You contact a local advocate experienced in cheque bounce cases,  discuss at length on all the probabilities based on the documentary evidences in your possession. 

You may proceed by first issuing a reply notice denying the allegations leveled in the legal demand notice. 

After that you can challenge the cheque bounce case in the trial court accordingly. 

You may not be allowed time by the complainant in this regard. 

By allowing you time,  the complainant would be losing his opportunity to file the cheque bounce case because it may be barred by limitation. 

However you can talk to him and work out an arrangement,  provided he agrees to your proposal to the terms of settlement offered by you. 

It's a mutual agreement for which you cannot find a legal provision in law. 

As per law without the license of money lending the entire transaction would be illegal and unethical. The lender deserves to be prosecuted. 

As per the facts of yhe case, your freind doesn't have money lending license therefore charging interest on money lending business without license is illegal. 

Please reply his legal notice claiming that you had borrowed friendly loan from him without any interest as per mutual consent. 

The blank sighed cheque was given as collateral security against Principal Amount.

Please challenge the notice and deny the interest claim of your freind. 

Whatever amount have been paid by you must be claimed by you as part payment of principal amount.

After deducting part payment, agree to pay rest the amount within 15 days from the date of receipt of legal notice. 

Reply to legal notice deny that amount of Rs 9 lakhs is payable by you 

that amount of Rs 6.50 lakhs has been filled by drawee 

That only blank cheque was issued . You have not authorised then to fill in details 

You have 15 days time to make payment 

Hello,

1. You have to reply to the legal notice immediately denying that you owe Rs.650000/- and stating the correct figures. State details of the interest already charged.
2. The relative, having no money lending licence could not have lent money on interest. You can deny the contents of the promissory note when produced in court.
3. If they file a case in the court, which they are bound to do within 30 days of issuing the notice to you, you have a lot of time to settle the payment if a compromise is arrived at. Contest the case and defeat their claim. Engage a lawyer t help you.

In legal notice they would have given 15 days time to make payment.  After passing 15 days that will file complaint under section 138 NI Act in the court.   The court will send summon to you.  On non responding to summon, court will send you bailable warrant. On your non appearance, the court will send you non bailable warrant.    Now, you can present in the court and get the NBW cancelled and take bail because it is a bailable offence.  On the first appearance in case you submit in the court that I am ready to give the cheque amount, the complainant has to receive the same and the case would finish.  (You may seek 3/4 months time or make payment in 3/4 installments and the court may allow you).   Rest you may know when you hire defence advocate to contest your case.  Now, you have sufficient time to make the payment and to avoid interest,make the payment of cheque amount on the first date of appearance in the court.  

Reply to notice refuting there claim and as much payment already made. You have online transaction proof. You may win the case.

You have to reply or make payment within 15 days of notice, if not paid than complaint will file in court. 

Court prodeeding takes long time and giving money on interest without lending license, case not maintainable u/s 138 NI act.

You need to draft a fine notice through lawyer giving reply to the said notice to them. Then if any case is filed contest the same in court

Dear sir, 

You can reply to the legal notice denying that an amount of Rs. 9,00,000/- is due. State the actual amount. 

Further state that, you had only given a blank cheque as a collateral security and that they are not authorized to enter an amount as per their wishes. . 

You have a time of 15 days after which they can initiate 138 proceedings. 

You can also call them upon for a full and final settlement and avoid any court proceedings. They would most likely be interested for a settlement. 

Best wishes.  

Sir 

Kindly Appoint a lawyer and reply to the legal notice  as per your evidences available and let your defense be decides according to the documents available, else  let the complainant  file a complaint before the court and you show your bona fide that  you are willing to pay and have already been paying the interest till Feb 2020.

The court will send the matter into mediation and you can get time.

1. you have to reply the notice within the stipulated time i.e. 15 days from the date of receipt the legal notice,

2. non-reply to the legal notice may be presumed as an admission of the facts/allegations mentioned therein,

3. if you have signed the cheque then the burden lies on you to prove that you are not owing any amount to the complainant,

4. try to settle the matter amicably,

5. you may get a time of 1-2 years through litigation,

The details which you have shared needs to be captured in replying the Notice.  Deny the allegations which are false and created to make wrongful gain. Furnish the details of interest paid  and the amount returned by you, and deny all the other allegations, it is they who need to prove there case.

They will file the case within 30 days after expiry of 15 days time granted to you from date of service of notice on you.  However, you need to deny their wrongful notice claim, and if you wish to settle the amount you can offer them the actual amount which they are entitled to.

The same thing can be contested in court, in all probability, they will lose the case if you furnish the details of amounts paid by you.  They have to prove their claim with material proofs. 

- Since you have received legal demand notice under the N.I.Act for bouncing of cheque , and if you want to pay the demanded amount , then you have 15 days time from the date of receiving the said notice. 

- Further even you will reply the said notice , and failed to pay the amount within the stipulated periods , then your friend will file a case before the court . 

- Further ,as you have proof of payment , then after receiving the summons from the court , you can produce the said payment proofs before the court .

- However, after getting the summons from the court , you will have to take bail after producing a surety , which will granted easily. 

- Further during the proceedings , you can settle the dispute with your friend with the amount which is really due towards you . 

I would suggest you to take help of your lawyer to draft the reply of legal notice, all the transaction that took place via online will be a valid proof that you have paid the principle amount. And anybody without license cannot charge any interest, it's a criminal offence.

Hope this helps.

Regards

You can reply the legal notice by stating that you did borrowed only 5lakhs and is ready to pay the amount back.

They will surely file a case if you didn't return the amount in the time frame mentioned in the notice. But the same thing can be said in front of judge.

1. IF the said Money Lender was not having "Money Lending Licence" and RBI license, THEN money lending for Interest is illegal and a prosecutable offence on part of the money lender.

2. Bye virtue of the above, you are not liable to pay anything to the money lender and neither can any cheque bounce court case can sustain against  you, in any manner, whatsoever.

3. Court's do not take into consideration cheque bounce cases filed by un-licensed money lenders.  This has been upheld in  several HC /SC judgments.

You can defend. You will have to prove that the cheque was given as a security only not for repayment. Also to show the details of repayment. In such case onus is upon the accused to prove that there is no debt or liability.

When the cheque bounces, the payee has to file a legal notice within 30 days of return memo from bank. After this, if the drawer makes the payment, there is no need to file the case. If he doesn't make the payment then case has to be filed within 30 days

They will file a case under the negotiable instruments act ie cheque bounce case.

You should take anticipatory bail immediately.

Also be prepared for the case.

Ask the court for a one time settlement or some time to pay the balance.

1. Irrespective of whether the promissory note had been executed out of friendship or anything else you are bound by the promissory note.

2. Prima facie you are bound to make the payment of the amount covered by the cheque which has now been dishonoured.

3. Reply to the notice through your lawyer.

4. It is for you to decide what time you want to seek. You cannot prevent him from filing the criminal complaint under 138 NI Act.

5. The complaint under 138 NI Act has to be filed within a month from the date on which the 15 day period to pay the amount expires.

1. Hire an advocate for sending reply to legal notice and demand time for repayment of money through reply. 

2. Let them file suit and approach them for settlement as soon as you have funds to clear the loan. 

1. As per the information mentioned in the present query, makes it clear that you have now been served with the legal notice for the return of amount, and may need sometime to return back.
2. I would like to apprise you that you need to reply to the notice and seek some tine as well.
3. If they deny and they happen to file the cheque bounce case on you then you should contest the case as the interest rate is very high as per the normal norms carried out by any financial institution or bank, and also he cannot lend any money interest not being the financial institution, so they can also be under law of action.