Legal Question in Banking Law in India

about PDCS against housing loan

housing loan was senctioned on7th feb 2003.bank has taken 50 blank cheques except signature and one cheque they present on 10th oct 2003 of Rs.10 lac 17 thousand and cheque was bounced by the same bank.then bank file a criminal case under section 138.and after one years bank again present 8 cheques in the same account and get celared all the chequesfrom my account.are bank is in the leagle position to present all the cheques after recalling the complete loan and filing case under senction 138?


Asked on 12/04/08, 10:36 am

5 Answers from Attorneys
Homi Maratha N.N. Maratha & Co.-Advocates

Re: about PDCS against housing loan

I would advise you to go for settlement to avoid litigations as the bank can initiate a action.

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Answered on 12/17/08, 7:03 am
J. Radhakrishnan independent Practice

Re: about PDCS against housing loan

If the subsequent cheques equivalent to the outstanding loan got cleared, you can have the complaint under Sec.138 N.I.Act on the basis of the dishonoured cheque for the whole amount of the loan quashed by bring it to the notice of the court about the subsequent development. Also issue notice to the Bank to surrender the blank cheques if the loan has been discharged by payment of the earlier cheques, with notice to the Bank. Anyhow, consult your lawyer with documents and proceed.

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Answered on 12/06/08, 11:13 pm
Sudershan Goel India Law Offices of Sudershan Goel - Advocate

Re: about PDCS against housing loan

Yes, the bank may initiate appropriate action.

You should consider a settlement to avoid litigation and costs.

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Answered on 12/04/08, 8:47 pm
Aniruddha Pawse Aniruddha.P.Pawse Advocates

Re: about PDCS against housing loan

Is the case going on ? If yes bring the facts before court and ask bank to withdraw case if dues are settled

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Answered on 12/05/08, 7:24 am
Nasir Butt Nasir Law Associates

Re: about PDCS against housing loan

Holding and issuing blank cheques is amazing. If the loan has been fully paid, bring it into the knowledge of court and subsequently stop payment against remaining cheques.

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Answered on 12/05/08, 9:08 am


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