A year ago, two friends, let’s call them Amit and Bhavya, started a school. They appointed me, Chandan, as the principal and another friend, Divya, also worked there. We all invested some money in the school. Amit and Bhavya needed a school bus, so they asked Chandan and Divya to provide blank cheques with promissory notes. They used these cheques to borrow money from a financier. Sadly, the school had to shut down due to lack of permissions and low fees. Now, Amit and Bhavya are demanding their entire investment back, blaming us for the school’s failure. They haven’t even paid salaries for the last 8 months! I have all the evidence, including a message from Andhra Bank about a cheque for Rs. 5 lakh being received. Though we never took any money from them or the financier, they are claiming we are responsible. There was no formal partnership agreement between us. Now, they are threatening legal action. What should I do?

Last updated: August 25, 2025 1:01 pm

2 years ago

Law Forum › Category: Cheque Bounce › A year ago, two friends, let’s call them Amit and Bhavya, started a school. They appointed me, Chandan, as the principal and another friend, Divya, also worked there. We all invested some money in the school. Amit and Bhavya needed a school bus, so they asked Chandan and Divya to provide blank cheques with promissory notes. They used these cheques to borrow money from a financier. Sadly, the school had to shut down due to lack of permissions and low fees. Now, Amit and Bhavya are demanding their entire investment back, blaming us for the school’s failure. They haven’t even paid salaries for the last 8 months! I have all the evidence, including a message from Andhra Bank about a cheque for Rs. 5 lakh being received. Though we never took any money from them or the financier, they are claiming we are responsible. There was no formal partnership agreement between us. Now, they are threatening legal action. What should I do?

Vote Up
323
Vote Down

Apni Law Staff asked 2 years ago

A year ago, two friends, let’s call them Amit and Bhavya, started a school. They appointed me, Chandan, as the principal and another friend, Divya, also worked there. We all invested some money in the school. Amit and Bhavya needed a school bus, so they asked Chandan and Divya to provide blank cheques with promissory notes. They used these cheques to borrow money from a financier. Sadly, the school had to shut down due to lack of permissions and low fees. Now, Amit and Bhavya are demanding their entire investment back, blaming us for the school’s failure. They haven’t even paid salaries for the last 8 months! I have all the evidence, including a message from Andhra Bank about a cheque for Rs. 5 lakh being received. Though we never took any money from them or the financier, they are claiming we are responsible. There was no formal partnership agreement between us. Now, they are threatening legal action. What should I do?

1 Answers

Vote Up
28
Vote Down

Best Answer

Apni Law Staff answered 2 years ago

You should consult a lawyer immediately. Amit and Bhavya’s actions regarding the cheques and loan appear fraudulent, and you can potentially pursue legal action against them for misusing your signatures and causing financial harm. However, without a formal partnership agreement, establishing clear financial responsibilities and ownership of the school will be crucial in any legal proceedings.