How to recover loan given to a friend through cheque

govind (Querist) 25 February 2018 This query is : Resolved
sir,
I am a retired lecturer, non registered pawn broker . But i donot lend money to any body for interest. except to two people and both of them have ditched me

i gave loan of two laks to another friend of mine to establish a school . He paid interest only for two months and since then he says that he will pay and now he is vanished from hyderabad and i have no knowledge of his where about .

I have taken a promissory note with one cheque written from 2,00,000 and another blank cheque. later i have come to know that he has cheated more people and he gave cheques to so many people

when i contacted my local friends not advocates, but real estate brokers they say that i cannot go to police nor court because i have mentioned an exorbitant interest of rs. 3% and in addition penal interest every day for rs. 200.

this fellow did not give an surety.

please suggest me how do i get my money please

regards
deekshitulu
9985271057

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Yudhish Padman S (Expert) 26 February 2018
Dear Sir,

It is true that receipt of exorbitant interest is illegal. But it does not deprive the Creditor, his right to recover his Principal along with permissible interest. In Tamil Nadu, the maximum permissible interest is 12% in normal cases. Workout your claim based on such interest and after deducting all payments received, verify if the outstanding is equal to or exceeds the cheque drawn amount. Thereafter, ensure whether the cheque is still valid. If yes, deposit the cheque in your bank account. If the cheque is dishonoured, issue him a statutory notice. If he had received the notice, you may approach the jurisdictional Judicial/Metropolitan Magistrate by a Private Complaint, subject to his response. If the notice returns, then you may approach the jurisdictional Police and lodge a Criminal Complaint praying for appropriate action. Hope this was helpful.

Regards,
S. Yudhish Padman, Advocate.
Madras High Court.
Mob: 9566217446