Reading: I gave a cheque for ₹7 lakhs to someone, with the understanding it would be a security cheque if they provided expense receipts. They refused to give us the receipts and we specifically asked them not to deposit the cheque before informing us. We also stopped payment on the cheque. However, they went ahead and deposited it anyway, causing it to bounce. Now they’re threatening legal action if we don’t pay. What are our legal options? What if they take us to court? Could we get some time to pay? Is there an EMI option? Or can we fight this and avoid paying altogether? Please advise.

I gave a cheque for ₹7 lakhs to someone, with the understanding it would be a security cheque if they provided expense receipts. They refused to give us the receipts and we specifically asked them not to deposit the cheque before informing us. We also stopped payment on the cheque. However, they went ahead and deposited it anyway, causing it to bounce. Now they’re threatening legal action if we don’t pay. What are our legal options? What if they take us to court? Could we get some time to pay? Is there an EMI option? Or can we fight this and avoid paying altogether? Please advise.

Last updated: August 25, 2025 12:58 pm

Apni Law

2 years ago

Law Forum › Category: Cheque Bounce › I gave a cheque for ₹7 lakhs to someone, with the understanding it would be a security cheque if they provided expense receipts. They refused to give us the receipts and we specifically asked them not to deposit the cheque before informing us. We also stopped payment on the cheque. However, they went ahead and deposited it anyway, causing it to bounce. Now they’re threatening legal action if we don’t pay. What are our legal options? What if they take us to court? Could we get some time to pay? Is there an EMI option? Or can we fight this and avoid paying altogether? Please advise.

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Apni Law Staff asked 2 years ago

I gave a cheque for ₹7 lakhs to someone, with the understanding it would be a security cheque if they provided expense receipts. They refused to give us the receipts and we specifically asked them not to deposit the cheque before informing us. We also stopped payment on the cheque. However, they went ahead and deposited it anyway, causing it to bounce. Now they’re threatening legal action if we don’t pay. What are our legal options? What if they take us to court? Could we get some time to pay? Is there an EMI option? Or can we fight this and avoid paying altogether? Please advise.

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Apni Law Staff answered 2 years ago

You have a strong legal defense as the cheque was issued for a specific purpose (security) and the payee violated the terms by depositing it without providing receipts. If they take you to court, you can raise these points and argue for dismissal of the case. You can also seek an injunction against them to prevent further action. An EMI option is not available in this scenario, but you can negotiate a settlement with them.