my friend conducted unregistered private chit business i am one the member after lifting the chit i issued the blank signed cheque in favor of my friend for security purpose then i paid the total chit amount without any default. my friend not returned the cheque to me and filed false cheque bounce case against me only i am having chit pass book which is signed by my friend after receiving chit amount from me. i filed the same before court but my friend denies his signature on chit pass book court also not consider the chit pass book on my side evidence. now i have no proof to prove the cheque is issued for chit security purpose. pls guide me how to prove my case.
1 Answer from Attorneys
Your argument should be that the since there is no legally recoverable debt hence the proceedings should be set aside. Firstly you have to show to the court that his chit business is illegal. Unregisterered chit funds are not recognised by law. You gave your security check in utter ignorance of his running the business in an unregistered manner. Even if the pass book entries are not being accepted even then his debt is not recoverable from you since he is running his business illegally and your due if any is not legally recoverable.
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