Akshay Mhadgut 07 August 2022

Stuck in money fraud from my friend

I am stuck in money fraud from my friend in two separate instances and I really need help on this

Instance 1:

He already had one restaurant which was doing average business and he asked me to invest in it but only for online business part. I have invested 1 lack rupees in his business and we have made business agreement about this as well and got is notarized in court. We had decided to open 4 online restaurants with 4 different names (which is mentioned in agreement), but he only opened one restaurant and closed that too within 2 months. He keeps sayin to me that he will reopen it soon, Its been about a year now and he has not reopened the restaurant yet. Below are some points where he went against agreement:

1) It is mentioned on agreement that 4 online restaurants will be opened but he opened only 1.

2) It is mentioned in the agreement that we will open join account for this business and I gave him 1 lack rupees assuming he will open the account but he didn't

3) He has used all my money in somethin else and It is clearly mentioned in agreement that you can only use the money for this business related expenses and not any other.

I have these three points against him. Are these points sufficient take action against him and recover my money?

Instance 2:

I have lent him (this is same person as above) another 1 lack rupees to buy a phone. In order to do that I took loan of 1 lack rupees from early salary app and gave it to him and he promised to give me EMIs on 4th of each month. He was giving me the money in initial months but now he has defaulted 3 EMIs . Below are some points I have against him

1) I have a proof that he has sent me the exact amount of money in initial months which are same as loan EMI, so I can say that whichever amount is getting deducted from my back account , same amount he has been sending me as EMI for loan. This might be considered as proof that he has taken loan from me. I can produce bank statement for this.

2) I have chat message from him that clearly states that he had some rough time and due to this he could not pay some EMIs on time and going forward it will not happen. Can this message be used against him to prove that despite of assurity he is still defaulting EMIs . I am ready to produce my phone in court to show this message.

Can these two points be used to recover my loan money.

I know , I have made very bad and stupid decision by trusting this person but I really need this money back.

Can someone help me telling me if I have enough proofs to go ahead in both t instances and if so what is the procedure.

Thank a lot in advance.

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2 Replies

Dr J C Vashista (Advocate) 08 August 2022

Too long a story, be brief and specific for consideration and obligation of experts.

Sanskriti Tiwari 08 December 2023

For the first case regarding the restaurant investment, his failure to fulfill the terms outlined in the notarized agreement could be considered a breach of contract. As per Indian Contract Act, 1872, Section 73, you can seek compensation for losses caused by breach of contract. Furthermore, his deviation from the agreement terms, misuse of funds, and failure to open the joint account are strong grounds for legal action.

Regarding the second instance, your bank statements and his admission of struggling to pay EMIs can serve as evidence. The Indian Evidence Act, 1872, Section 17 recognizes oral and written admissions as evidence. You might consider issuing a legal notice to him demanding repayment and, if necessary, file a case in the appropriate civil court, presenting all evidence including the agreements, messages, and bank statements.

However, it's crucial to consult with a lawyer specializing in contract law and civil matters to assess the specifics of your case and the most appropriate legal steps to recover your money. They can guide you through the formal legal process, which might involve filing a lawsuit in the appropriate court, based on the evidence you've gathered.