• Unable to repay the Loan

I Borrowed Rs.3 Lakhs from a friend of mine on Jan 2014 for a period of 2 Months! I've issued a Cheque for the same for March 2014. Am unable to repay the money as promised as the money was invested in speculative instruments! I've adequately explained the reason to him and assured that the money will be repaid in whole or in trenches before December 2014. He's unwilling to relent and wants to pursue the Issue Legally! I lost my source of Income and am totally broke and I just cant raise any loans to repay him now. If the Cheque's presented, then it sure will be dishonored due to insufficient funds. Naturally I would be booked under section 138 of NI Act. 2 years of Imprisonment and/or/both twice the borrowed money as penalty.
Am 38 and dread the thought of spending time in prison. I got myself in an extremely stressful situation..Can you please suggest what I should do to avoid these!
Asked 2 years ago in Criminal Law from Chennai, Tamil Nadu
You can receive legal notice for repayment of loan within 15 Days from your friend and if same is not paid then Case us 138 Will be lodged, in that case you have to take bail  from MM court and contest the case on merits.
Soumya   Kundu
Advocate, Kolkata
50 Answers
0 Consultations
4.8 on 5.0
u will receive legal notice. u must reply to legal notice by taking legally available defence. then fight case on merits. if u take proper defences like cheque issued as security then u will succeed . for brief u may call me
Avdhesh Chaudhary
Advocate, Greater Noida
565 Answers
20 Consultations
3.9 on 5.0
keep one thigh in mind by sending you in jail your friend can not receive this amount,try to explain him the same and make serious efforts for repayment
Rajeev Bari
Advocate, New Delhi
1506 Answers
92 Consultations
3.5 on 5.0
Since you are aware of the legal connotations I will not repeat the same herein for the sake of brevity.

The only way you can escape a criminal prosecution which may end up in you being sentenced to imprisonment for 2 years, is by persuading him to give you more time to repay the loan he had advanced to you. The court will not shower any leniency on you regardless of your willingness to pay the same. Time will not be extended by court. Only your friend can extend the time. You have to use your skills of persuasion to the optimum.
Ashish Davessar
Advocate, Jaipur
18088 Answers
448 Consultations
5.0 on 5.0
Dear Querist
if you are ready to pay the amount in Dec-14 and he is not agree for this then no need to worry, sit tight and wait for notice and filing the case before court in this process he lost his 3-4 months, when you received summon appear before court get bail and apply for mediation, in this process he lost another 1-2 months, if mediation failed then the court frame the charge on you after that you can file revision or discharge application or application for cross examination u/s 145(2) of NI Act, cross him then the case will be fixed for defense evidence, in this process he lost again 3-4 months, totally 10-12 months he lost and you can file an application for compounding the offence before court and pay the amount with 10% as cost.
Feel Free To Call
Nadeem Qureshi
Advocate, New Delhi
3523 Answers
130 Consultations
4.9 on 5.0
Thanks for your appreciation!
Ashish Davessar
Advocate, Jaipur
18088 Answers
448 Consultations
5.0 on 5.0
my pleasure
Rajeev Bari
Advocate, New Delhi
1506 Answers
92 Consultations
3.5 on 5.0
if you want to extend  time till dec 2014, you call me
K. Mohan Kumar
Advocate, Chennai
10 Answers
8 Consultations
3.8 on 5.0
Your always welcome
Nadeem Qureshi
Advocate, New Delhi
3523 Answers
130 Consultations
4.9 on 5.0

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