For A Mortgage Loan Can A Bank Put Recovery Case And Also Cheque Bounce Case

You can settle in Lok adalat,.. Interest will be lowered to great extent.. Ask ur lawyer to arrange for it..

ntimating the borrower that the loan amount towards the repayment of loan of which the cheque was given by him (borrower) to the lender as security, is not payed as agreed, the said cheque will be enchased by him by presenting it to the bank. If the borrower does not repay the loan amount to the lender despite such demand being made against him by the lender then only the lender would become entitle to present the said cheque to the bank for its encashment. In the present case, the evidence of the Complainant does not disclose that she has issued the notice before presenting the cheque for encashment. Since the cheque is issued for security or any other purpose the same would not come within the purview of sec 138 of the act as it has not been issued in discharge of the debt as held the Hon'ble Supreme Court in AIR 2006 SC 3366.

Due to some mis-interpretation some court are taking cognizance on 138 cheque case.. but it's wrong.. file a quash in High court.. Earlier "... having regard to the purpose with which provision under section 138 is introduced subject to presumption and proof, if it is proved that the cheque is given as security then section 138 would not be applicable. Reliance is placed upon the decision of Apex court in M/s. Narayana Menon vs. State of Kerala AIR 2OO6 SC 366 "if defense is acceptable as probable the cheque therefore cannot be held to be have been issued in discharge of the debt for Eg. the cheque is issued for security or for any other purpose would not come within in perview of section 138 of the Act." Later the decision of the Hon'ble SC reported in*Phone*SCC wherein, the Hon'ble SC has observed, "the present is, however, a case where the existence of the debt / liability was never in dispute. It was on the contrary acknowledged and the promised was made to liquidate the same within one month. Failure on the part of the debtor to do so could lead to only one result viz. presentation of the cheque for payment and in the event of dishonor, launch of prosecution" In the very same decision the Hon'ble SC at para No.13 line 2 has observed, If cheques were issued in relation to the continued contract or business where no claim is made on the date of the issuance nor any determinate amount payable to the holder, one could perhaps argue that the cheque cannot be presented or prosecution launched on a unilateral claim of any debt or liability" The circumstances before the court indicate that the cheque might have been given at the time of availing the loan and so cheque cannot be presented without giving notice. 22. In case cheque is taken by the lender from the borrower as security towards repayment of the loan advanced by the former to later, such cheque cannot be said to have been issued by the borrower to the lender towards discharge of existing debt unless there is agreement between the lender and the borrower that inevent of failure on the part of borrower to repay the loan amount on or before the specified date the lender would be entitle to present the said cheque to the bank for its encashment. In the absence of such an agreement, in order to enforce the liability of the borrower to repay the loan amount, the lender has to demand repayment of the loan from the borrower by issuing him notice in writing or by making oral demand, duly int

1)both civil case for recovery of cheque amount and criminal complaint for cheque dishonour are maintainable 2) civil case is for recovery of money and criminal complaint is for punishment 3) Bombay high court has held that both cases are maintainable