A proprietor firm "ABC Traders" continuously do's the business with a Private Limited Company. The "ABC Traders" gets credit upto 70 Lakh from the said Private Limited Company. Later point of stage the "ABC Traders" incurred loss and the bank account gets NPA, during the crisiss the proprietor firm gradually reduced the credit limit from 70 Lakh to 21 Lakh.
The proprietor firm receives the email from the said Private Limited Company, states that
We had countless discussions about the long pending credit issue of ABC Traders and you are asking some more time, each and every time. In all the discussions, you asked for a week’s time and not kept your words. We forced to believe that you are not showing any interest to clear the long pending credit. Now company decide to put the cheques for collection. We request you to clear the cheques by arrange the required funds and honor it.
The total outstanding amount for "ABC Traders" is 21,11,365/- we already gave the account statement for your information. We would like to clear the issue and continue our business with you smoothly. Hope you understand and settle the balance and help us to serve you better
The ABC Traders replied to the said email conversation, states that we are not in position to settle in one shot immediately, we will reduce the dues in each purchase transaction by paying extra amount approx 25K to 50K along with the invoice amount.
But the said Private Limited company deposited the cheque (Un-dated blank cheque) without getting confirmation. Also filed a case under section 200 Cr.P.C. for an offense under section 138 and 141 of the negotiable instrument act.
Note: The said private limited company did not get any confirmation regarding the payment and deposited the cheque which was given for security purpose at the time of inception of business.
What is the legal remedy for the ABC Traders to prove innocence ? Also the said case is maintainable ?
Location: Tamilnadu, INDIA.