My son has given blank under signed cheque leaves to a few from whom he got the loan.Now he lost his business and lost lot of money.Now all the prople who has the cheques are filing a case in court against him with double or triple the amount than what he actually borrowed.( if he has got Rs.25,000, they are depositing cheque with 50,000 and once it is dis-honoured then they file the case).I do not know how to tackle this situation legally?? pls HELP
2006-11-28 23:01:57 · 7 answers · asked by Anonymous in Politics & Government ➔ Law & Ethics
Take a lawyer.
What do you mean by "under signed cheque leaves"?.
Do you mean Unsigned or without signature?. If so counter sue for copying the signature without permission or authorisation.
If the cheque is in his name(a Personal or his solely owned business), you are not involved, if he is not a minor(below certain age)help him at arms lenght only, this will protect you legally you should have nothing to do with it.
He must go to court with his "lawyer only" and a "Hand writing expert".
I am hoping that there is an honest person with correct amount, and tell his story that agrees with your son's story.
Lawyer should combine all cases, combine in one trial with individual verdicts so he can build the case that all hand writings are different.
Since you already said he gave the cheque it is a fact and do not let, lawyer make him lie, this is on Internet now. Only thing in question is amount of loan.
If it was a limited company properly registered, then lawyer will explain what his total liability is. He is not personally liable.
A good lawyer will try and settle out of court for the amount + interest only + penalty if any by agreement. The fact is he did take loan, you said "what he actually borrowed".
2006-11-29 00:04:18 · answer #1 · answered by minootoo 7 · 0⤊ 0⤋
I am not a lawyer but the way I understand matters regarding dishonouring of cheques and thus coming under the "Negotiable Instruments Act":
1. In the present case, the cheques cannot be deposited for ridicolous amounts,and then be dishonoured thus leading to criminal cases.The amount cannot be more than the principle and interest payable.That is unless you have signed any paper that says you will pay a very high rate of interest.Even then, you can plead for time to repay.
However
2.The cheques must have been issued against some specific legally documented consideration. Otherwise they cannot take your son to court on criminal charges under the Negotiable Instruments Act. It can only be a civil case.
At the pace things are moving in civil courts, I dont think you have to worry much as both you and your son and his children would be long gone from this world before anything came up for serious hearing.
But check up with any lawyer if there have been any amendments to the Negotiable Instruments Act, which could make your son liable.Because that is one Act which can give you a lot of trouble in case it applies in the present situation.
2006-11-29 00:09:39 · answer #2 · answered by joe m 2 · 0⤊ 0⤋
In South Africa you could report such a case to the MICRO LENDING FINANCE COUNCIL and they would deal with the matter accordingly because each high scale lender needs to be part of this council.If the lenders do not make borrowing money a job then your son will have to file for bankruptcy and provide documentation to show the sum that each creditor owes so that they do not take more than they are owed.Once he files for it an executioner of the estate will be appointed to make sure this happens.
Is there such a process in your country?
2006-11-28 23:19:17 · answer #3 · answered by marielou 2 · 0⤊ 0⤋
In America if you give out a blank check you do it at your own risk, which means you would not be able to get out of being responsible for reimbursement. He could however file bankruptcy here and put it into a chapter 13 and reorganize his debts.
2006-11-28 23:05:01 · answer #4 · answered by cereal_killer034 5 · 0⤊ 0⤋
Well, the additional amount, as you say, will be interest & penalty. It is not contestable. It is better to ask for time from the suit filers and settle it in any way possible. Otherwise, there is no way-out, from this mess. He has to face the consequences. Better to go for settlement, out of court, possibly, for monthly re-payment, EMIs , which they may agree.
2006-11-28 23:24:53 · answer #5 · answered by Anonymous · 0⤊ 0⤋
YOUR son had it. He should file BANKRUPTCY and be prepared serve jail term. Has any way of proving the amount he got as cash loan. He can force the claimants to prove their source of the money they loaned to him. If they ca not then they would be in trouble themselves. GOOD LUCK
2006-11-28 23:27:33 · answer #6 · answered by Anonymous · 0⤊ 0⤋
For that amount you can have him arrested. The funds will miraculously appear then. The check and email will all be useful. No need to notarize the emails. The date and time stamp will be sufficient.
2016-03-29 15:35:43 · answer #7 · answered by Anonymous · 0⤊ 0⤋
by verification of handwriting you can argue that they have misused your guaranty for money back , if the hand writing are match with your son , then ?
2006-11-28 23:55:38 · answer #8 · answered by prithvi 3 · 0⤊ 0⤋