sharmat Ali N R 12 September 2021

Loan recovery

I have given loan to one of my friend for his needs and took 3 original cheque leaf by making an agreement as security. stating that if he didn't pay by the said date i can go for legal.

The date was till 30.07.2021 but till now he has not paid me back.

loan amount : Rs.2,00,000

How should i proceed for collecting my amount legally and how much time shall it take?

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Quick Summary

If a friend has failed to repay a Rs. 2 Lakh loan by the agreed date, despite providing signed cheques as security, you have legal avenues to pursue. While the cheques may no longer be valid under the NI Act after 90 days, especially when given as security, you can still explore presenting them for payment or filing a recovery suit. It is strongly advised to consult a practicing advocate immediately to understand the best course of action and the potential timeline for recovering your money.

5 Replies

ADVOCATE NITIN KAPOOR (Advocate) 12 September 2021

You can proceed with two remedies: 1) Present the cheques for payment (Do consult a lawyer for its effective implementation) 2) Recovery Suit can be filed. Regards, Nitin Kapoor 8800692624

Kishor Mehta (CEO) 13 September 2021

Consult a practicing advocate immediately in your own interest. The cheques are useless after 90 days of the issue date anyway.

P. Venu (Advocate) 13 September 2021

Provisions of NI Act are not applicable to cheques/cheque leafs given as security.

Kishor Mehta (CEO) 14 September 2021

With due respect, provisions of NI Act protects from prosecution, it does not extend the validity of the cheque.

Dr J C Vashista (Advocate) 14 September 2021

I agree with the advise of experts, present one of the cheques and proceed as required. Consult a local prudent lawyer for further action/ alternative / proceeding

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