check bounce - stoppage account
sir, my father running a business from 1978 all the documents (license) in my dad name. he is having some agriculture land also. His younger brother was with him from 1984 and helping him in business works. but don’t have any investments in that business. but to manage income tax they signed a partnership policy agreement in the year 1995 but didn’t register it. from 2000 my dad asked his younger brother to take care of the business and in good faith he signed blank checks for business purpose. two weeks back his younger brother sent my dad a legal notice claiming the business and half of the other property ” saying that he is partner of that business but don’t have any documents.. he himself mentioned about that agreement and also said that it was not registered and its not valid now..”
to act on it my dad gave a request to bank holding that business current account for the stoppage of that account.
we have a doubt if my dad’s younger brother miss used those blank checks will it come under check bounce case.. how to handle the situation. help us. we don’t have details about the check numbers from 2000 to till date… what we to do now? will there any chance to miss use those checks?
1 Reply
If cheques were signed in 2000, the validity would have expired in 6 months then. He cannot sue you for a blank cheque signed in 2000. Even if the cheque was dishonoured then, he still can’t sue because the period of limitation (time within which a case has to be filed in court) has expired.
Secondly, even if the partnership deed was not registered, it would still be valid. Your father could have signed a Power of Attorney in his name.