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I surrendered a commercial vehicle to Chola Mandalam Finance due to business failure. However, they recently submitted a cheque to the bank which got bounced. Now they have sent a legal notice under the Negotiable Instruments Act. Is this case valid even though the vehicle was surrendered and the loan agreement is already terminated?
Yes, even if the vehicle is surrendered, if you gave a cheque and it bounced, they can file a case under Section 138 of the Negotiable Instruments Act. You should explain in court that the loan was closed and cheque was not meant for payment. Keep surrender and closure documents ready. For further legal assistance contact us on our helpline number.