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Cheque and stamp paper given as guarantee what action can lender take


13-Mar-2023 (In Cheque Bounce Law)

Hi,m a 28 yr old female.My brother borrowed 2.5L from his friend asking me to be the guarantor.I have given an a/c payee cheque in lender's name (signed but amount and date not written)and blank 100 Rs stamp paper(signed by me) as a security.But they both didnt confirmed me when the actual transaction happend.10 Days after i gave the documents,i got to know that my bro ran away sumwhere without informing.till date we cant locate him neither have any contact with him.His friend is now asking me to refund the amount on his behalf otherwise he will take legal action against me.Please help what to

Answers (3)

Answer #1
714 votes
Dear client if he file yr cheque and it will get bounced then he will surely prosecute u for cheque bounce case. whether he directly pay u amount to yr accourt or to yr brother. For proper discussion call me

Adv prasad patil

Pune

Answer #2
840 votes
You may face criminal prosecution under 138 of NI act. Write letter to drawer that chequer issued is only towards security and no prosecution lie on such cheque. Regarding guarantee let him file civil suit for recovery.
Answer #3
906 votes
dear client,even though you have given blank signed cheque and stamp paper as gurantee but lender can misuse it and can file complaint against you.He would certainly give you legal notice, you should have to give answer to that legal notice for your consistence defence.At the time of trial you should have to prove your defence.

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