I have given Rs 10 lakh by cheque to one person for starting a business in partnership. He has made a Promissory Note of the same which has been signed by both of us . He has mentioned the period for returning the money as March 2022. There is no mention of any business partnership in the Promissory Note. The note was made in March 2017. When I understood that I have been cheated I also found out that he doesnt even own a house . We were to run Country Liquor Bar in partnership .The license is in his mother's name.
First answer received in 30 minutes.
Lawyers are available now to answer your questions.
Hi,
Till now there is no violation of the conditions of the promissory note although you have got the information that he is not holding any property and as there is no mention of any partnership.
You have not taken due care while signing the promissory note.
Please see the exit clause if it exist and if not the please file a case of cheating and recovery of money.
Immediately file a suit fir recovery of money alleging fraud and misrepresentation
He has only given me xerox copy of the Country Liquor License which is on his mother's name . He also gave me 2 cheques of 5 Lakh each on lot of coaxing in September2017 . He has written " Security Cheque .Not to put in date and present without written consent of the drawer " on the cheques. I had lodged a police complaint for cheating but was turned down saying it to be civil case . He gave a statement that He has taken friendly loan and will return when funds are available. I have recorded his phone calls in mobile. There is no written evidence of partnership . How long will it take (approx) for the outcome of the court case ? What kind of case will have to be filed ? Will I get my money back ? Can I ask for interest ? how can I prove it to be a cheating and misrepresentation case ?
Started business in partnership deed but there is no partnership deed? Promissory note is till March, 2022 showing loan. The partner does not have even own house. Do you have any ID, Adhar Card, etc. Now, tell the cheque is given in mother's name or in the name of partner. Go to your bank and check in which bank and account number, the cheque for Rs.10.00 lakh is credited by him and what is the status of his account. It must have been closed. Whether he sits in the bar whose license in the name of her mother. Also let me know in detail how he has cheated you.
1) There are two scenarios in your case study.
a) file suit for recovery after 2022, if he doesn't pay you amount.
b) you can take it by mutual consent talk as you were in partnership business of country liquor. Try to run business currently in full fledge and recover your money by 50,000 to 1 lacs per month with 12 to 28 months you will recover money.
It would be a civil case. You can obviously claim interest.
If police turn down the request of FIR then the other way is to file a criminal complaint in the office of magistrate under CrPC 156(3) for the cheating and misappropriation under section 420 & 506.
After taking the cognizence the magistrate may order the police to investigate the matter or may order the summing of the accused.
Please be aware that the promissory note and security cheque s were given to you to just keep your eyes shut.
Hello sir , if the police is not registering FIR you can file a complaint case under section 200 Crpc directly in court for cheating ...secondly he has a intention of cheating from the very begging therefore he mentioned "security" word on the cheque so that it cannot be covered under criminal complaint of 138 NI act .. It is advisable to file a recovery suit against the person and a criminal compaint of cheating directly in court
Dear Sir,
You should have taken legal advise before taking complicated documents. Any way you may file private complaint before Magistrate for cheating you. Secondly you may also file cheque bounce case against him after issuing notice to him to give consent present the cheque then issue another notice to him on its bounce. I can say my opinion on the the promissory note only on seeing it. Please send WattsApp copy to me. For more advise contact me on phone.
rs 10 lakhs is due and payable only in 2022
2) although he had given security chewier it is clearly mentombed that you need his consent to present the cheque
3) you can file summary suit to recover your dues
4) if is able to make out a case for defence suit would take years to be disposed of
Amicable settlement is best option
2) litigation is long drawn and expensive proposition
3) loan is repayable only in 2022
Case would be of recovery of money.
Would take almost one year if he denies otherwise 6 months.
No interest can be asked on the basis of loan kind of thing, but yes 18 % pa would be applicable on it as per law till the closure of the case from the period of money was taken.
You can file civil suit for recovery against him in the court of law with the help of any local good advocate. Yes definitely you will get your money back alongwith the reasonable interest rate. It will take around 2-3 years to dispose of the matter completely.
1. If there is no mention of the partnership business in the promissory note then how would you prove that the cheque was given to commence a business in partnership.
2. The amount is to be returned in March 2022 according to the promissory note. Unless the date of return is breached you have no cause of action to sue this person for recovery of money.
