My son took loan from a private finance company, during taking loan he gave undated signed blank cheque on 28/12/2007, loan was given on 03/01/2008, he was paying daily instalment as per term of loan, representative of company was collecting money in cash but not giving any receipt, but a small piece of paper showing amount,and entering amount in a card provided by company, the boy suffered losses and had to close the shop, in june-2008, he closed his account also in bank in May-2008, from which he issued the cheque.

On 31/05/2010, After about 20 months company presented the cheque for more than double amount due to them, which was returned with remarks “No such a account exists”. company has filled case under section 138, 141, 142 of Negotiable Instrument act.

company has claimed that, he (my son) after getting notice came to their office and gave cheque on 29/05/2010, by which accused came to company’s office and delivered the cheque.

When he was not living at address on which notice was supposed to be sent, how he received and gave old cheque of account which was closed in May-2008?

From bank statement it can be proved that cheque was given at the time of loan as cheques issued after this cheque were cleared in account, more over one more cheque book was issued. We can give evidence of sureties and persons who took loan from company that company takes blank cheque at the time of signing loan agreement.

What is defense in the case, How to prove that complainant lied that cheque was given on 31/05/2010

Is there any Supreme Court citations in support of our defence?

Thanks in anticipation

S.K.Kapoor

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