Ratnajit Desai 15 September 2020

Money borrower refusing to pay back the taken

My father lend money of around 2 lakh from his bank to kirana shop owner nearby with only verbal agreement of paying back that cash in daily installments of like 400rs. per day . Now borrower i.e. Shop Owner is refusing to pay back those installments and my father has to pay all that money to bank. The father gave money only because he knows that shop owner for a long time and had trust on shop owner. What could be done in this situation in order to get that money back from shop owner.

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Quick Summary

A father lent a significant sum of money to a local shop owner based on a verbal agreement and trust. The shop owner is now refusing to repay the daily installments, leaving the father liable to the bank for the full amount. Without documentary evidence like a promissory note, legal action to recover the funds is challenging. It's advised to consider the difficulty of pursuing the case without proof and to ensure proper documentation for future loans.

4 Replies

Adv Vinay Mathur + 8447131770 (Advocate) 15 September 2020

why it is that your father took bank loan that too on cheque and gave that amount in loan in cash

Suri.Sravan Kumar (senior) 15 September 2020

unless you have documentary evidence you cannot initiate any legal action against the Shop Owner. Take promissory note from the shop owner for the amount he has taken from your father.