• Loan repayed claimed as Loan given

Sir,
I have given hand Loan of Rs.400000 to my brother in cash.  He has returned the same by sending the amount to my Company account. Now he has gone to the court saying that the he has given me the loan of Rs.400000 and gone to the court asking me to return the money with Interest.
But there is nothing in writing for this transaction.

What shall i do?

Regards

Suresh
Bangalore
9845059154
Asked 3 years ago in Civil Law from Bangalore, Karnataka
did you declare the loan in your income tax returns ? how did your brother account for the same ? please clarify . 

if your brother has gone to court contest case on merits . deny it was a loan .further mention that there was  no agreement to pay interest .
Ajay Sethi
Advocate, Mumbai
33815 Answers
1875 Consultations

5.0 on 5.0

how did you have 4 lakhs in cash ? did you with draw money from your account to give loan . you ought to have declared transaction in your income tax returns
Ajay Sethi
Advocate, Mumbai
33815 Answers
1875 Consultations

5.0 on 5.0

Now that the case has already been filed against you there is no remedy open to you except to contest his case fittingly in the court. Have you received the court notice asking you to put in your appearance on a fixed date? If yes, then engage a lawyer for your defence. It will not be a cakewalk for you to disprove his case in view of the fact that you did not declare the transaction in your IT returns. It is thus imperative that you engage right away a lawyer so that he can chart out the legal recourse to be followed in the court.
Ashish Davessar
Advocate, Jaipur
20795 Answers
554 Consultations

5.0 on 5.0

Sir, let me know whether he has filed civil suit or cheque bounce case or what is the nature of the suit.
Pradeep Bharathipura
Advocate, Bangalore
4365 Answers
175 Consultations

4.3 on 5.0

it appears your brother has filed a summary suit for recovery of Rs 4 lakhs with interest . contest case on merits . in your affidavit in reply do not admit that you have to repay sum of Rs 4lakhs . in the  event you admit loan transaction  will have to deposit amount in court or your brother may get a decree in his favour .
Ajay Sethi
Advocate, Mumbai
33815 Answers
1875 Consultations

5.0 on 5.0

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