It is very difficult to reply on facts of a case without actually going through all the relevant documents. Let me try to help you on the basis of whatever limited facts are known to me.
Firstly, the burden is on the complainant to prove the offences alleged against you, such as cheating. You have said that there is no written or oral agreement or document. In such a situation, it would be difficult for him to show for what specific purpose the amount was given to you. Generally, it would appear that he had given a loan to you by giving you a cheque. But, if a loan is not repaid, partly or fully, it is generally not a case under Section 420, 406 IPC, but a civil matter, for which a civil suit for recovery of amount needs to be filed.
On the other hand, if he himself states that the amount was paid to you for shares, then the value of shares is always subject to market fluctuations. But, in this situation, the question would also be as to whether you were licensed to trade shares on behalf of another person [such as a portfolio management service (PMS)].
The amounts mentioned by you are mentioned differently at 3 places. At one place, you wrote Rs. 3 lakh, at another place Rs. 2.20 lakh, and at yet another you wrote about repayment of Rs. 2 lakh and a further demand of remaining amount of Rs. 2 lakh (which implies Rs. 4 lakh). Anyway, that is a separate issue. You know the correct amount.
The fact that you have repaid Rs. 2 lakh to him, which may though be party payment only, shows that you had the intention to repay, which implies that you did not have intention to cheat since the beginning.
Ultimately, it would depend on the detailed facts of the case. Your defence and reply would depend on what the specific facts of the case are, including his allegations. It is not possible for us on a forum like this to go into detailed facts of a case. We can help you about your doubts about legal points or procedures, but on facts our guidance may not be perfect in the absence of having seen the detailed facts and documents of the case. You should consult some local lawyer. If needed, you can approach Legal Aid Cell in the High Court or District Court, which generally provides free legal services or may be at a very nominal pay, and show them all your documents.
Dr. Ashok Dhamija is a New Delhi based Supreme Court Advocate and author of law books. Read more about him by clicking here. List of his Forum Replies. List of his other articles. List of his Quora Answers. List of his YouTube Videos.
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