Respected advocates ..1. As far as I understand i cant file a cheating case against him cause I don't have any written evidence except the xerox copy of Country Liquor License ( why would I have copy of someone's License).Can I file a cheating case ? If yes please specify how ? and on what basis ? 2. Please explain how summary suit for recovery is filed and how long does it take for the outcome. 3. The Promissory note is NOT registered .Its only notarized on Rs.500/- stamp paper . Does the court accept notarized document for Rs 10Lakh case .Is notarized document valid in the court of law ? 4. He doesn't have the original promissory note . He only has colour xerox copy . Is colour xerox copy acceptable in the Police Station ? Will it be acceptable in Magistrate's office ? OR do they all REQUIRE the original document ?. If xerox copy is not acceptable then I can simply file CHEATING CASE under section420 by denying any knowledge of the promissory note. 5.If I file summary suit for recovery will he have to deposit 50% (RS 5 lakh ) in the court before starting the defence ? How much money will I have to deposit in the court ? Can he prolong the case by citing various reasons like health problems , out of station etc. Do I have to attend the court on all hearings ? 6.If he accepts that he has taken money and is willing to return the money when he he has provision then what happens ? Does the court give him time ? Can he say that he can give Rs 1000/- per month ? Will the court accept such a compromise ? Will it be binding on me to accept ? 7. Can I ask court to take action against his country liquor license ? License is in his mother's name but I have given cheque in his name and not his mother's name. 8. If the decision is in my favour and he shows nil bank balance then will he get imprisonment . What happens to my money ? 9. There is no mention of the cheques anywhere in writing that he has given me . Can I deny any knowledge of the cheques ? And if I accept it , then can I deposit them in the bank ? When the cheques bounce citing reason as " Drawer has not given written permission " Will these bouncing of cheques amount to case u/s 138NI ? Or for 138NI the reason for bouncing of cheques has to be " insufficient balance ".
1) no case of cheating is made out . As money was returnable only in 2022
2) summary suit can be filed for dishonoured cheque
3) if your partner contests the suit proceedings it would take years to be disposed of
4) original documents have to be produced during trial .of original is lost or misplaced secondary evidence is permissible
5) conditional leave to defend can be given on depositing 50 per ce t of amount due in court
6) no need to attend court on all dates
7) you are not bound to accept defendant offer of settlement
8) no action can be taken on mother country liquor licence
9) if you decree in your favour you can execute decree by attachment of his property or bank accounts
10) if cheque is dishonoured for any reason complaint would be maintainable under section 138 NI
The promissory note is an evidence for having borrowed loan.
Since he has not made you a partner in the business, you may send him a legal notice to him demanding the return of loan amount though he has mentioned that he will will return it in the yer 2022.
A loan repayment cannot be claimed beyond three years.
It will be barred by limitation until there is a renewal or an endorsement in the loan papers by the borrower acknowledging his liability.
The cheating and misrepresentation allegations cannot be proved if they were orally made.
You may have to file a money recovery suit to recover the loan amount with interest on the basis of the promissory note.
You can even get the cheque bounced and file a cheque bounce case under section 138 NI act even though he has made an endorsement tht this is a security cheque.
The purpose of issuing a security cheque is to compensate or utilise the cheque amount in the event of default of loan repayment.
1. Cheating case is not maintainable.
2. Summary suit for money recovery to be filed through an advocate becasue the procedures for filing cannot be explained since it varies from one place to another including the court fee for the purpose.
Generally it takes at least two years for disposal of summary recovery suit.
3. The notarised loan agreement document is very much valid in court of law for the purpose of money recovery suit.
.4. You can state that the original promissory note is held in his possession.
The 420 case may not be maintainable if you have loan agreement papers duly notarised.
5. H need not deposit the 50% amount in the summary suit for recovery of loan amount.
This rule is applicable only to the cheque bounce cases, this is a recent amendment in the cheque bounce rules
6. If he states that he will pay 1000 every month you dont accept, let him under go imprisonment.
7. No action can be taken against his licenced liquor shop.
8. He can imprisoned in civil jail till he pays the amount.
9. You can initiate cheque bounce case for the same reason since the cheque is given for security for non payment of loan amount.
you can file suit for recovery of money please call for further discussion on
You can file a summary suit for recovery of monies. If you have his cheque you can also file cheque bouncing case under section 138 of Negotiable Instruments Act
