Defending Against Misuse of Security Cheques in Cheque Bounce Cases

In India, cheque bounce cases are common under Section 138 of the Negotiable Instruments Act, 1881. Sometimes, a cheque given as security for business dealings is misused by someone claiming it was for a debt. This article explains how to defend yourself in such cases by showing the cheque was only for security, not a loan, and was misused.

We’ll use simple English to explain the defense and suggest questions to challenge the complainant’s claims.

Note: This article is for educational purposes only and is not legal advice. For proper legal help, contact a qualified lawyer. Legal Light Consulting is not responsible for this content.

Scenario: Security Cheque Not for a Debt

In this case, you gave a cheque to someone you do business with as a security, not to pay a specific debt. For example, you might give a security cheque to ensure trust in ongoing transactions.

The complainant claims you owe them money and uses the cheque to file a case when it bounces. Your defense is that you didn’t owe them anything, and they misused the security cheque.

How to Defend Yourself

Explain that the cheque was given as security for business dealings, not for a loan or debt. Then, ask questions to show the complainant has no proof that you owed them money on the day the cheque was presented.

Questions to Ask the Complainant

Here are questions to challenge the person who says you owe them money:

1. How many years have you been doing business with me?
   This checks how long your business relationship has been and if they can prove it.

2. How do you settle accounts in our business dealings?
   This asks if they follow a clear process, like payments or invoices, to settle accounts.

3. Do you take security cheques from others you deal with?
   If they often take security cheques, it supports your claim that the cheque was for security, not a debt.

4. Do you keep a statement of accounts for our transactions?
   They should have records of all dealings if they claim you owe money.

5. Can you show the statement of accounts?
   Ask for proof of the records to see if they are genuine.

6. Where in the statement of accounts does it show I owed the cheque amount on that day?
   This forces them to prove you owed the exact amount when the cheque was presented.

Additional Questions to Strengthen Your Case

These questions focus on the complainant’s history and habits to find weaknesses in their story:

• Is it true that even before this, Ashok ji had taken a loan from you?
  (क्या यह सही है कि इस लोन के पहले भी अशोक जी ने आपसे लोन लिया था?)
  This checks if they claim past loans that may not exist.

• Is it true that you keep helping your friends with loans?
  (क्या यह सही है कि आप अपने दोस्तों को लोन के रूप में मदद करते रहते हैं?)
  If they often give loans, they need proof for this specific case.

Why These Questions Help

These questions make it hard for the complainant to prove you owed them money. If they can’t show clear records or explain why the cheque was used, their case looks weak. You can argue they misused the security cheque to falsely claim a debt.

Conclusion

If someone uses a security cheque to claim you owe them money, you can defend yourself by proving the cheque was not for a debt. Use these questions to challenge their story and show they misused the cheque. Always work with a lawyer to build a strong defense.

For expert legal help in India, contact Legal Light Consulting – LLC Lawyer or NRI Legal Services. Reaching out does not create an attorney-client relationship.

Disclaimer: This information is not legal advice. For advice about your situation, contact a licensed attorney. This article is for informational purposes only. For expert guidance, consult Legal Light Consulting – LLC Lawyer directly.