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cheque given as security of hand loan
16-Jun-2026 (In Cheque Bounce Law)
I have handed over signed cheques without dates to someone in year 2017-2018, as a security of hand loan, which I paid over a period of time,, due to some reasons I have not collected those cheques from him, what if he deposits the cheques today and withdraws money
If the signed cheque is still valid and gets presented, the bank may honor it if sufficient funds are available. However, since the cheque was given as security for a loan already repaid, you can challenge any misuse and take legal action for cheating, criminal breach of trust or wrongful recovery.
You should immediately send a written notice demanding return of the security cheques and keep proof of loan repayment as evidence.
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Adv. Riddhi Pratap Bothara
Pune | 5+ Answers
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If the cheques were issued only as security and the underlying loan/liability has already been fully repaid, the holder cannot legally recover money again by misusing those cheques. However, if he deposits the cheques and they are dishonoured, he may attempt proceedings under Section 138 of the Negotiable Instruments Act.
You should immediately preserve all evidence of repayment, including bank statements, transfer records, receipts, messages, emails, witnesses, or any acknowledgment showing that the loan was discharged. If possible, send a written notice demanding return of the security cheques and recording that the liability stands satisfied. In case the cheques are presented or any legal notice is received, reply promptly with proof of repayment and contest the claim. The outcome will depend on the documentary evidence available to establish that no legally enforceable debt existed on the date of presentation of the cheque.
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Adv. Sanket Ganpat Khamkar
Navi Mumbai | 5+ Answers
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If the cheque was issued only as security and the loan is already repaid, misuse can be legally challenged. Preserve proof of repayment and immediately send a legal notice seeking return of cheques to prevent wrongful presentation.
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Adv. Mrunmayi Kotawadekar
Mumbai | 100+ Answers
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He deposits the cheques, he may file a Sec 138 case. However, a debt from 2017 is time-barred and legally unenforceable. You should immediately send a legal notice demanding their return as per the concerned provisions of law.
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Adv. Pankaj Bajaj
Mumbai | 1000+ Answers
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Incident is very old... now cheque must be deposited within period of three months from date of issue, if date is mention...
If date is not mentioned than opposite can write date as par his convince... If you think opposite party can deposit the cheque than you can also write a letter to the bank as well as also iform to the police regarding misuse of cheque
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Adv. Rajesh Ramprasad Jaiswal
Buldhana | 5+ Answers
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