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VenuReddy (own)     18 March 2015

Gave money,keeping land as a collateral to my father`s frien

Hi Experts,

 

I gave money (5 lakhs) to my father`s friend on my father suggestion for some urgent need.

He took money by keeping his land as a collateral, and he paid one month interest (2%/monthly) to my fatter.

Unfortunately, he died due to heart attack. He has lot of properties in his name. After that sad demise of him, his sons are neither willing to pay my 5 lakhs nor interest to my father.

What should I do now, will it be against law giving money with 24% interest rate ? and can I approach honorable court for getting my money with interest?

Please suggest.

 

Thanks  



Learning

 3 Replies

Kappil Cchandna (Expert Bail & Criminal Defence Lawyer at Delhi Supreme Court of India)     18 March 2015

Sir, You have all rights to recover the money ..... Send them a legal notice as they are the legal heirs and are supposed to return the money on their fathers behalf.... Regards Kapil Chandna Adv 9899011450

Anand Bali Adv. (Advocate Solicitor & Consultant)     19 March 2015

Yes definitely there is a law to forbade to charge exorbitant rate of interest on a friendly loan ( in commercial loans one should have a lender’s license as to adopt it as profession and business.

On the other hand you can charge a simple rate of interest as per the prevailing banking rates of interest in India plus can claim for the return of your principle amount by the legal heirs of the deceased person as the rights and liabilities both go along after the demise of the person to his legal heirs.

First try to establish that in actual a loan was given to your father’s friend which has been only partially re-payed by him during his life time and now it should be recovered out of his property which has been inherited by his legal heirs.

For further legal assistance on nominal charges, you can contact me on below mentioned address and Phone number, Please call after Court hrs to get a suitable appointment date and timing.

Advise, always take assistance from an experienced and well educated Advocate of the field. You can see my credentials on this very site for my appraisal.

for Anand Bali & Associates

Anand Bali, Adv.
(B.Com., M.A., LL.B., M.B.A.)
Supreme Court Of India,
High Courts of Delhi, Chandigarh, UP & UK.
For Civil, Criminal, Property, Recovery, Consumer,
Service, Divorce & Family Dispute Matters

T. Kalaiselvan, Advocate (Advocate)     20 March 2015

The rate of interest quoted by you is not exorbitant hence need not worry on that aspect. What is the source of income?, what is the evidence for loan transaction?, has the collateral security properly secured or just deposit of document in your custody?, take the help of a local good advocate and proceed.


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