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g.bharath (retired)     19 October 2016

Money given on short term loan to brother by cheque

sir my friend gave a Rupees Ten LAKHS loan to his elder brother on short term basis and brother has given a receipt cum statement duly signed by BOTH BROTHERS. BUT THIS IS  IN PLAIN PAPER AND MENTIONSTHAT THIS SHORT TERM LOAN TAKEN FOR PERSONAL USE AND WOULD BE RETURNED BY MONTH END, SO DOUBT IS WHETHER THIS DOCUMENT IS VALID IN COURT OF LAW AS IS NOT IN STAMP PAPER



Learning

 4 Replies


(Guest)
Not valid. Not valid. Not valid.
1 Like

G.L.N. Prasad (Retired employee.)     20 October 2016

Explore the possibility of making it valid by contacting an expert by affixing proper revenue stamp or fee.  (Just an attempt) as such fees can be paid with fine or late fee.

1 Like

Pradeep Kumar (Lawyer)     20 October 2016

Dear Sir,

If other party has failed to return you money, then immediately file a civil recovery suit based upon the document you have.The document is admissible in law if it has been signed by the witnesses and the admission of taking the loan is visible on that paper. It is a matter of trial wherein the document is required to be admitted. Therefore, immediately filed a civil recovery suit.

Advocate Pradeep Kumar khatana

987-176-5000

 

1 Like

Sudhir Kumar, Advocate (Advocate)     04 December 2016

Money given to friends and relatives is always a charity in the garb of loan which is given in expectation of refund but always taken with intention of non-refund.

 

Such loan is taken by a person:-

 

  1. Who lacks business sence and cannot raise funds out of his own business and suddenly wants to be rich.

 

  1. who cannot raise bank loan because :-

 

Either

he himself is not creditworthy

 

Or

 the purpose for which he seeks loan is illegal

 

or

the purpose for which he seeks loan is not at all commercially viable.

 

  1.  Who knows he can afford not to refund.
  2. Who trusts his thick skin
  3. Who intends not to refund
  4. Who has made fortification against action of refund.

 

So he has to find someone who can part with his money. SO he finds a lender near him (fiend or relative)

 

Such loans are given by the persons :-

 

  1. Who has surplus money.
  2. Who displays and boasts of such surplus money.
  3. Who stupidly believe that there will be a refund.
  4. Fails to realise as to why he alone (not bank) is being contacted for loan.
  5. Who has extreme trust on the debor
  6. who are either stupid or extremely greedy of the unusual (or illegal) rate of interest.

 

Such loans are always given

 

  1. Without documentation.
  2. Without witness
  3. Without guarantor.

 

Business started by such money  (easy money belonging to other) invariably fails.

 

Such loans always sink and not refunded.

 

 


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