• Friendly loan against property

Hello,
2 years back. i gave a friendly loan to my colleague. i paid him through cheque. we made a M.O.U between us where he gave me original papers of his flat as a guarantee. he assured me certain amount he will pay monthly to me as a benefit, until he pays full amount of friendly loan. after 2 years he doesn't gave me my loan amount as well as the assured benefit amount and the flat papers which he gave me, he took a loan on that flat from a bank and a tenant stays over there (on heavy deposit). tenant says he has registered agreement of tenancy through registrar. is it possible to register a tenancy agreement through registrar office on loaned house?
know my concern is how to recover my money? he gave me cheque, flat papers and m.o.u as a guarantee. 
i would like to know what are the legal options open for me?
Asked 7 years ago in Property Law
Religion: Muslim

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4 Answers

1) bank would not grant loan unless original papers are with bank

2) was your equitable mortgage registered?

3) flat can be given by owner on leave and licence basis

4) issue legal notice to friend to repay your loan with interest

5) if he refuses file suit to recover the loan amount with interest

6) also file police complaint of cheating against your friend under section 420 of IPC

Ajay Sethi
Advocate, Mumbai
95222 Answers
7612 Consultations

5.0 on 5.0

1. The property deed is of no use unless it's shown that by depositing it your friend had mortgaged his flat.

2. However on the basis of loan agreement you can file suit for recovery of money.

3. So file the suit and get back your money.

All the best.

Devajyoti Barman
Advocate, Kolkata
22921 Answers
498 Consultations

5.0 on 5.0

1. How did he manage to obtain loan if the original title deed of the property was in your possession?

2. The MOU executed by him in your favour needs to be perused to ascertain if it authorises you to sell the property if he defaults in the repayment of loan.

3. You will have to file a civil suit for recovery of money against him in the civil court unless there is a clause in the MOU which permits you to sell the property to recover the loan with agreed rate of interest. Consult a lawyer with the complete set of documents.

Ashish Davessar
Advocate, Jaipur
30763 Answers
972 Consultations

5.0 on 5.0

If your friend is refusing to repay the loan amout, yo can present th cheque before the bank for collection/payment, if it is dishnored, you may file a cheque bounce criminal case against him.

You may also file a money recovery suit against him based on the evidences for having lent the amount.

You can file an application in the same suit seeking to attach the property before judgment for the purposes of security.

The rental agreement can be registered with the SRO in the local.

T Kalaiselvan
Advocate, Vellore
85422 Answers
2239 Consultations

5.0 on 5.0

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