Criminal Trident Pack: IPC, CrPC and IEA by Sr. Adv. G.S Shukla and Adv. Raghav Arora
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nikita jain   24 June 2022

money recovery case

hello everyone,
I hope my problem is being heard and helped by your valuable responses.

I would like to illustrate my query like illustration.

Back in 2014 Person A lends certain amount of money to B saying and promising to return in 4 to 5 years.
After 5 years A asked B about money B denied to give back the money and making excuses.
A has no checks as security or anything else to recover. money was given completey on trust basis and it was mutual agreement in oral that he will repay in this time
Now what legal remedies i have to recover? which section of IPC or else would attract to institute a suit/case.

the matter was tried to settle down outside court but couldn't.
so waiting for your valuable response.

Thankyou !


Learning

 3 Replies

Sidhhi   25 June 2022

You don't have document to prove your good deed of being a friend in need. Forget it and think Neki kar dariya mein daal.

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

Hi,

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!


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