to pay this interest demanded by her. I paid the first installment towards repayment of the above loan in the month of June. A cheque for Rs.18,000/- was given, which was later encashed by her major son Mr. YYYYYYYYYYY. Breakup of amount (Rs.15000/- towards Principal and Rs.3000/- towards interest @ 5% per month for one month)
In following month, i.e. July 2010 Mrs. xxxxxxxxxxxx had to go out for some marriage in her family. She asked to give the balance amount and the interest due on the pretext that she was suffering huge losses in her share trading account with India Infoline Limited, and required to deposit the cash in order to manage the losses.
I agreed to it and arranged cash for the repayment. She again sent her son Mr. YYYYYYYYYY to collect the balance cash on the 6th of July 2010. However she did not sent the original Cheque No.111111 given as security. I offered her major son Mr. Abhijeet Anand to take Rs.40,000/- in cash, (Video recording was made sensing their ill intention) bring back the security cheque and take the balance Rs.5,000/- and the interest accrued till that date, then and there on table. Mr. YYYYYYYY and her mother Mrs. XXXXXXX to it and Mrs. XXXXXXXX asked me to hand over the cash Rs.40,000/- to her son YYYYYYYYYYY on her behalf at the earliest, as time was running and they had to deposit cash in their bank account. I gave the cash Rs.40,000/- to Mr. YYYYYYYYYYY which he duly received.
On their coming back, I asked them several times to give the cheque back and take the balance principal amount i.e. Rs. 5000/- in cash and the interest, but now Mrs. Suman Chakraborty started asking for an interest @ 12% per month. I was unable to pay this hefty interest, however I was ready for the 5% per month.
Since then these mother and son duo started evading contact with me despite living in the same premises. I made more than 20 requests whenever I saw them. But the desired never happened.
At last, I sent four letters vide Registered post with acknowledgement of this intent in the month of November and December 2010, but no reply came. Later she and her son threatened me verbally at several occasions that if I do not pay them the interest at 12% per month they will get the cheque bounced and file case u/s 138 NI Act on my wife Smt. ZZZZZZZZZZZ and get her jailed. ( The advocate says I can not present the letters in court as I have stated about the interest being demanded, but Mrs XXXXXXX has not asked for the interest in her notice)
Today on this 29th day of December 2010, I came to know by this notice that indeed she has presented the cheque for clearing and has threatened my wife with proceedings u/s 138 NI Act.
- The total amount that requires to be repaid back is Rs.5,000/- and the interest accrued till the 6th of July, 2010 which I am ready to pay any moment I am asked for.
- In no way it can be Rs.60,000/- as she has claimed by presenting this cheque. She never gave me any statement regarding this and presented the cheque for clearing even after repeated requests.
From India, Ranchi
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