My neighbour started a 20-month chit fund in our town for ₹1 lakh. I gave them a blank cheque as security and paid my monthly installments on time. Now, the organiser has disappeared with everyone’s money after losing some of it to others in the chit. I recently got a court summons from someone I don’t even know. How can I resolve this situation?

Apni Law
Apni Law
Law Forum › Category: Cheque Bounce › My neighbour started a 20-month chit fund in our town for ₹1 lakh. I gave them a blank cheque as security and paid my monthly installments on time. Now, the organiser has disappeared with everyone’s money after losing some of it to others in the chit. I recently got a court summons from someone I don’t even know. How can I resolve this situation?
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Apni Law Staff asked 5 months ago

My neighbour started a 20-month chit fund in our town for ₹1 lakh. I gave them a blank cheque as security and paid my monthly installments on time. Now, the organiser has disappeared with everyone’s money after losing some of it to others in the chit. I recently got a court summons from someone I don’t even know. How can I resolve this situation?

1 Answers
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Best Answer

Apni Law Staff answered 5 months ago

You need to appear in court and explain your involvement in the chit fund. Since you provided a blank cheque as security, the court may hold you liable for the amount owed. Consult a lawyer immediately to understand your legal position and potential defenses.

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