Ask bank to give in writing that c amount is paid in full and final settlement and no further amount is due and payable by guarantor and to withdraw cheque bouncing case filed against  him 

In such cases of OTS/OCS, after an agreement is reached, the bank usually calls for an offer letter from the borrower/guarantor expressing their willingness to pay the sum agreed in full quits on or before a set deadline. The bank will then give them an acceptance letter. Then, it becomes binding on both parties. However, if there is a default in payment, the bank shall be at liberty to set aside the OTS/OCS, and proceed further legally against the borrower/guarantor. If payment is done within time, the bank shall have no further recourse.

Dear Client,

In the Present Scenario, your relative is facing a criminal case in relation to cheque bounce, as he is a guarantor to a loan taken by his friend in a Cooperative Society Bank, wherein the amount came up to Rs. 3,50,000. Presently, the bank has agreed to take back the case if he pays back Rs. 1,50,000, and hence you wish to enquire on the legal course of actions to be taken so that the back does not ask you to pay the remaining amount, and if there is an option to recover the amount paid by you to the bank. Herein, firstly, it is suggested that your relative has a negotiation with a bank for a formal settlement and agreement of only up to Rs. 1,50,000 from your relative, and not ask the remaining Rs. 2,00,000 for the cheque bounce. With respect to the recovery of amount from his friend, your relative may file a suit under the Specific Relief Act or the Indian Contract Act, claiming that your relative is the guarantor and hence, entitled to recover the amount paid for his friend. To prevent from any future course of action, it is recommended that the statement, of bank to release your relative from recovering for further claims, is clearly documented.

Hope you find this answer beneficial for resolving the dispute.

- If your friend is agreed to pay the compromised amount to the bank , then the Cheque bouncing case under section 138 N.I.Act can be withdraw by the bank. 

- Your friend should mention to the Court at the time of withdrawn of the case to record the statement of the bank official that no other case will be filed by the bank for the said loan. 

A cheque bounce case can be initiated against the drawer of the cheque and the guarantor cannot be implicated in the cheque bounce case if he has not signed the cheque. 

If your relative has issued his  personal cheque towards repayment of borrowed amount, then he should be worried about it because he would be liable for the offence of bouncing the cheque. 

In that case, it is not understood that how come bank is coming down to accept the amount reduced by  more than 50% of the liable amount? 

If the bank is offering  to withdraw the cheque bounce case on payment of the reduced amount then he can get it done through lok adalat by signing the terms in that context which the bank cannot withdraw at a later stage. 

Whatever, it is advisable that it should be clearly documented to avoid future litigation in this regard

If it is a civil money recovery suit and if your relative had given any property as collateral security then as a guarantor he need to be worried about the non repayment of loan amount by the borrower because the bank has to first exhaust the recovery options from the borrower first. 

A compromise in writing needs to be entered into, and placed before the Court which is proceeding with the cheque bounce case and must be taken on record.

Later, on the strength of the said compromise the Court will mark the case as closed and consigned to records 

1. Be very careful for such offers of the Bank since in most of the cases the Banks recover whatever they can and then continue to claim the balance amount.

2. Enter in to an agreement with the Bank mentioning the terms that the Bank will withdraw the case after en-cashing the cheque and shall not claim the balance amount in future.

3. The Bank will issue no due certificate to the guarantor immediately after encashing the cheque.and the Guarantor will not be liable for paying the balance amount or any other amount once the said cheque is encahsed.