I am from TN and I gave rupees 3,00,000 to one guy for a period of 3 yrs. We also wrote an agreement with 20 rupees stamp paper for 3 yrs and in the agreement it is wrote as 3% interest for each month will be given on 1st date of each month and will settle the full money to me within the end of 3yrs. But the problem is he did not pay me any interest for almost 10 moths now.When I asked him about it he is telling this is not a valid agreement as the interest rate allowed by Indian government is 2% for a month and if I ask more than that it is invalid. Now he is not even paying 1 rupee as interest and says he will not also pay 3,00,000 as it is not valid. More over he signed in only second paper where the sign of borrower is needed. I contacted a lawyer he said his sign is also needed in the first page as it is the stamp paper. Now can I take this case to civil court and can I get my money back atleast. First of all is it a valid agreement as I didnt get any of his documents or material for the 3,00,000 I gave him except that agreement. Please any lawyers clear my doubt
True. U were greedy to get 3% per month means u desired 36% on money lent while TN has interest Act too.
your is like Shylock's idea
You can file to recover your 3 lacs with normal permissible interest , pleading you did nor know what is right interest i could get, it is upto court to grant you what interest you can get on your principal moneys lent as you did lend your moneys but when he signed as borrower he did not tell you what interest is permissible as he had intention to get your money to meet his ends so he kept quiet and signed the stamp paper which if you registered at sub registrar office that office would have corrected your idea of interest but appears you wanted to save registration charges'
today people are penny wise but pound foolish. Had you consulted a lawyer by paying him fee after all he studies law and advises do u think he does not deserve fees!