Recovery of money
Hi! we have lent money to this man who i was supposed to do business with. We did not get into the business at all because he wasnt ready to contribute finance. The money that i had lent for the business has not been returned to me despite of me asking for almost a year. Constantly asking and prssurising him but no response. Now, he has even stopped taking my calls or msgs. How can this be preceeded legally.
You have the following options-
Civil remedies The most common civil remedy for recovering money is Order 37 of the Civil Procedure Code, which allows a creditor to file a summary suit. Compared to normal suits, summary suits are disposed of faster. Once the suit is instituted and the summons are issued, the defendant has 10 days to make an appearance, failing which the court assumes the plaintiff 's allegations to be true and, accordingly, awards the plaintiff. If the defendant makes an appearance, the court accepts his defence only if it is convinced that it is substantial to the case in question. Where the matter concerns penalties or any other uncertain amount, one cannot file a summary suit. Criminal proceedings You also have the option of initiating criminal proceedings against the defaulter under the Indian Penal Code, 1860. You can either file a case of criminal breach of trust or cheating, or even mischief. These are the following sections you can file a case under-
However, criminal cases are time consuming and economically not viable.
Out-of-court options One of the fastest and most economical ways of recovering money is to opt for an out-of-court settlement, such as arbitration or conciliation, provided that the other party is also willing to settle in this manner. If the matter is referred to an arbitrator, the latter hears both the parties and passes an award binding on both. The award can only be appealed on three grounds. One, if it is invalid, two, if the defendant is not given adequate time to present the case, and three, if he was not given notice about the arbitrator's appointment . In fact, if a proposal by an inter-ministerial group set up last year to look into policy and legislative changes to tackle the large number of pending cases is accepted, then the cases of dishonoured cheques will have to be decided only through arbitration, conciliation or settlement by lok adalats.
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