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Friend failed to repay my money given cheque as proof what can i do


10-Jul-2023 (In Cheque Bounce Law)
I have lent INR 15 Lakhs to a friend of mine for investment purposes and he has provided me a signed cheque(not dated) as surety for future. He is now not able to return the money he owes me. What can I do with the cheque I have with me? I am afraid what will happen if he issues a stop payment on that cheque at his end.
Answers (5)

Answer #1
91 votes

If a friend fails to repay borrowed money despite giving you a cheque as proof, you have several legal remedies. You can start by sending a formal legal notice demanding repayment. If that doesn't work, you may file a civil suit for recovery of money. Further, if the cheque has bounced due to insufficient funds, you can also initiate criminal proceedings under Section 138 of the Negotiable Instruments Act, 1881.

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Advocate Chikirsha Mohanty

Adv. Chikirsha Mohanty

LawRatoDelhi | 200+ Answers
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Answer #2
634 votes
As per recent judgments of High court of AP,the person who has given the amount towards loan has to ;prove that he has the capacity to pay and that amount is legally enforceable debt.It means he has to prove that how he has acquired that money.It means he has to show in his income tax returns and pay the necessary tax.Otherwise the criminal case under section 138 NI act or civil suit for recovery of amount will not stand in the court of law.
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Advocate Ram Susarla

Adv. Ram Susarla

LawRato Hyderabad | 25+ Answers
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Answer #3
592 votes
Hello, Do you have any proof to say that your friend has issued the said cheque for discharge of his liability of paying you the borrowed amount? Have you both entered into any kind of agreement wherein he accepted to receive the amount from you for some purpose and that he will return back the same in certain period of time? What if he says and prove that he gave the cheque as mere surety purpose and not for discharge of his liability. The onus will on you to prove that he issued the cheque for discharging his debt. Please note that while no offence is made out if the cheque that is dishonored was given only as a security, the court shall presume that it was given for the discharge of any debt or other liability, and subsequently it will be for the accused to prove that the cheque was not given for the discharge of any debt or other liability but it was given only as a security. Once the accused is able to prove it, he shall be entitled to acquittal from the offence of dishonor of cheque. Deposit the cheque in the bank and after it bounces, issue a legal notice to him through a lawyer and demand the amount. If he doesn't pay, file cheque bounce case with help of a lawyer and proceed strongly.
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Advocate B. Srikiran

Adv. B. Srikiran

LawRatoHyderabad | 5+ Answers
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Answer #4
946 votes
Hi, You said that you gave money for investment purposes .you have not mentioned what were the conditions of payment given by you to your friend . What was the mode of payment done by you to your friend cash , online payment , through cheque .?? You can deposit the cheque and send him legal notice for payment of money but just cross check with the above details >Contact us through the website to assist you further.
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Advocate Mohammed Abdul Quadeer

Adv. Mohammed Abdul Quadeer

LawRatoHyderabad | 400+ Answers
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Answer #5
922 votes
Dear Client, Your friend cheated you. What is the written proof for your paying amount for investment purpose. You must obtain proper receipt for your payment. If there is no proof then your friend can say that you did not pay any amount to him. Even if you paid the said amount through cheque or bank transaction he can say that you owed amount to him and you repaid the said loan amount. If you present the said cheque and that cheque was bounced, then also he can say that you asked him to lend amount and he issued advance cheque and he failed arrange amount. So, you must obtain a proper receipt from him. If he did not issue any receipt, then present the said cheque by forestalling a case, that you paid the advance amount for investment purpose in the presence of two witnesses by citing the names of your friends who can come to court and support you and he issued the above said cheque for repayment of the above said advance investment amount in presence of another two witnesses who are also your friends who support you and that was dishonoured and you can file a cheating case also on same facts. Take expert legal advise by engaging an advocate for getting issued legal notices and for filing criminal cases against your friend.
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Advocate Sistla Rama Krishna

Adv. Sistla Rama Krishna

LawRatoVijayawada | 400+ Answers
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