cheque returned with remarks" insufficent funds"

This query is : Resolved

KAPIL (Querist)
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29 October 2010 Sir,

I was issued a blank cheque to complain tat for purchase of plot four year back with a request to prepare agreement to sell. But did not make any agreement with me after number of times visiting into his office nor returned my cheque.Ultimately, I compelled to withdrawn a money from bank. Due to non-maintaining account, bank closed my account. After four year, complain tat had deposited a cheque of Rs.2Lac into my bank without giving information to me. Bank returned the same cheque with remarks "insufficient fund" while my account has already been closed three year back due to non maintenance by bank. Now, complaint tat has filed suit on me with the remarks that he has given 2Lac cash loan to me against the same cheque.Please justify it, what i do.

KAPIL

KAPIL (Querist)
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04 November 2010 not solved

Asha Kanta Sharma

Asha Kanta Sharma (Expert)
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19 July 2024 Based on the situation you described, here are some key points and steps you might consider:

### Key Points to Consider:

1. **Blank Cheque Issuance:**
- You issued a blank cheque to complainant for the purpose of preparing an agreement to sell a plot.
- However, no agreement was made, and the complainant did not return your cheque.

2. **Bank Account Closure:**
- Due to non-maintenance of the account, your bank closed your account three years ago.

3. **Cheque Presented After Account Closure:**
- The complainant deposited a cheque of Rs. 2 lakh into your closed bank account without your knowledge.
- The bank returned the cheque with the remark "insufficient funds" because the account was closed.

4. **Legal Action:**
- The complainant has filed a suit against you, claiming that he gave you a cash loan of Rs. 2 lakh against the cheque.

### Steps to Consider:

1. **Consult Legal Advice:**
- Seek legal counsel immediately to understand your rights and obligations in this situation.
- A lawyer can provide specific advice based on the laws applicable in your jurisdiction and the details of your case.

2. **Documentation:**
- Gather all relevant documents related to the issuance of the cheque, communication with the complainant, and account closure by the bank.
- These documents will be crucial in defending your case and proving your position.

3. **Defend Against False Claims:**
- If the complainant is falsely claiming that he provided you with a cash loan against the cheque, you will need to present evidence to refute this claim.
- Provide documentation showing that the cheque was issued for a different purpose (e.g., for the preparation of an agreement to sell the plot).

4. **Court Proceedings:**
- Attend all court proceedings as required and present your case with the assistance of your legal representative.
- Follow the legal process and respond to any claims or allegations made by the complainant.

5. **Resolution:**
- Work towards resolving the matter through legal channels, aiming to demonstrate that you did not receive any cash loan from the complainant against the cheque.

### Additional Considerations:

- **Fraudulent Claims:** If there is any indication of fraudulent activity or misrepresentation by the complainant, bring this to the attention of your legal counsel and provide supporting evidence.
- **Bank's Role:** Discuss with your lawyer the implications of the bank's closure of your account and how it affects the legal proceedings.

### Conclusion:

Handling a legal dispute like this requires careful documentation, understanding of legal rights, and timely action. Seek immediate legal advice to protect your interests and navigate the situation effectively. Be prepared to present evidence and arguments that support your position regarding the issuance and purpose of the cheque.

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