Query: I had taken a loan of ₹ 5 lakhs from a private financer. At the time of advancing loan, the financer had also obtained security cheques from me. Although, the loan amount with interest has been repaid, but the financer did not return the security cheques. He misused the same by filing a false case under Negotiable Instruments Act. How should, I defend myself.
Answer: Issuance of security cheques is a good defense which is also legally acceptable. But, you have to prove that the cheques in qestion were given by way of security and the same have been misused by the complainant. As there is a presumption under section 139 of Negotiable Instrument Act that there exists a…
