loan and cheque bounce

Question

► Dear Sir/Madam, I borrowed ₹90,000 from a person who appears to be part of a private lending group. The amount was transferred to me by cheque. There was no formal written loan agreement, promissory note, or other paperwork at the time of the loan. I was paying ₹8,000 per month to the lender and made payments for approximately 13 months. All payments were made through GPay to the lender's number. So far, I have paid a total of about ₹1,04,000. I have been unemployed since November and, due to financial difficulties, I have not made any payments during the last two months. I am not denying my liability or refusing to pay. My inability to make recent payments is solely due to my unemployment and lack of funds. At the time of the loan, I gave the lender two signed SBI cheques as security. The cheques were signed by me, but I did not fill in the dates. The lender is now demanding either ₹8,000 every month or a lump sum of ₹1,00,000. He has also stated that he will deposit the cheques and send me a cheque bounce legal notice if the cheques are dishonoured. I believe I have already paid more than the original loan amount. Recently, the lender/recovery person has been using threatening and abusive language. I have records of the ₹90,000 loan transaction, GPay payment history, WhatsApp messages, and other communications. Based on these facts, I would like to know my legal position, the risks I may face regarding cheque bounce proceedings, and the options available to me.

Answer 1

give legal notice to lender

Answer 2

Dear Client, based on the facts stated, the lender may still attempt to present the security cheques and, if they are dishonoured, initiate cheque bounce proceedings. However, the fact that you borrowed ₹90,000 and have already paid approximately ₹1,04,000, along with the absence of a written loan agreement, may be relevant in determining the actual amount, if any, that remains due.

You should preserve all evidence, including the cheque transaction, GPay payment records, WhatsApp messages, bank statements, and any proof of payments made by you. If the lender or recovery agent is using threatening, abusive, or harassing tactics, you should keep records of those communications as well. Since the matter may involve questions regarding the outstanding liability and the nature of the payments already made, it would be advisable to consult a lawyer promptly and respond appropriately if any legal notice is received.

Hope this helps. Please feel free to reach out to us if you have any further queries or need assistance.

Answer 3

Dear Client,

Even though the facts stated above exist, the bank could still pursue their case against you based on dishonored cheques, considering that the signed cheques used as securities can also form the basis of a case against you based on cheque bounce. But the most significant matter to be considered is whether there was a legal liability for the money to be paid to the lender at the time of presentation of the cheque. The records that you have about receiving ₹90,000 from the bank, paying an estimated total of ₹1,04,000 through GPay, and the fact that there was no written document regarding the interest owed or dues payable can play a role in your defense if the claim of the bank seems unreasonable or exaggerated. In addition to this, the bank does not have the authority to abuse, threaten, or harass you during the process of debt collection. In case a legal notice has been received, it should never be ignored but must be responded to immediately through an advocate by providing the complete facts of the case, inclusive of the amounts that have been paid so far. The key issue in this respect will finally rest upon the amount, if at all, payable and its legality.

I hope this helps and if you have any further issues do not hesitate to contact us.

loan and cheque bounce

3 Answers