LCI Learning

Share on Facebook

Share on Twitter

Share on LinkedIn

Share on Email

Share More

sai kiran   20 April 2024

Subject: inquiry regarding filing money recovery suit based on recent transactions

Subject: Inquiry Regarding Filing Money Recovery Suit Based on Recent Transactions 

I hope this letter finds you well. I am writing to seek your expert advice on a legal matter concerning a recent transaction related to a promissory note dated 25-03-2021.

As per the terms of the promissory note, I lent a sum of money to opposite party, who issued the promissory note acknowledging their debt. Despite repeated attempts to recover the amount,  denied having taken any loan when I sent a legal notice on 2-01-2021.

However, on 8-01-2024, I received a response from advocate reiterating their denial of having taken the loan. I refrained from filing a money recovery suit within the limitation period due to financial constraints, particularly in paying court fees and legal charges.

, on April 17th, 2022,  made a transaction to my bank account through their UPI, paying the interest amount. This transaction raises the question of whether I can now file a money recovery suit based on this new development.

I seek your guidance on the following:

 • Is the transaction sufficient evidence to support filing a money recovery suit?

 • Given the previous denial and subsequent payment, what legal avenues are available to pursue recovery?

 • What steps should be taken to strengthen the case based on this transaction?


 4 Replies

T. Kalaiselvan, Advocate (Advocate)     20 April 2024

If he had paid some amount towards the interest of the said loan and subsequently stopped paying the loan amount or interst amount, then you can issue a legal  demand notice once again on the basis of the fresh or renewed/ acknowledgment of receipt of loan on the basis of the latest transaction. 

But you have to issue a legal demand notice once againb and on his refusal to repay you can file a money recovery suit 

sai kiran   20 April 2024


Smt. Ananthala Ratna W/o. Ananthala Nageshwar Rao
Age: 40 years, Occ: Business,
R/o. H.No.6-11/80/A/1, Plot No.80,
Taraka Enclave, Ram Pally Village,
Keesara Mandal, Medchal Malkajigiri District-Pin: 501301
Under the instructions of our client Battula Rajeshwar Rao S/o. Late Battula
Muttaiah, aged about 44 years, Occ: Business, R/o. H.No.2-3-64/1/23, Jaiswal
Garden Amberpet, Hyderabad-500013, do hereby we are authorized to issue the
following legal notice to you which contents as follows:-
1. Our client states that, yourself and my client are known to each other taking
advantage of said acquaintance in the first week of March 2020 you have
approached with our client and you request him to lend an amount of
Rs.10,00,000 (Rupees Ten Lakhs only) to meet your personal necessities and
business commitments for also run a bar under the name and style “VARUN
RESTAURANT AND BAR” owned by your husband namely Ananthala
Nageshwar Rao considering your request my client arranged and gave a sum
of Rs.10,00,000 (Rupees Ten Lakhs only) to you on 21.03.2020 and you
agreed to pay interest @ 18% p.a. and agreed to pay the same within one
year including principal and interest.
2. Our client further stated that, after one year you have paid only interest i.e.,
Rs.1,80,000/- and sought further one year time for repayment of hand loan
amount along with interest by executing a promissory note dated 25-03-
2021 in favour of my client.
3. Our client further stated that after one year my client requested the
repayment of a loan amount totaling Rs.11,80,000, including principal and
interest. However, you expressed inability and paid only Rs. 1,04,000/- (in
the shape of UPI to our client Axis Bank account, Amberpet Branch in
multiple installments i.e on March 11, 2022 (Rs.50,000 ), March 13, 2022
(Rs.2,000 ), April 16, 2022 (Rs.25,000 ), and April 17, 2022 (Rs.27,000 )
leaving balance amount of Rs.10,76,000 covering both principal and balance
interest amount. Subsequently you sought again an additional six months
to repayment of balance of Rs.10,76,000 along with six months interest.
4. My client further states that after six months i.e. on September 25th, 2022,
my client approached you for repayment of balance amount along with the
interest, allowing sufficient time. Regrettably, you failed to uphold your
promise to repay of the amount. Despite numerous attempts to contact you
and also you deliberately avoiding my client's calls.
5. Later when my client visited your previous address on February 26th 2023 at
Flat no: 111, 1st Floor, Jackies, RK SQUARE, Pillar No: 109, MediPalli,
Boduppal, Hyderabad-500098, it was discovered that you and your family
had moved without informing my client. Later, through well-wishers of my
client learned of your new address at Rampally, House No. 6-11/80/A/1,
Plot No. 80, Taraka Enclave, Rampally, Secunderabad, Telangana 501301.
6. Despite multiple attempts to contact you, my client learned that you
intentionally, deliberately, and willfully have been avoiding payment, despite
having sufficient means.
My client further states that on this day you have to pay the balance amount
and interest i.e. Rs.10,76,000 + interest Rs.3,38,940/- from March, 2022 to
December 2023 total 21 months.
Therefore, you are hereby call upon you, to pay the balance amount along
with interest i.e., Rs.10,76,000 + interest Rs.3,38,940/- from March, 2022 to
December 2023 total 21 months total comes of Rs.14,14,940/- to our client within
7 days from the date of receipt of this notice, failing which our client shall be
constrained to initiate appropriate legal steps against you thorough court of law for
recovery of the above said hand loan amount under Civil and Criminal proceedings
holding you both are responsible for all the costs and consequences arising thereof.
Remit a sum of Rs.5,000/- towards this legal notice charges.
Here is the above legal notice 
Already legal notice sended now my concern is can I file money recovery suit where promissory note is issued 25-03-2021 and legal notice sended on 2-01-24.y doubt is can file money recovery suit

T. Kalaiselvan, Advocate (Advocate)     20 April 2024

It can be presumed that he acknowledged your legal notice hence he paid some amount towards the loan or interest, which clearly makes sense that he acknowledged the loan.  Thus the limitation will start afresh from the date of latest payment, hence you can very well file a money recovery suit on the basis of the promissory note which obtained new lease subsequently, however you may have to issue legal demand notice once again narrating the subsequent events in order to establish the fresh limitation from the date of the last payment and demand the balance amount i.e., principal and interest after deducting the last payment. 

sai kiran   20 April 2024

Already legal notice is issued on 05-01-2024 got reply notice from opposite party advocates stating that any kind of loan not taken mentioned in reply notice

My question is 

should I send again legal notice 

Leave a reply

Your are not logged in . Please login to post replies

Click here to Login / Register