Loan repayed claimed as Loan given
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?
Asked 4 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 .
I have not declared the loan in my accounts since it is my drawings from my company. My brother has also not accounted.
I have informed the court that he has taken money from me and returned to me to my company account in online transfer.
My brother is showing the online transfer money is the loan given to me.
Asked 4 years ago
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
Myself and my wife are the Directors of a Private Limited company. Both of our drawings are more than 10 Lakhs per annum. From that I have given my brother that money.
Asked 4 years ago
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.
Sir, let me know whether he has filed civil suit or cheque bounce case or what is the nature of the suit.
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 .