Party claiming Rs.2lac from me

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KAPIL (Querist)
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22 October 2010 Sir,

I was given a cheque to him as token money against property, i said him that the same cheque will be encashed only if makes agreement with me in written. But he did not make any agreement with me nor return cheque to me. I had number of time visited in his office with my wife, he did not given back my cheque.He is a chartered accountant. I compelled to close my saving account from where that cheque was given. When he presented the same cheque into bank, the bank return the cheque to party with remarks "insufficent fund". Now he has filed suit upon me with the demanding Rs.2Lac under section 138. He is saying that he has given cash loan to me against this cheque. What I do, Sir. Can u sir please tell me that any peron can receive huge amount in cash as loan while as per income tax law said that no body can receive more than Rs.20000/- in cash. Please explain it with if any having court judgement by email: kapilbhatia2004@yahoo.co.in

CMA. Subhash Kumar Jha

CMA. Subhash Kumar Jha (Expert)
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22 October 2010 But.. while paying the cheque, you must have taken some receipt from the party.

That receipt will prove the validity of your claim.

KAPIL

KAPIL (Querist)
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22 October 2010 Sir,

he did not given me any receipt against issuing cheque. What I have to do , sir.

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sivasankar

sivasankar (Expert)
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23 October 2010 Sir,
Reply to him with a help of lawyer by asking him show the proof for giving the cash loan.If can prove the cash loan only he can sue you.Moreover as per 269SS of Income tax act before receiving a loan above Rs.20000 the receiver should get loan only by cheque.This mistake is on your part.
But his source for Rs.2lacs will be also under question.He is equally under risk like you.Talk to him all this things boldly with the help of a lawyer or with a help of another CA who is senior to the CA who creates problem to you.