Upgrad
LCI Learning

Share on Facebook

Share on Twitter

Share on LinkedIn

Share on Email

Share More

N Omprakash   19 March 2021

Non payment of borrowed money.

Sir/s,
In a case, good known friend borrowed money and given promise on stamp paper, own hand writing about three years ago.
He is not repaying on some pretext or other.
Please advise whether, can go for legal action against that person, how to.


Learning

 4 Replies

Mrityunjay Joshi   19 March 2021

Hello Mr. N Omprakash sir

You can file a money suit against him.

Firstly send a legal notice to him through an advocate and if he will not be ready to pay the amount then lodge an FIR or file a case against him.   

Firstly: if he doesn't do the same job as you do, and he isn't thinking about you the same as you do about him, there is no friend. Only some friends or relationships or relatives should not cause financial loss.

Secondly: I give you a good advice, first of all, that you talk to him verbally about it and ask him to return your money or not. I believe he is going to manipulate everything and give you an erroneous statement on the same. I am therefore honestly suggesting that you ask him the last date to return your money to you.

If your friend fails to comply with the statuary situation, you need to file a FIR against him that will lead to:

1. Charge him for criminal punishment if you can prove he was lying to you and everything is deliberate.

2. Charge the non-repayment interest 15 percent p.a. from the day that he promised to return to you. 
3. Charge extra compensation or extra legal costs only when in any courts of India you have brought a case against him.

Make sure that As this is a lawsuit that takes you a lot of time and you have to spend your money on it too, you are therefore strongly advised to ask your money verbally back to him. Otherwise, because of relationships or friendships, it is just a case webbed, and you don't have to prove that you have gave him money and that before you transfer it, there cannot be a legal agreement. I say it's hard to prove your case, but then go for it if you choose that line. 
It may not be possible to resolve your case because there is no proof.

You can also take the money by having some legal enforceable documents :-

1. Using a promissory note to lend money
The loan given to a family member or a friend is usually unsecured as it is defined by loosely bound terms and conditions. A “promissory note” is an instrument in writing (not being a bank note or a currency note) containing an unconditional undertaking, signed by the maker, to pay a certain sum of money only to a certain person, or to the bearer of the instrument. 

2. Using a loan Agreement to lend money
Loan agreement consists of multiple terms and conditions such as the purpose of loan, loan amount, loan interest rate, loan term, loan security and any such special terms and conditions as mentioned by the party to an agreement.

3. Filing a summary suit
A summary suit consists of two important declarations by the person filing it (here the person who gave the loan), namely

A specific vow that the suit is filed under the order 37 of CPC, (Summary Suit)
No relief which is beyond the ambit of the order is asked as a final relief.

 

G.L.N. Prasad (Retired employee.)     20 March 2021

.I am afraid that you have already delayed the matter.  Immediately contact a local advocate and entrust him the case within the limitation period with all such documents.

Rama chary Rachakonda (Secunderabad/Telangana state Highcourt practice watsapp no.9989324294 )     20 March 2021

All Promissory Notes are valid only for a period of 3 years starting from the date of execution, after which they will be invalid. There is no maximum limit in terms of the amount which can be lent or borrowed. The issuer / lender of the funds is normally the one who will hold the Promissory Note.

Dr J C Vashista (Advocate)     21 March 2021

The loan is 3 years old, is barred by limitation.

For a good friend it is better to forget..

A handwritten note on stamp paper has no evidentiary value.


Leave a reply

Your are not logged in . Please login to post replies

Click here to Login / Register