• Non-repayment of loan

Dear sir,

I had given a loan of Rs. 28 lacs from my individual personal account to Mr. Raj Purohit for his business purpose. He agreed to pay an interest amount of 4% per month on the amount and return my money back after one year. But Two years have passed , he is neither giving me my original money back nor he is paying me any interest.

As a security measure he gave me cheques of Rs. 28 lacs from his company account with no date. Please tell me how to recover my money with interest from him.

If i file a case on him, then tell me how much time does it take for such matters to solve in court.
Also, if the judgement comes in my favour, how much money can i expect to get back from him.

Please advise
Asked 1 year ago in Business Law from Mumbai, Maharashtra
1. Well, please confirm whether the cheque is undated or not. if the cheque is undated then you are lucky.

2. If the cheque the undated then put a date on it and place it for honour in bank. if it is dishonoured then you can file cheque bouncing case on compliance of the necessary formalities.

3. You can file civil suit for recovery of money as well.

4. If you have any written proof of such loan then it would largely help in both the civil and criminal case of cheque bouncing.
Devajyoti Barman
Advocate, Kolkata
5219 Answers
54 Consultations
4.9 on 5.0
1. Did you enter into an agreement with him at the time of lending money? If an agreement exists then you can file a lawsuit for recovery and hope to get a favourable judgment. 

2. The absence of an agreement does not stop you from going to court to get back your money, but it will make the journey difficult for you.

3. If the cheques given by him do not bear any date then you can present them to the bank by filling in the date. On the bouncing of cheques you may file a case for cheque bounce against him in accordance with the procedure laid down under the law.

4. The time for disposal would depend on local factors such as the pendency of cases in the court. 

5. You can recover the entire principal amount along with interest if the court rules in your favour.
Ashish Davessar
Advocate, Jaipur
18151 Answers
448 Consultations
5.0 on 5.0
1)was any written agreement signed wherein Mr raj purohit agreed to pay interest at 4%pa . 

2) if cheque has been issued you can after filling in date deposit the cheque . 

3) if cheque is dishonoured you can file complaint under section 138 Negotiable instruments act 

4) you can  file summary suit also under Order XXXVII of CPC for recovery of money 

5) cheque bouncing cases take 5 years to be disposed of in Mumbai 

6) in summary suits you can obtain decree faster if borrower does not contest proceedings
Ajay Sethi
Advocate, Mumbai
23267 Answers
1219 Consultations
5.0 on 5.0
1. You can not claim interest unless you have proper license to lend money against payment of interest from RBI,

2. Moreover, you can not claim 4% interest i.e. 48% interest per annum,

3.You can say that you had lent him some amount against payment of bank rate of interest which you will loose for not keeping in the Bank,

4. While claiming that you had lent some amount (may be more than Rs.28 lakhs, you shall have to prove that you had that much of amount which you had withdrawn from the Bank and/or arranged from some source),

5. Do not show that those cheques are security cheques since sec.138 of N.I.Act is not applicable on security cheques as per recent judgement of the Supreme Court,

6. Now you fill up the cheques with current date and deposite with Bank,

7. When the cheques are dishonoured, take appropriate action u/s138 of N.I. Act,

8. You can also file a Recovery Suit claiming return of the said amount lent with interest, damage and cost,

9. You can also file a criminal case of cheating you by not returning you the amount taken from you even after promising.
Krishna Kishore Ganguly
Advocate, Kolkata
12113 Answers
231 Consultations
5.0 on 5.0
Dear Querist
as per the section 138 of NI act the punishment is double amount of cheque and two year punishment.

present the cheque for encasement before bank and after getting the return memo from the bank then issue a notice through lawyer within one month from the memo and she he is not make the payment within 15 days from the receipt of the notice then you may file a complaint against him before court u/s 138 of N.I. Act.

You may also file a civil suit for recovery against him before civil court under order 37 of CPC and claim your money along with interest and litigation charge.

both the procedure may take more then 1 year to decide.
Nadeem Qureshi
Advocate, New Delhi
3534 Answers
130 Consultations
4.9 on 5.0

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