• Loan default and non payment of rent by tenants

We had loaned our tenants 3 lakhs for a medical emergency they had, in cash, with no evidence except for a hand written undertaking from them on a white sheet, that they had taken 3 lakhs and would be repaying within 2 months. 
It's been 1 year now and we only kept receiving excuses from them. The tenants hadn't paid rent either for the past 5 months. 
We didn't execute any rental agreement with them, nor do we have their identity proofs. 
Is there a way we could secure our loaned amount as well as the rent amount by executing some agreement which has legal backing, now?
Asked 4 years ago in Civil Law

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9 Answers

1) enter into registered leave and licence agreement for giving premises on rent

2) ask tenant to give post dated cheque of Rs 3 lakhs

3) also a covering letter wherein they acknowledge receipt of Rs 3 lakhs and offer to pay said amount within stipulated period

Ajay Sethi
Advocate, Mumbai
87932 Answers
6207 Consultations

5.0 on 5.0

Dear Client,

Issue 15 days noitce for eviction for default of rent payment. And another noitce for repayment of loan. If not paid stick revenue ticket on white sheet and file recovery suit.

Written white sheet attested by any witness.

Yogendra Singh Rajawat
Advocate, Jaipur
21481 Answers
31 Consultations

4.4 on 5.0

1. are the tenants willing to repay your loan and rent arrears at anytime?

2. i suggest if they are agreeable to repay your loan then you can have a document wherein they will agree within the agreed time to repay your money with interest

3. if they default then you can file a summary suit against them

4. i suggest not to include repayment of rent arrears in above agreement

5. you can orally give them some time to clear the rent arrears

6. this is because if you agree to give them time to clear rent arrears through a written document then you will not be able to pursue any eviction proceeding against them for non payment of rent

Yusuf Rampurawala
Advocate, Mumbai
6881 Answers
79 Consultations

5.0 on 5.0

You need to file two separate cases. First is a suit for eviction in jurisdiction court even if you have no rent receipts no issues a tenant cannot unlawfully hold possession of your property.

With regard to the loan advanced by you you can file a suit for recovery of Money along with damages and interest. You need to get his signature admitted in the paper in court to get decree in your favour.

Swarnarka Chowdhury
Advocate, Mysore
1878 Answers
5 Consultations

5.0 on 5.0

Yes, if they are ready to sign a legal document, immediately get drafted an agreement wherein you are required to spell out everything which they owe to you, and get the same executed and registered.

Vibhanshu Srivastava
Advocate, New Delhi
9426 Answers
245 Consultations

5.0 on 5.0

You cannot receive the amount without any solid ground to prove that you paid in money similarly her after standing rent you have to show some documents that they stayed in your house.

Vimlesh Prasad Mishra
Advocate, Lucknow
6848 Answers
23 Consultations

4.9 on 5.0

Sir give tenant notices for the eviction and payment of the rent arrears and a separate notice for the the payment of the amount given for the medical expenses.

Further file a summary suit for recovery of the amount given cash to the tenants.

and a eviction suit for recovery of rent arrears and taking possession of the property. The ground of eviction can be non payment of the rent.

Shubham Jhajharia
Advocate, Ahmedabad
25516 Answers
179 Consultations

5.0 on 5.0

1. Serve them a lawyer;'s notice to repay the loan given to them, and if they still do not then a suit for recovery of money will have to be filed in the competent civil court to recover the principal amount with interest, compensation and cost of litigation.

2. You can sue on the basis of undertaking given by them.

3. Since you have inducted the tenants without executing a lease deed or rent agreement you have to sue them for eviction by filing a suit for recovery of possession in the civil court.

Ashish Davessar
Advocate, Jaipur
30761 Answers
971 Consultations

5.0 on 5.0

You first issue a legal demand notice demanding them to repay the loan amount within 7 days, let them give a reply, after that you can proceed with the recovery process provided the tenant commits to have obtained loan.

For house rent, since they have defaulted,even if there is no written agreement, you may issue a notice demanding them to pay the arrears of rental amount and also to vacate the premises for default in the rent payment.

After that if there is no response or compliance, you may approach court with an eviction suit for the same reason and also can pray for directing them to pay the arrears of rent.

T Kalaiselvan
Advocate, Vellore
78089 Answers
1543 Consultations

5.0 on 5.0

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