My father took a loan of Rs 1.90 lakhs in 1999 from a person for business purpose at 6% PER MONTH rate of interest. My father was in very much need of that money to save his business, so he took the loan from him at such high rate of interest.
And he entered into an agreement with the lender, according to which if he was unable to repay the amount of Rs. 1.90 lakhs (nothing has been mentioned about the interest in the agreement) within the next two years, the lender would become entitled to get a land that was in my father's name, to be registered on lender's name.
Unfortunately, my father could not repay the amount due to heavy losses in the business. Lender didn't get the land registered on his name and made roving enquiries for repayment. My father told him that I won't be able to repay you in near future, so keep the land or wait for few more years.
In 2007, we moved to another city for livelihood. Lender filed a criminal case on my father in 2013 about which my father was unaware. Court gave dates after dates for hearing, but as my father was not aware of the lawsuit filed on him he could not attend any of the hearings.
Now court has issued a warrant on my father's name that if my father is not present in the next hearing, he will be arrested.
As of now, we are ready to give up the land ownership as we are not in a position to repay him in cash atleast for next 2-3 years. It is also very difficult to sell that land and repay him in cash, as that land is situated in a very remote area. However, we can try selling it
Please clarify whether interest on that amount has to be paid for all these years, that too at such high rate.
Please suggest the course of action.