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UMy father borrowed a sum of 2 lakh in 2009 and issued a cheque at that time. Cheque got bounced in 2010 as my father’s business got closed. The payee filed a case under NI act for cheque bounce.
There was no written agreement for the borrowed amount but the payee himself have written “the cheque was given as repayment of loan” with pen on the back of cheque
I was not aware about the case till Nov 2024 and case is still in pending condition from 2010 as the payee was not aware about my address and no adverse order has been passed.
My question is
1) Since there is no agreement will my father still need to pay even after so many years
2) If my father appear in court will he still need to pay 20% amount in starting just to appear in courtPlease note: We are still in bad economic condition and that person has charged so much interest in 2009 &2010 that he have already recovered 50% principal amount in interest
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RLawyer here.
A cheque case under Section 138 of the Negotiable Instruments Act, 1881 can only be filed with respect to a legally recoverable debt. That should explain the endorsement written on the back of the cheque. However, whether the cheque was given as a loan or not is the burden of the complainant to prove. The accused can appear before the Court and state that there was no debt. The findings will depend on the quality of evidence adduced before the Court by either party.
1. The fact that almost 15 years have passed does not absolve your father from any liability.
2. Nope.
If you have proof of the complainant recovering 50% of the principal amount in interest, produce the required records in Court and that amount will be adjusted in the claim.
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