Recovery of interest on money lended.

Bhagyashree (Querist) 07 May 2017 This query is : Resolved
Dear sir,
I had taken loan from my family friend ₹75000 at 5% per month interest rate for 6 months. But due to lack of money I was unable to pay back.. after 2 years I returned the principal amount. But now he is mentally torturing me for the rest of interest amount.
1. He is not a registered lender
2 . We are not entered into any kind of contract or agreement.
3. I have given him a signed cheque two years back.
Can he take any legal action against me?
If yes
Can I defend myself..?

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Sudhir Kumar, Advocate (Expert) 07 May 2017
Such loans are always taken

(i) by a person who is not creditworthy enough to raise public/bank loan.

(ii) for a project which is either illegal or unproductive which cannot yield loan.

(iii) beyond paying capacity.

such loans are given

(i) by unscplous greedy persons.
(ii) by persons who are sure to recover by muscle power
(iii) generally without agreement because no legal recourse is to be taken.

Sudhir Kumar, Advocate (Expert) 07 May 2017
"1. He is not a registered lender"

does not matter. he knows how to recover from you without going to court.

Sudhir Kumar, Advocate (Expert) 07 May 2017
"2 . We are not entered into any kind of contract or agreement.
3. I have given him a signed cheque two years back."

dont you think that both these sentences are contradictory. By giving cheque you promised to give Rs X on date Y.

Sudhir Kumar, Advocate (Expert) 07 May 2017
"Can he take any legal action against me?"

If you are not having any leal liability towards him you may be acquitted of S/138 NI Act. However Bail/Jail is not a happy position during trial. This quecque is sufficient for you to be called to court with ZAmanti and if you go without bail application and Zamanti you are not coming home.

Better take chqeue back.

Sudhir Kumar, Advocate (Expert) 07 May 2017
"Can I defend myself..?"

You can defend that legally you owe nothing to him by way of this cheque. But this trail will cost you a lot of humiliation and money.

You have not stated your profession.

So take cheque back from him.

Kumar Doab (Expert) 07 May 2017
You had borrowed and you had agreed to pay interest by your sweet will.

You agreed to repay within 6 months and repaid in two years.

So the delay and deficiency is from your side.

Isn't it!

Kumar Doab (Expert) 07 May 2017
Try and Settle amicably.

Collect your cheque, NOC/NDC and keep safely for future.

Dr J C Vashista (Expert) 08 May 2017
The blank signed cheque, despite the fact it was given 2-3 years back, is more than sufficient for money lender to twist your arm and recover dues as calculated/imagined.

It would be better to settle the case amicably if you fear to contest the case(s) to be filed by money lender.