Sir,
My brother-in-law has taken money from his friends and relatives for earning income from lending at 4% rate of interest. He has taken 1% & has given 3% to the lenders. Finally 1 day all of the people to whom he had given the money are no longer paying him any interest, but he did not want to give this impression to his friends hence continued paying them the interests from his own salary. However that could not sustain for long, so finally he concluded the situation to them and mentioend the situation, but none were ready to agree. Due to their threatens and demands he sold off his house and payed few of the lenders back their money, however there are more people who could not be paid because they are asking for interest + principal, but he is ready to pay them the "principal" amount only.
Now they have gone to Legal and sent Court Notice and have filed cases against him because they had Cheques for security. Now what options does he have because none of them are agreeing to the settlement for principal only.
1) In truth he has paid all the lenders lot more money as interest than the principal amount also, however lot of this is in the form of cash.
2) He has few cheques from the people to whom he has lent money and he also has put case against them, but they are all missing.
So what options does he have, given he has already sold his house.
> Can he go to the court and proceed legally, will there be any benefit for him given that he has paid interest amount more than the principal.
> Also the lenders to whom he has given money have cheated him. Will there be any benefit for him if this case is presented in the court ?
> Can he apply for insolvency, though he has job
> Can he agree the repay the amount to the lenders in monthly installments after deducting the livelihood expenses ?
Would be great if a good lawyer can provide their contact, so that this can be fought in the court of law in bangalore.
Thanks for your help.
