I gave Rs 5,00,000 to my friend for business and he gave me cheque of same amount for guarantee.And he promished that if i need my money back than let me know 1 month advance so that i will return your money.And when i asked my money back before 2 months than he is not ready to pay the amount.So please suggest what should be the path forward.As i have cheque in hand.
Asked 2 years ago in Business Law from Delhi, Delhi
First of do not worry,do you have any receipts of receiving cash from your friend,how do you prove that you have given your friend this amount,is there any witness.can you prove your source of money from which you have given the amount,kindly explain in detail for proper advice.
Advocate, New Delhi
Fill up the cheque and present it to bank for encashment. If it bounces then issue a lawyer's notice for recovery of money, and file a case for his prosecution for cheque bonce if he does not honor the notice. Simultaneously, file a case for recovery of amount advanced along with interest and the amount you incur on availing the services of your lawyer.
depositt the cheque . in the event cheque bounces issue legal notice under section 138 of NI calling upon your friend to pay sum of Rs 5 lakhs within period of 15 days from date of receipt of notice .
in the vent he fails to make payment file complaint before magistrate court for dishonour of cheque .
it is advisable to also file summary suit under order XXXVII of CPC for recovery of sum of Rs 5 lakhs with interest .