quesFalse case of cheque bounce file. How to save self as money returned?

Am I still liable to honor the cheque if I have paid the person the amount in cash? I had given a blank cheque in lieu of Rs.20,000 borrowed from a friend and returned the money in cash. However, my friend gave the cheque to someone who wrote in for Rs.80,000 and presented it, wherein it got bounced and a cheque bounce case was filed against me.


There is no written proof of the money I borrowed / returned and now my lawyer says I will lose the case and should go for out of court settlement by paying Rs. 1 lac.


What should I do now as I am feeling cheated and helpless?


  • ans 

    As per the Governing Law, the person who issues a cheque is liable under the Negotiable Instruments Act to the person to whom the cheque has been issued. So in case you have issued a cheque to another person, it will be considered that you owe the person the said amount, and the payment is being made to fulfil your obligation towards that amount due, unless you are able to prove otherwise.


    However, since there was no contract of Guarantee, you cannot be made liable to pay the amount.


    We advise that you must contest the case by bringing all the facts you narrated above. Once the above said facts will be brought on record, the burden to prove your liability against the complainant shifts to the complainant and he would fail to prove cogently how he came into possession of that particular cheque and in lieu of what service he provided to you he obtained the cheque. 


    So, take a shot and contest the case as anyways under the so said 'out of court' settlement you are being asked for an amount higher than the amount tendered (falsely written) on the cheque.


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