nikita jain 24 June 2022
Sidhhi 25 June 2022
Advocate Bhartesh goyal (advocate) 25 June 2022
No civil suit for recovery or criminal case is made out on given facts.
Mahi Manchanda 25 June 2022
An oral agreement is as equally valid, as a written one. The legality, of an oral agreement, cannot be questioned, if it falls under the ambit of the requirements stated in section 10 of the Indian Contract Act, 1872.
Firstly, the lender should send a legal notice to the borrower for return of money. If the borrower is still not returning the money, a recovery suit can be filed.
The lender can file a civil suit for recovering the money he owed through promissory note or loan agreement. The suit can be instituted under Order IV of the Code of Civil Procedure 1908 (CPC) which allows the lender to file a recovery suit.
If you want to look into filing a criminal case against person B, the lender has to prove that the person had committed criminal breach of trust and had not returned the money. So, he can file a suit under Section 420 of IPC as the person whom he had to lend the money has cheated him and also under Section 406 of IPC for Criminal Breach and if the court finds guilty, the person will be imprisoned and has top repay the money he borrowed. In general, for the cases filed under this section, the court takes a long time.
I hope this answers your question.
Have a good day!