Hi,
I've lend Rs.1,00,000.00 to an aquaintance who was introduced to me by a colleague for investment in the stock market.
He promised to return me Rs.1,60,000.00 at the end of one year. I have an agreement between me and the person who borrowed from me on a non-judicial Rs.20 stamp paper over which I've affixed Rs.80 worth of special adhesive stamp. The borrower and mine signature are both over and under the first party(lender) place of signature (which appeared to be a honest mistake by him at that time) and my colleague signed as witness after striking through the place for signature of second party(borrower) in the agreement. I asked the borrower to place a signature in blank space on the side of agreement.
I've a post-dated cheque which the borrower issued to me dated 17/07/2013 (from his joint account with his father) but when I deposited it in the bank on 12/10/2013 it was returned to me with remarks "payment stopped by drawer". But there is no stamp from the bank on the return memo.
My colleague who witnessed the agreement is an accused and few non-bailable warrants have been issued against him under dowry & "attempt to murder" cases.
I paid the borrower using cheque. But the cheque was issued and encashed 3 days prior to the date of execution of the agreement.
What should be my course of action now?
Is the agreement admissible in court of law?
Will an statement from the witness(my colleague) be credible as he is a fugitive?
I am writing below the format of agreement:
This Agreement is made at ____________ on this ___ day of ______________ , between :- Mr. ________ resident of _______________________________________ (hereinafter called the Party of First PART )
AND
_____________ S/o _______________ R/______________________________________________ hereinafter called the party of the second part)
WHEREAS the second party is in need of money and is having friendly term with the party of the first part and requires a sum of Rs. ____________/- (Rupees ____________________________________ only)
AND WHEREAS, the first party has agreed to give the said loan amount to the party of the second part and in lieu of this payment this receipt cum agreement is being executed between the parties.
AND WHEREAS, in lieu of repayment of the loan amount the second party has issued a post dated Cheque bearing its No. _______ dated __________ for Rs. ________/- drawn on _________ Bank, _______ from his saving Account No. ____________________
(borrower signed here)
1. FIRST PARTY 2. SECOND PARTY
(I signed here) (my colleague signed hereafter writing w.d.)
