- This topic has 4 replies, 2 voices, and was last updated 1 year, 3 months ago by
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USo my father borrowed 32,000 from a person back in november 2024 with the promise of repayment in december, but couldn’t pay it back. Both parties came to an agreement that my dad would give him interest till february 2025 6,000 along with a cheque of the principal amount. The cheque was issued in my mom’s s name who is in no way involved in day to day finances apart from this.
Now my dad still needs some time to repay, so the lender accepted 5,000 as interest for the next 3 months along with a fresh cheque of the principal amount. But my dad forgot to collect the old cheque from him when he gave the new one.
Now we are getting to know that the lender deposited the old cheque 3 days back which bounced, and is now not ready to extend the date of payment inspite of having received interest for the same, and is threatening is with legal action. What to do now? Any valuable suggestions are welcome.
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HHas he officially sent you Legal Notice yet?
Let him take legal action if he wants and don’t return anything now (even principal amount). Cheque bounce spoils your credit score and he should not have deposited the cheque when your father was already making payments. Make sure to give your bank instructions to stop payment for the next cheque and don’t let it bounce for insufficient funds.
The case will take long time before the court. Also, since your mother did not borrow the amount, you will have good defence in the case. Also, taking legal action over Rs. 32,000/- is totally not worth it for the lender.
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UHe kinda seems like a nut case so he is probably going to go for legal action. So you’re saying that even though my mom’s signatures are on the cheques, we would have it as our defense??
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HThe final outcome of the case would depend on the evidence adduced by both sides, and I cannot give definitive advice on the same without actually seeing all paperwork involved.
However, as per the law, merely signing a cheque is not sufficient to establish liability under the Negotiable Instruments Act. The Complainant must also establish that a legally enforceable debt exists as against the signatory. Since your father is the one who took the loan, your mother can defend herself by denying liability and asserting that she is not responsible for repayment of the loan. Cheque bounce cases fall under criminal law, placing a higher degree burden of proof on the complainant for securing conviction.
That being said, if the matter goes to court, both parties will have to incur legal expenses. So pursuing litigation may not be financially viable for you either when the amount involved is very low. But, I recommend waiting until he actually files a case before offering any settlement, as there is a strong possibility he may refrain from legal action. The costs associated with sending a legal notice and filing a case could exceed the principal amount he seeks to recover, let alone contesting the case over years.
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