My father, and 2 brother took a loan from private financier to start a business and renovation of house during demonetization of 9 lac in which 2 lac by cheque in the account of brother and rest in cash for this he took signed cheque, signed white blank paper of father and brothers and after take property paper but in the month of july18 i have converted property paper leasehold to freehold and original paper of freehold is with us now we have no money to give him and ask him to settle all debt by selling the house but he is threatening us to seize the house by writing on blank paper we have told him to go to court and ask him to send us legal notice. i want to know what should i do we are 4 brothers (2 married) what are the possibilities in this case??
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Financer would present the said cheques for encashment and if they are Dishonored keyboard proceed to file a case under section 138 of the Negotiable Instruments Act, wherein your lawyer can buy you sometime to pay him off.
He has no right to sell your flat on your behalf. You should also give a intimation to the police that said person has taken your father's and brother's signature on blank papers by way of coercion and is threatening you to transfer the property in his name.
You can get time for repaying the loan and protection from police.
file police complaint against private financier of criminal intimidation under section 506 of IPC
2) also issue legal notice to financier to return blank paper , signed cheque taken by him forcibly from your father and brothers
3) in the event he presents cheque and issues legal notice deny allegations made in legal notice .
4) rely upon police complaint filed and earlier notices issued to him to return blank signed cheques and papers
You can file a civil suit against him for permanent injunction restraining him and his representatives from interfering with your possession and trying to forcibly dispossess you from the property in question.
As for the cheque, if he were to file a complaint under the Negotiable Instruments Act 1938 (assuming it has already been dishonoured or is likely to be dishonoured), your best bet will be to offer to settle at the first available opportunity. You would be free to propose any settlement subject to its acceptance.
Have you considered applying for a personal loan from a bank to clear this debt?
Please feel to ask any follow-up questions.
Sir based on just blank paper the financier cannot take the property. Though using cheque he can start a 138 NI act proceeding against the person who gave the cheque further the property cannot be transferred seized in any case as for transfer of same the person need registered deed and signature of owner of the property.
You can sale the house and settle the debt he has no right on house just based on the blank paper you can give him a notice for same.
you should immediately file an FIR, if you are getting constant threats. You can consider lodging an FIR with the police station that falls within your area..
seizing property is illegal for private financer
He is just threatening you. No strong case can be made against you
Dear Client,
Ownership of the property or mortgage cannot be transfer without registered deed, You can sell the property and adjust the debt without his consent. He cannot do anything.
SHOULD I GO TO COURT FIRST OR LET HIM SEND A LEGAL NOTICE????
Issue legal notice first to financier
It all depends on how determined you think he is. If you fear that he is very likely to try and dispossess you, I would advise you to go to Court as early as possible. But if his threats are just that then you can bide your time and figure out as to how you can get him to settle this amicably. You can always send him a legal notice of your own, asking him to cease his threats and desist from acting on them in an illegal manner.
You can send him a legal notice then in case he threatens a complaint can be filed and legal action can be initiated.
It depends on how you people defend your interests in court if he files a money recovery suit.
In any case even if the court gives a judgment against you, in the EP, you may request for payment in installments as per your convenience.
SHOULD I GO TO COURT FIRST OR LET HIM SEND A LEGAL NOTICE????
He is the lender, so he has to send a statutory legal demand notice after which he only shall approach court and not you.
You should file a police case against him. The legal notice can also be sent simultaneously.
There is no way he can seize the house from you. However, before you take any action, let him send you a legal notice.
Even if the matter goes to court, it can be easily contested that the signature on the piece of paper is forged.
