sanjeev (12) 25 September 2014

Important please see this

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

There is no check involved here. I withdrawn 3,00,000 from my bank A/C and the next day I gave him and signed agreement. There were 2 witnesses who also signed in the agreement. More over this guy [the person who got money from me]signed for a surity in a finance company for one of the witness. That witness is with me and he will tell the truth in court. Will this do

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Nali Seshu Kumar (SOCIAL WORKER) 25 September 2014

sanjay dont worriedabout your principa and interest.there is no restriction to claim interest.i dont understand the actual rate of interest if your version is correct 3% interest equql to 25 paise.ithink 3% in your calaculation equal to 3 rupees per annum to every hundered.coming to the point to your query you have every right to file a suit on the file of your local jurisidiction.immidiately you approach a qualified advocate to file a suit for recovery of your principa and interst also costs incurred to the litigation .there is no prohibition to reduce the particulars ofloan in to non judicial stamp paper.

Nali Seshu Kumar (SOCIAL WORKER) 25 September 2014

prakash chandra jain (proprietor.) 25 September 2014

dear sanjay.you have got enough evidence to prove your debt. for example-withdrawal of rs from bank. on next day payment to friend. if interst rate is 3% per annum,it is permissible in law. document bears signatures. execution & receipt of consideration on record. file civil case & try your luck.-prakash chandra jain advocate indore m.no.-09479848437(facebook/prakash jain)

naveenraj jain (proprietor) 25 September 2014

It seems that the interest rates agreed are 36% p.a. do u hold any money lender license. With respect to rate of interest is concerned court will award bank interest even though u write any rate with the principal amount if proved. Just prove that he had borrowed and defaulted in repayment. U run a risk of income tax problem.

Nali Seshu Kumar (SOCIAL WORKER) 26 September 2014

no neccessity to hold money lendor license to claim 36% interest it is sufficient the holder is a tax assessee.as per interest act it is not possible to grant interst two times of principal amount .as per sanjeev query it is highly imposssible to cross that level so it is free to him to proceed further.

sanjeev (12) 26 September 2014

Atleast is it possible to get my 3 lakhs even if the interest is not paid. Will the court take this agreement as valid or not. Will the court order to get give atleast 300000. Eventhough it is said as 36% p.a. but still he didnt pay any interest for almost a year. The total money he paid as interest is only 15,000 for 15 months