• Loan repayment and cheque bouncing

On september 2012 I gave a loan of 3500000 to my uncle for 18 months with the terms as follows:
1) Interest will be charged @1.5% per month.
2) He issued 3 undated cheques in favour of me amounting 3500000 as repayment of principal amt., 630000 as interest amt of 12 months and 315000 as interest amt of 6 months.
3) I paid him all 3500000 through bank only.
4) I did not got any money from him as on date. He always asking me for more time.
5) In june 2013, we signed an loan agreement in front of Notary, with above mentioned terms.
6)The tenure was finished on 28 feb 2014 
Is there any specific limit to lodge a Court case for recovery of the money? How much time is left?
What are the chances?
Asked 7 years ago in Civil Law

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5 Answers

1) suit for recovery has to be filed within period of 3 years .

2) agreement was signed in june 2013

3) agreement was for 18 months and expired in February 2014

4) if no payment has bee made file suit immediately to recover your dues with interest

5) you can also file case of cheating against uncle under section 420 of IPC

Ajay Sethi
Advocate, Mumbai
95222 Answers
7612 Consultations

5.0 on 5.0

1) you cans eek phone consultation from kaanoon.com and call me

2) you can file suit within period of 3 years of expiry of agreement

Ajay Sethi
Advocate, Mumbai
95222 Answers
7612 Consultations

5.0 on 5.0

Dear Concerned,

In reference to your notes above the Suit for recovery has to be filed within 3 years from Feb 2014 .

Also if any of the cheque is yet to be presented to the bank , the cheque can be deposited and when it bounces a notice can be sent followed by filing a cheque bounce case.

Best of luck

Atulay Nehra
Advocate, Noida
1309 Answers
58 Consultations

5.0 on 5.0

1. In the instant matter you shall have to file the Money suit with in 3 years from the date of the cause of action which may be considered as the date of the loan agreement being June of 2013.

2. Collect a letter from your Uncle acknowledging his debt on you and file the suit with in 3 years for the date of his signing the said agreement.

3.Alternatively, you can also get the said cheques filled up with present date adding the interest and present it with your Banker.

4. In the event of its being dishonoured, you can get the cause of action of the date of the cheque and filed the M.Suit against him.

5. You can also initiate a cheque bouncing case u/s138 of N.I. Act where in your uncle will try to prove that he had issued that cheque as security cheque which does not come under the purview of N.I.Act and your lawyer shall have to defend the said argument that the said cheque was issued on the same date as has been mentioned on the cheque towards the repayment of the entire loan amount with interest for which it is not a security cheque.

Krishna Kishore Ganguly
Advocate, Kolkata
27245 Answers
726 Consultations

5.0 on 5.0

1. The last date of the tenure may not be considered as the date of the cause of action for filing the suit if the loan agreement specifies the payment term before that.

2. the best thing will be to take a debt acknowledgement letter from your uncle and also to use the cheque to create a fresh cause of action.

Krishna Kishore Ganguly
Advocate, Kolkata
27245 Answers
726 Consultations

5.0 on 5.0

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