Cheques kept as security, presented in bank by company
Hi, I started my business in 2011. I signed a dealership with a company who took 3 cheques from me as security. Everything was going good until once that the company sent me extra materials than what I had ordered. I asked the company to take back the extra material and settle the account. However, they chose not to pay heed my situation. This material went down as a waste for me. I suffered losses due to the same. I am now deciding to close down the company and to do a job.
During this time, the company presented the cheques that I gave them as a security amount to the bank. The cheques bounced due to insufficient funds. The company now says that they will file a case against me, that to in another city. Is there any way I can defend myself on court?
Issuing a security cheque by filling up the amount and name of drawee is an express authority to the drawee to present the cheque to bank for encashment. If the cheque has bounced then a legal notice will be issued to you by the drawee for payment.
You are not required to present yourself in the court at every hearing. You can engage a lawyer in that city. The presence of your lawyer will suffice.
In the meanwhile, we would need some clarity about your query. Have you already received a legal notice from the company? What is the amount payable by you and how much they are claiming through the cheque? Do you have any record to show that you have given the said cheque as security for the future liability and who written the amount on the cheque?
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