payment not received

Police duty is to maintain law and order, however, it has no powers to recover your money.

Proceed with legal remedies, file a case for collection of dues. 

Non payment of outstanding and due amount does not constitute offence of cheating so police can't take any step against him.File civil suit for recovery of dues and get attached his property.

You should lend the money only after signing the promissory note or the loan agreement which has the terms and conditions stated clearly. In case of default in the repayment of money, you can approach the court and file a civil suit for recovery of money or a criminal suit for fraud/ breach of an agreement.

You can do three things to get your money back - file a civil suit, a criminal suit or settle outside of court.

You can file a civil suit for recovering the money that someone owes through a promissory note or loan agreement. You can do so under Order 37 of CPC which allows you to file a summary suit. You can file this suit in any high court, City Civil Court, Magistrate Court, Small Causes Court. This suite consists of an important declaration stating the specific relief the lender pleas and the relief should not be beyond the ambit of the order as final relief. The first step is drafting the summary suit and then it should be summoned to the person who borrowed money. The court requires a certain document to produce before them, along with the plain copy and summons. Once the suit is filed, the defendant will be asked to appear before the court within 10 days. If the person failed to appear, you have to show the summons you sent before, and then the court orders you to send another summon. If the person has any defense he/she can claim before the court, if not the court will assume your allegation as true and reward the judgment accordingly.

You can also file a suit under the Negotiable Instrument Act. This can be filed only for people who did not return the money which was borrowed by you via cheques, bills of exchange, etc. If the person fails, you can further file a criminal suit against him/her. If the court finds him/her guilty, the person will be imprisoned for two years and also has to pay double the amount of the cheque issued.

You have to prove that the person had committed a criminal breach of trust and had not returned back the money. So you can file a suit under Sec 420 of IPC as the person whom you had to lent the money has cheated you and also under Sec 406 of IPC for Criminal Breach and if the court finds guilty, the person will be imprisoned and has to repay the money he borrowed. Generally, the court takes a long time for the cases filed under this section.

You may opt for an out-of-court settlement for recovering the money dues through arbitration, conciliation, or Lok Adalat. It is one of the economical and fastest ways for recovering. For an out-of-court settlement, both parties should be willing and have to appear for the hearing. The arbitrators generally hear from both the parties and the award will be given. Once the award pronounces they cannot appeal unless the award is invalid or the person cannot repay within the specified time.

Regards,

Anaita Vas