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How to recover money

(Querist) 08 February 2016 This query is : Resolved 
A AND B BOTH ARE FRIEND,AND RUNNING THEIR BUSINESS SEPERATELY. B BORROWED MONEY FROM A THROUGH RTGS IN HIS ACCOUNT FOR EXPENSION OF BUSINESS.NO ANY TYPE OF AGREEMENT MADE BETWEEN BOTH AND AMOUNT GIVEN FOR A VERY SHORT PERIOD WITHOUT INTEREST.BUT IT WAS MUTUALLY DECIDED THAT BORROWED AMOUNT WILL NOT BE REPAY IN INSTALMENT.40% OF THE LOAN AMOUNT RETURNED BY B BY HIS OWN CHEQUE AND FOR REST 60% B GAVE CHEQUE OF HIS ELDER BROTHER WHICH WAS NOT IN PICTURE.ALL CHEQUES FOR 60% AMOUNT GET BOUNCED. B REFUSED TO PAY MONEY TO A.HOW A RECOVER HIS MONEY.
Dr J C Vashista (Expert) 08 February 2016
Issue legal notice for recovery of money, although your case is very weak; i.e., lacking evidence to prove the legally enforcable liability.
Sudhir Kumar, Advocate (Expert) 08 February 2016
Money given to friends and relatives is always a charity in the garb of loan which is given in expectation of refund but always taken with intention of non-refund.


Such loan is taken by a person:-


(i) Who lacks business sence and cannot raise funds out of his own business and suddenly wants to be rich.

(ii) who cannot raise bank loan because :-

Either
he himself is not creditworthy

Or
the purpose for which he seeks loan is illegal

or
the purpose for which he seeks loan is not at all commercially viable.

(iii) Who knows he can afford not to refund.
(iv) Who intends not to refund
(v) Who has made fortification against action of refund.


So he has to find someone who can part with his money.

Business started by such money (easy money belonging to other) invariably fails.


Such loans are given by the persons :-

(i) Who has surplus money.
(ii) Who displays and boasts of such surplus money.
(iii) Who stupidly believe that there will be a refund.
(iv) Fails to realise as to why he alone (not bank) is being contacted for loan.
(v) Who has extreme trust on the debor
(vi) who are either stupid or extremely greedy of the unusual (or illegal) rate of interest.

Such loans are always given

(i) Without documentation.
(ii) Without witness
(iii) Without guarantor.



Sudhir Kumar, Advocate (Expert) 08 February 2016
Int this case it is brother of debtor who issued cheque. He owed no money to you so you were not only "holder" and not "holder in due course" in respect of this cheque.

On the face of it cheque was in charity and actioIn this case it is brother of debtor who issued cheque. He owed no money to you so you were not only "holder" and not "holder in due course" in respect of this cheque.

On the face of it cheque was in charity and action u/s 138 NI Act may not succeed.

For being treated as “holder in due course “ of this cheque, you have to introduce all facts as to why a third party (brother of debtor ) gave you cheque. He gave you this cheque only out of natural love and affection towards his brother so that you do not take any action against you. He gave you the cheque without keeping sufficient balance so in all likelihood he knew that the cheque will not be honoured and in all likelihood (not stated by you clearly) you were not informed about the bank credit at the time of keeping quite with the cheque.

There can be more serve case of cheating that he issued you cheque only to prevent you from taking action against his brother and he had no intention of giving money to you and he did not put sufficient money in the bank.

You can also file civil suit against both.

All persons who lend money so spudily (or greedily) are not so lucky to haved such evidence.
n u/s 138 NI Act may not succeed.

Foir There can be more serve case of cheating that he issued you cheque only to prevent you from taking action against his brother and he had no intention of giving money to you and he did not put sufficient money in the bank
Sudhir Kumar, Advocate (Expert) 08 February 2016
Int this case it is brother of debtor who issued cheque. He owed no money to you so you were not only "holder" and not "holder in due course" in respect of this cheque.

On the face of it cheque was in charity and actioIn this case it is brother of debtor who issued cheque. He owed no money to you so you were not only "holder" and not "holder in due course" in respect of this cheque.

On the face of it cheque was in charity and action u/s 138 NI Act may not succeed.

For being treated as “holder in due course “ of this cheque, you have to introduce all facts as to why a third party (brother of debtor ) gave you cheque. He gave you this cheque only out of natural love and affection towards his brother so that you do not take any action against you. He gave you the cheque without keeping sufficient balance so in all likelihood he knew that the cheque will not be honoured and in all likelihood (not stated by you clearly) you were not informed about the bank credit at the time of keeping quite with the cheque.

There can be more serve case of cheating that he issued you cheque only to prevent you from taking action against his brother and he had no intention of giving money to you and he did not put sufficient money in the bank.

You can also file civil suit against both.

All persons who lend money so spudily (or greedily) are not so lucky to haved such evidence.
n u/s 138 NI Act may not succeed.

Foir There can be more serve case of cheating that he issued you cheque only to prevent you from taking action against his brother and he had no intention of giving money to you and he did not put sufficient money in the bank
Guest (Expert) 08 February 2016
ABCD has no relevance, if it in not your real problem. If you are an "Advocate - Taxation & civil matters" you could have solved your own problem by virtue of your own experience. But your profile creates some doubt about your status. Along with your user ID a suffix reveals as if you are a proprietor of some firm, while in "about me" slot, you have shown yourself as an Advocate - Taxation & civil matters.

So, can you clarify, what is the truth about your own status, a proprietor, an advocate or a law student?
Rajendra K Goyal (Expert) 08 February 2016
File Recovery case after sending legal notice.
R.K Nanda (Expert) 08 February 2016
agree with experts.
Dr J C Vashista (Expert) 09 February 2016
Nothing more to add.
T. Kalaiselvan, Advocate Online (Expert) 14 February 2016
You may answer expert Mr. Dhingra's query to get proper opinion to your problem, if at all there is one.


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