Profit share

jains (Querist) 23 October 2018 This query is : Resolved
I granted a loan to a my friend on assurance that he will pay profit share. He is conducting a partnership firm with his wife and issued post dated cheques from the current account maintained in the firms name to clear his debts towards me. Is it legal to grand loan to firm by private party like me.?. Is there any bar in demanding profit share as offered by the managing partner?.

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Dr J C Vashista (Expert) 24 October 2018
When you have already given loan as stated by you, is there any point to find legality of the issue, even if there is some truth in your story ?

jains (Querist) 24 October 2018
I am intending to take steps to recover principle and profit share due to me by the firm and its managing partners. That is why I am inquiring that whether there is any bar in recovering debt due to me from the firm, after all there is no registered agreement between me and the firm for the transactions?.

Isaac Gabriel (Expert) 24 October 2018
Don't fight a losing battle.

jains (Querist) 25 October 2018
Why its a loosing battle. I have evidence of transaction as bank records.

Guest (Expert) 25 October 2018
A good academic question, but without ny head or tail!!

Guest (Expert) 25 October 2018
Must try your luck to have the taste of your imaginary pudding, if the bank record of your transaction contains the promise of the debtor.

jains (Querist) 29 October 2018
The debtor issued cheques to clear his debts. whats then

Guest (Expert) 29 October 2018
Your demand is illegal.
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jains (Querist) 07 November 2018
WHETHER 138ni ACT CASE WILL STAND UNDER THESE GROUNDS AS THE DEBTOR ISSUED CHEQUES FOR THE ABOVE TRANSACTION?

Sudhir Kumar, Advocate (Expert) 14 November 2018
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:- Who lacks business sense and cannot raise funds out of his own business and suddenly wants to be rich. 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. Who knows he can afford not to refund. Who trusts his thick skin Who intends not to refund Who has made fortification against action of refund. So he has to find someone who can part with his money. SO he finds a lender near him (friend or relative) Such loans are given by the persons :- Who has surplus money. Who displays and boasts of such surplus money. Who stupidly believe that there will be a refund. Fails to realise as to why he alone (not bank) is being contacted for loan. Who has extreme trust on the debtor who are either stupid or extremely greedy of the unusual (or illegal) rate of interest. Such loans are always given Without documentation. Without witness Without guarantor. During cordial relations Soon after giving such loan :- Relations are no more remain cordial Business started by such money (easy money belonging to other) invariably fails. Such loans always sink and not refunded. Person seeking such refund suffers at legal process. Person seeking such refund legally or by persualtion is socially criticised.

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