My neighbor borrowed money from someone and used a blank check I gave him as security. He ran away with the cash. Now, the lender filled in the check for ₹90,000, it bounced, and he’s suing me. I never took the money and have no other proof of the transaction besides the check. Am I legally responsible for the debt?

Apni Law
Apni Law
Law Forum › Category: Cheque Bounce › My neighbor borrowed money from someone and used a blank check I gave him as security. He ran away with the cash. Now, the lender filled in the check for ₹90,000, it bounced, and he’s suing me. I never took the money and have no other proof of the transaction besides the check. Am I legally responsible for the debt?
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Apni Law Staff asked 7 months ago

My neighbor borrowed money from someone and used a blank check I gave him as security. He ran away with the cash. Now, the lender filled in the check for ₹90,000, it bounced, and he’s suing me. I never took the money and have no other proof of the transaction besides the check. Am I legally responsible for the debt?

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Best Answer

Apni Law Staff answered 7 months ago

You are likely legally responsible for the debt. Under Indian law, giving a blank check as security means you are guaranteeing payment. The lender can sue you for the amount on the check, regardless of whether you received any benefit from the loan.

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