Apni Law Staff asked 9 months ago
My friend lent their car to someone and took a blank cheque as a security, with no formal agreement. Now, the borrower has written a huge amount on the cheque, deposited it, and is threatening a cheque bounce case. Is there a chance of a warrant being issued, or will it just be a legal notice? They didn’t promise to pay anything, and the cheque was only for security. The borrower is trying to cheat them by claiming a 5 lakh rupee loss.
Best Answer
Apni Law Staff answered 9 months ago
In this case, the borrower likely acted in bad faith by writing a large sum on the blank cheque. While a warrant is possible if the cheque bounces, the court will consider the lack of a formal agreement and the security purpose of the cheque. A legal notice should be sent to challenge the borrower’s claims, highlighting the misuse of the blank cheque and absence of a loan agreement.
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