Personal loan from friend to my private limited company

jatin arora (Querist) 25 December 2012 This query is : Resolved
dear Sir,

My friend had given me Rs. 20,00,000/- loan in 2 installements for investing in my business, which is a private limited company and my wife and myself are directors.

He had given by cheques and there was no agreement or writing.

The loan was taken in April and may 2010.

We have been paying him by cheque in small installements of rs. 32,500/- per month and then from january 2012 by cheque and also daily cash collection he started taking from us . The cash collection was of our business, for which he has signed the register.

Now he has sent us a legal notice claiming Rs. 20,000,00/- and says the money was given for other purpose.

He has infact taken 28 lakhs extra by way of cash collection.

Can we prove in court, or what shall we do?

He used to sign the cash register while taking cash from the office and sometimes we used to send him mail

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Guest (Expert) 26 December 2012
Did you take cash receipt for every ampunt of cash collection he made from you?

ajay sethi (Expert) 26 December 2012
answer queries raised by DHnigraji . any proof of cash payments made by you ?

R.K Nanda (Expert) 26 December 2012
state full facts.

jatin arora (Querist) 27 December 2012
He used to sign the Register evertime cas was given to him , and also my cashier used to send him emails

ajay sethi (Expert) 27 December 2012
well if casjier has sent him emails regarding payments sent it is evidence in your favour . si,ilarly if he ahs signed regsiter which mwentions cash payment made it strengthens your case