Loan agreement- who keeps the original?

This query is : Resolved 

04 February 2013

Hello Experts,

A loan agreement needs to be registered between a private limited company (borrower) and one of its shareholders (lender). Both the borrower and lender want to keep the original agreement since they want something which is legally enforceable through court.

What should be done? Can a notarized copy be enforced in the court? I think the lender normally keeps the original, whereas the borrower gets a copy. What could be done so both the parties have a legally enforceable document (valid in court)?

Thank You in advance

Dhingra, (Expert)
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04 February 2013

Original would remain with the lender only. The borrower can get a certified copy attested by the notary.

Advocate Ramesh (Expert)
04 February 2013

Even in the original agreement itself you should mention like original is with lender and the attested is with the borrower like that, then it can valid in court, if the borrower produced attested in court

Hazarae M Raj (Expert)
05 February 2013

can't we execute the agreement in duplicate with a mention in the body of the agreement that the agreement has been executed in duplicate and a copy is retained by both the parties? - (inviting comments from experts regarding the same..)

Dhingra, (Expert)
Click to Talk
05 February 2013

No, the agreement is in single document, while the other can be a true copy.

ajay sethi (Expert)
Click to Talk
05 February 2013

agree with dhingraji

raj kumar makkad (Expert)
08 February 2013

This signally drafted document shall remain with lender with specific mention therein.

Sudhir Kumar (Expert)
09 February 2013

It is the lender who will be aggrieved in case of default so original will be with him only

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