I am seeking advice regarding a financial dispute that has arisen in a poultry farming partnership. I partnered with another individual for this business in the month of June. I invested INR 5 lakhs, while the other person provided the poultry shed and other minor expenses. Before starting the business, he gave me 2 cheques worth INR 4 lakhs each as security with no written date. However, after the sale of chickens in the mid July, he received the entire payment from the purchaser and has since been avoiding my calls and not making any payments to me as agreed. It has now been 3 months since I have been requesting repayment, but he has not returned any amount. Unfortunately, I do not have any written proof of my investment as they all are made in cash. The only evidence I possess are call records where I repeatedly requested the repayment of my investment.I am planning to deposit these security cheques since he is no longer responding to my calls and whenever I visit his home, his family claims that he is out of town.However, I suspect that he might have given me these cheques with the intention of having them bounce to avoid repayment and possibly use this situation in a legal defense. Given these circumstances, should I proceed with encashing the cheques? If they bounce, what legal recourse would I have? Additionally, considering that my only proof is call records related to the repayment, what are my chances of winning this case? How long could it potentially take to resolve this dispute legally? Thank you for your guidance.
Dear Sir, The other side is also liable to pay the amount mentioned in the cheques but it is a long legal battle. It has to undergo three tire litigation that is magistrate Court, Sessions Court and then High Court. In the meanwhile it maybe ended in compromise. It is purely a criminal case as such warrants maybe issued if he did not appear.
Dear client, As per your query, you should proceed first by depositing the cheques issued to you and if they bounce, you can bring a legal case against them under Section 138 of the Negotiable Instruments Act, 1881, which attracts criminal as well as civil liability for cheque bouncing. You can issue a legal notice demanding payment within 15 days, and failing any response, you can lodge a complaint. Although you have no documentary evidence of your investment, cheques and call records discussing repayment talk strongly establish the case. Recovery can be sought through civil suit under Order XXXVII of the Code of Civil Procedure, 1908. Although months may pass, your case has cheques as evidence and supplementary supporting evidence. For a detailed discussion on the issue, feel free to book an appointment.
