Hello Sir, around 18 months back, one of my relative was in dire need and approached me for help. Seeing his condition, I borrowed money from my friends and lent the same to him where in he agreed to pay the same interest that I was supposed to pay to my lenders (24% pa). He stopped paying interest six months back saying that he was not able to pay and will give it out as a lump sum. He gave so many extensions saying that he is disposing off a property and he'll pay me then. And yesterday he sold off the property and got money. When I asked him to repay the principle and interest, he bluntly says I will not. He has executed promissory notes to the effect and he says you do what ever you want, no court of law is above me. He broke my trust and belief that we should help people when they are in need. I wanted to mercilessly thrash him black and blue but he was my relative. Now I want to teach him a proper lesson not to cheat anybody in future and also recover my money as its not mine and I have my friends to pay. And this I want to achieve through the Court of Law. Request your kind guidance on recovering the debt, cost and damage from him through any speedy process available in our Legal system (Order 37 of CPC and any other provisions). Please advise. Thank You.
Order XXXVII of the C.P.C. is an effective remedy for recovering money dues. If the amount is less than Rs. 20 Lakhs you can file civil case in the District Civil Court.
You can also file criminal case under Section 406, 420 of the I.P.C. with the Local Police Station. You can prosecute both Civil & Criminal cases simultaneously as per the SC Judgment in Iridium India Telecom Ltd. v. Motorola Inc.(Judgment dated:- 20th October 2010).
It is posible that when you approach Police they might say that it is a Civil Case and Police can't do anything. If such a thing happens the file a Private Compliant with Judicial Magistrate under Section 200 of the Cr.P.C. for registration of F.I.R. by the Police and to carry out investigations in the case.
To start with first send him a legal notice through an Advocate stating him to pay the dues along with interest in a time-bound manner failing which you will sue him in the Court of Law at his cost, risk and consequences.