Neel Patel
Asked March 04, 2017

Loan not paid by friend

  • 3 Answers
  • 753 Views

My dad lended 2 lakh money to X and we were assured that he will pay back our money when ever we need it. He took the money form my dad as he was ditched by his business partner and he was in search for money because he had to pay money to his partners for business takeover, and he brought money from market at higher interest rate (4-5 %), so being a friend of my dad he asked my dad for money and even agreed to pay 2 % interest for 2 lakhs. He returned one lakh to my dad and later passed away on 21-6-2014 so now he is neither giving my one lakh rupees and even not giving the interest, my dad gave him money in cash. In the year 13-14-15 he payed the interest in the form of cheque. From 6-2016 he is not paying any thing and making excuse.

Answers 3

Firstly, you should be in a position to prove that you have paid 2 lakhs and not one lakh (as he may come-up saying one 1 lakh was paid to him [payment in cash wasn't a good ide]). Also because cheque does not specify interest rate.

However, since he is making an excuse, he appears to willing and/or dodging to pay the sum which amounts to acceptance. So it is advisable to get a post dated cheque(s) or a letter proving such debt by him.

If required try to settle the matter by bargain and make him pay atleast the major portion by giving some discount for early payment. 

All the best

 

Agree Comment 0 Agrees over 3 years ago

Are you money lenders? If no then you can not ask the interest on 1 lacks.another thing have you any documentary evidence regarding 2 lacks if yes then you can issue legal notice through advocate stating that 2 lacks given as hand loan without interest and claim the amount if he fails to pay then file civil suit.

Agree Comment 0 Agrees over 3 years ago

Firstly you need to give him a legal notice before initiating a recovery suit against Mr. X. You being the legal representative of your father can initiate a proceeding under Oder 37 of Civil Procedure Code, 1908. The interest given by Mr. X through cheque, is and evidence that he owed you some money.

Once the suit is instituted against Mr. X, the court will summons to him for which the defendant needs to appear the court within 10, failing which the court assumes the plaintiff 's allegations to be true and, accordingly, will dispose the matter I your favour. You can advance your case with the help of messages exchanged between the two of you.

You can also initiate a Criminal Complaint against him under Section 138 of the Negotiable Instruments Act in case the cheque gets dishonored. Also you can file a criminal case under section 405 of Indian Penal Code, 1860 that talks about criminal breach of trust that will make them liable for a punishment for 3 years.

 

 

Agree Comment 0 Agrees over 3 years ago

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