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rajiv22   08 April 2017

Person not returning borrowed money

Respected Lawyer,

I gave money(10 lakhs) to my cousin,  I got loan from private bank and transferred the amount to the cousin account. and 4 lakhs in cash. He promised to pay back the monthly EMI, and foreclosure the loan within 6 months. 
He properly payed the 6 months EMI and after that not paying the EMI and now refused to pay the full amount.

The EMI is deducted from my account monthly.

[b]Details about my cousin:[/b]
He is doing real estate business and having property worth 2 crores.
He is very influenced man in my home town, he is having political and police link. 
He is having money and now not willing to pay me.

The proof i am having is account statement for transfer of 10 lakhs.
And one of the common friend of us who witnessed, when my cousin asked for the money and his promise of repayment.

Kindly provide your valuable suggestion to get my money back



Learning

 7 Replies


(Guest)

Sir serve a Legal notice

Praveen Kumar (Intern Lawyer)     08 April 2017

Dear Mr. Rajiv,

You should consult with a lawyer and to serve a legal notice to the borrower. You will get the response of legal notice within 30 days and accordingly you can take the legal step against the borrower.

Tushar Jha (Advisor)     08 April 2017

First of all, if you lent money to your relative as stated by you. Then, is that transaction evidenced in writing? If you have any written acknowledgement of money lent by you, then you can file a Summary Civil Suit.
Since, you gave Rs. 4 Lakhs in Cash and if you don't have any written or documentary proof related to the transaction. In that event, you cannot file Summary Civil Suit for recover of money amounting to Rs. 4 Lacs!
For recovering this Rs. 4 Lacs in cash you need to file Ordinary/Regular Civil Suit at District Civil Court. The burden of proving the case will rest on you. Regular/Ordinary Civil Suit can take 3-4 years to be decided by the Court, subject to pendency of cases in the District Civil Court.

Summary Civil Suit is an effective and speedy remedy for recovering money. It is filed under Order XXXVII (Order 37) of the Code of Civil Procedure. You also need to pay court-fees on the amount claimed by you in the suit. Court-fees is generally 4% to 5% of the amount claimed in the Suit.
Also, remember that there is time-limit for file civil suit for recovery of money. This limitation period to file a civil suit is mostly 3 Years from the date of cause of action.
First, send a legal notice through an advocate. Advocates generally charge 10% of the principal amount claimed in the suit towards their legal fees.
If you are in Andhra Pradesh, then you can claim additional expenses incurred by you for prosecuting this case under A.P. Advocate Fee Rules Act, 2010. In case of other states, the legal expenses can be claimed according to High Court Rules. Remember, this has to be stated in the plaint or else court may exercise its discretion whether to award you legal fees or not while decreeing the suit.
Summary Civil Suits under Order 37 of C.P.C. is generally disposed off within 12-14 months, if contested by the opposite party. If the suit is not contested by Opposite Party(Respondent/Debtor) then you may get an ex-parte decree within 8-9 months.
All this is subject to pendency of cases/lawsuits within the District Court where you intend to file the lawsuit.
Make a list of movable and immovable properties owned by Debtor as this information will be required by you for carrying out execution of your Decree. In case, you are unaware of the details of the movable or immovable properties owned by Debtor/Respondent/Opposite Party, then you can file an application under Order XXI Rule 41(2) of the C.P.C. for examination of Debtor(Opposite Party). The court will order/direct the Opposite Party to file affidavit stating their details of properties. If Opposite Party(Debtor) fails to file affidavit of his assets, then he can be detained in Civil Prison for upto 3 months, subject ot payment of Subsistence Allowance by you. Subsistence Allowance paid by you for detaining Debtor/Opposite Party can be claimed by you as cost of suit in addition to the Court-fees paid.

Remember, one thing even if you win the lawsuit, the opposite party(debtor) can appeal in the High Court for setting aside the decree/order given in your favour. Round 2 of your legal Battle will be at High Court. Whoever, loses Round 2 at High Court has an option to file appeal in the Supreme Court. Round 3 of your Legal Battle at Supreme Court. Whoever, loses Round 3 at Supreme Court will have an option to file review petition invoking Article 137 of the Constitution. This will be Round 4 of your legal battle. However, there is no guarantee that Supreme Court will entertain the review Petition under Article 137 of the Constitution. This discretion rests with Supreme Court.
After Round 4 is over and you emerge victorious, only then you can proceed to execute the Decree/Order in order to recover your money.
When you have won the Round 4 of your legal battle, then you can apply to the District Court where Debtor's property is situate for conducting sale of his movable/immovable property in order to realize the fruits of your Decree.
Conclusion of Round 4 of legal battle at Supreme Court might take 8-10 Years from the date you have filed the case in District court (i.e.) the Court of 1st Instance.

 


(Guest)

Sir atlest for 4 Lakhs u have any Cheque or promote???

Sri Vijayan.A (Legal Consultant)     09 April 2017

I fully endorse the views of Sri.Tushar Jha

Summary Suit is the best option

Tushar Jha (Advisor)     09 April 2017

Also refer to this link :
https://www.lawyersclubindia.com/forum/details.asp?mod_id=138414&offset=1

The above link contains detailed analysis for recovery of money through litigation process.
Read my detailed replies in the Link.

Kumar Doab (FIN)     10 April 2017

The legalities have been explained to you.

“And one of the common friend of us who witnessed, when my cousin asked for the money and his promise of repayment.”

Involve some such persons and agree to settle for Principle (and without interest).

Resolve if possible by such approach.


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