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Rahul_raj1975 (software Engineer)     18 August 2012

Loan recovery through promissory note

Hi,

My father has given loan to his friends in the past 2-3 years on interest. He has taken a promissory note against the same having the signature of the person on a Rs 1/- revenue stamp. The witnesses are not present on the note presently. All the transactions such as interest payement, loan payment was done in cash.

He died 4-5 months  back in April 2012 and now it is becoming difficult to recover the loan. The people are not denying to pay back but are delaying the payment by giving vague reasons.

1) Is there any way to recover the amount through the promissory note. For some people he has taken a blank cheque as well with NO date on it.

2) Is there any specific period before which I need to take legal action against the borrowers. what are the steps involved in filing the case i.e. how should i go about it,How much amount and effort would be required to take legal action.

3) As I am currently working in Delhi and the loan was given in A.P.; can I file a legal case in delhi to avoid travelling. My mother still stays in A.P. alone but she has health issues and it would be difficult for her to travel to the court.

Thanks in Advance!

Rahul



Learning

 8 Replies

Adv Rohit Dalmia 9324538481 (Lawyer)     18 August 2012

Dear Rahul,

 

As you said that the entire transaction was done in cash and a promissory note was executed. You may deposit the cheque against the recovery of the said loan. but there is a doubt that the borrowers of loan might have instructed the bank for stop payment.

 

You should deposit the cheque if you doubt about their intention of repaying the loan.

 

for further legal assiatnce you may contact local lawyer or you may call on 9324538481.

 

Regards,

Advocate Rohit Dalmia

Mumbai 

RAKESH PIPRODIA (ADVOCATE)     19 August 2012

The cause of action took place at AP, Hence the proper jurisdiction shall be AP. Other way out is take out Leave Patent under Clause XII from the hIGH cOURT. Whereas, cheques were been issued in favour of whom? YOUR FATHER OR IS IT BLANK NOT MENTIONED BY YOU. Since you said  the loan was been given in all cash transaction, you need to prove the cash was been given and the accounting entry as it may be demandede in the court under section 91 of the CRPC. Whereas, even you have not mentioned do yur father hold any money lending licence?. You need to work on all these issues and then go in for legal battle.

Sudhir Kumar, Advocate (Advocate)     19 August 2012

If you have blank signed cheque fill details and deposit in bank as advised. This cheque itself will confirm the liability.

VINOD VERMA (C E O)     20 August 2012

1. To give loan, a  person must have a money lender's Licence.

2. The payment of loan of Rs.20000/- must have been made by Crossed cheque as per Income Tax Act 1961.. Sec 269SS.

3. Cheuqe itself can not be a confirmation of loan against promissary note, if it is more than 3 years old. The civil liability also ceases to exit after 3 years.

4. It is better to negotiate mutually and get the settlement of the amount, if possible, then going to the Court of Lw, as it may take several years. Even with apendency of over 3 million casesu/s 138 of N.I.Act., it is not possible to have the case  completed in less than 4 years.

Sudhir Kumar, Advocate (Advocate)     21 August 2012

If there is a pronopte followed by cheque the liabioity of cheque is establishe3d.

kvss.prabhakar rao (Advocate )     22 August 2012

Dear Rahul Raj  your case you can recovery the same by filng civil suit for recovery of amount on the foot of promissory notes. But i can give one suggetion all the matter should not be in open debate. Thouhg advocate have answers about quearry they can not give suggestion in open.it is safe to advocates as well.  kinldy contact me  

my e-mail   advkvssprabhakar@gmail.com  or K.V.S.S Prabhakar Rao, Advocate, Dr NO 44-1-3, Jampeta, Rajahmundry

Mobile 09440152181

kvss.prabhakar rao (Advocate )     22 August 2012

Dear Rahul Raj  your case you can recovery the same by filng civil suit for recovery of amount on the foot of promissory notes. But i can give one suggetion all the matter should not be in open debate. Thouhg advocate have answers about quearry they can not give suggestion in open.it is safe to advocates as well.  kinldy contact me  

my e-mail   advkvssprabhakar@gmail.com  or K.V.S.S Prabhakar Rao, Advocate, Dr NO 44-1-3, Jampeta, Rajahmundry

Mobile 09440152181

Harsh (None)     02 February 2019

If Someone has given Loan through Bank and has Taken Interest and Principal amount throgh Bank. The loan is Given against Cheque and a Promisory Note (Hundi) but the Lender is NOT having Licence  even though it will be illegal ?

 

 


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