POSTED BY January 8, 2014 8:19 am COMMENTS (2)ON
A person has issued me a post date cheque with a promise that he will repay the amount in cash before that.
I know the scenario of cheque bounce. However, what happens if the person has closed the account before that and then absconded? OR, if the person has intentionally signed with incorrect signature and absconding OR he has cancelled the cheque, closed the account and then absconding.
Do I have a chance to raise a complaint against the person and win the case?
What measures can I put in place that I am not cheated?
Meanwhile, I have taken his PAN card number, Driving license Xerox and also he will be giving a written letter on stamp paper that he will be paying the amount he owes me by certain date. Should this be sufficient?
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2 replies on this article “What are the Risks involved in accepting post dated cheques ?”
Why lend money on such terms and then live in stress?
As you have the PDC’s you can deposit the cheque before the date stated on it. Anything can happen in between. The person can disappear without paying you in cash (as stated) or may be he pay you and take back his cheques.
Assume the scenario of person refused to pay. You need to deposit the cheque and in case it bounces in bank, you can file a case directly in local court (where you are residing) availing the help of an advocate. Advocate shall issue a notice to the person and then file a case along with supporting such as the agreement between both of you on transaction and terms of payment, bounced cheque, dis-honor acknowledgement from bank etc.
It depends how much time will the magistrate take to announce his judgement. Else, you may end up doing an out of court settlement as well.
Hope the letter that you on stamp paper is signed by both parties in presence of a third person as witness.