Loan Taken from Co-operative society
Ramesh
(Querist) 10 September 2010
This query is : Resolved
Hi,
My father is running a co-operative society and he had given loan to a person in 1993. The loan amount was Rs 50,000/- at the rate of 19%.
Person did not repay till date and amount has reached 3,50,000/-. In first 11 years we have sent person 3 notices and after that one notice per year.
However the person is now saying that maximum loan payable can be double the amount of loan taken. Please guide what to do in this regard.
Parthasarathi Loganathan
(Expert) 10 September 2010
If the loan documents are not time-barred you can file a case in the civil court for recovery of dues.
Ramesh
(Querist) 10 September 2010
Thanks..But is there any law which states that loan amount to be paid back can not be more than double the inital amount given to the loanee
Chanchal Nag Chowdhury
(Expert) 10 September 2010
Once upon a time there was a hindu law known as Damdupat which stated that 'interest cannot exceed Principal'. It is no longer in force.
M/s. Y-not legal services
(Expert) 10 September 2010
On which surety you had issued that loan.. So you may file a money suit for recovery of that money..
M/s. Y-not legal services
(Expert) 10 September 2010
On which surety you had issued that loan.. So you may file a money suit for recovery of that money.. If they failed to repay the money mean you can attached any property. If its available mean
adv. rajeev ( rajoo )
(Expert) 10 September 2010
When it is a co-operative society you will have to file a suit before the Asst., Registrar of Co-operative societies to recover the loan amount. In Karnatka it is the procedure. Civil courts have no jurisdiction. Civil Courts have only executing courts in such cases.
s.subramanian
(Expert) 10 September 2010
You have to file arbitration proceedings before the Departmental Authoriies of the Co-Operative Department. Civil court has no jurisdiction to entertain or try any such suits.
Nextly if the co-operative society is banking society then the prohibition put forth by you wil not apply. What you have stated is the prinicple laid down by the Usurious loans Act.The provisions of the said act will not apply tonationalsied banks and co-operatrive societies. You need not worry about it. You are entiled to claim the same amount even if it double the prinicpal amount.
Parthasarathi Loganathan
(Expert) 11 September 2010
Yes the transactions are between mutually consented parties who are not carrying out banking business
R.Ramachandran
(Expert) 11 September 2010
According to Mr. Ramesh, the loan was given in the year 1993. The borrower had not paid any amount so far.
Money cannot be recovered after the limitation period of 3 years. Merely by sending annual notice will not in any way extend the period of limitation, unless the borrower has acknowledged the debt.
The real fact situation is not coming out. I find that most of the querist put questions in an abstract manner. Based on such half-information, the experts will be damned if they give any comments (their legal view may completely diffe based on the real facts) and will be damned if they do not reply (the querist will think that experts are not able to answer the simple question!).
Therefore, we must request all the querists not to withhold information - they may withhold the name, place etc., - but to come with relevant facts, to enable the experts to give their feedback.
Rajeev kulshreshtha
(Expert) 11 September 2010
Yes Mr. Ramchandram is absolutely right.please give each and every fact to get effective reply.
Vijyant Nigam (09807349001)
(Expert) 12 September 2010
i also agree with the views of mr. ramchandran and mr. rajeev.
like in the present matter the father running co-operative society but it is not made clear that who had given the loan, the society or the father in his individual capacity...?
