Can I take legal action against unpaid cheques?
I had given ₹5,00,000 twice (₹10,00,000 in total) to my elder brother in the presence of one of my friends and another person. In return, he gave me two cheques from his joint account with his wife. One cheque had the amount and signature filled in, and the other had the date and signature. Now, when I am asking him to return the money as per his promise, he is threatening me and telling my friends to "go to court if you want the money — I won’t return it." He is now claiming that the cheques were not signed by him, and since it's a joint account, his wife may also file a case against me for forgery. However, the two persons who were present when I gave him the money are ready to testify in my favor. Please suggest what legal action I can take.
File a recovery suit under the Code of Civil Procedure - Order 37, for the money. The Order provides for a summary procedure for recovery of debt when the case is based on loan by cheques or promissory notes. It can be filed for within 3 yrs of the loan or the acknowledgment of debt. Under the Negotiable Instruments Act, 1881 even a partially filled or blank signed cheque received from the elder brother is assumed to be for the repayment of debt. This also provides an opportunity to counter claim forgery and other allegations made by the brother. To create a stronger case, gather circumstantial evidence like WhatsApp Chats, Messages, Emails that will help acknowledge the loan. Also, having witnesses who were present when the loan was provided or discussed works in favour.
You should file a police complaint (FIR) for cheating and criminal breach of trust against your brother. Also, present both cheques and file a case under Section 138 of the Negotiable Instruments Act if they bounce. Your two witnesses will help your case. Do not worry about threats, if the cheques are genuine, forgery claims will not stand in court. For further legal assistance contact us on our helpline number.
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