When was the agreement executed between the parties?
I have given a friendly loan to a friend and made a contract on a 100 Rs Stamp paper, (not notarized) also the amount was transferred as RTGS, the amount is big, approx, need legal advice on how I can secure my amount also need your advice on how to make a strong contract in case i have to take action for recovery etc.
1) Kindly get signed from your friend as a Promissory note and let me know what is written on 100 rs stamp paper. Get this promissory note registered.
Hi
First of all get the Rs 100 stamp agreement notarized , also ask for post dated cheques for the security of the amount.
Keep in mind that whatever agreement you make with anyone just get it registered with the local authorities.
Thank You
Dear Client,
Get it notorised and on rs 500 stamp and loan should not be on interest. Take blank cheque signed by him. Lending on interest require lending license.
1. The proof you have is enough to nail him down under both civil and criminal jurisprudence.
2. So on this basis you can file a summary suit for recovery of money.
3 In addition to that you can file criminal case for cheating as well.
4. Once both the cases are filed you may get relief soon by way of amicable settlement.
you can either make a loan agreement or take a promissory note from the borrower
it is also advisable to take certain security from the borrower whose value is sufficient to cover the loan amount and which can be sold in case of default without any recourse or consent of the borrower
also advisable to have a notorised document duly stamped
A loan agreement or a promissory note written down on the stamp paper is a valid evidence.
you should file a summary trial case under order 37 of CPC .
Generally summary trial case under Order 37 of CPC should be completed within 6 months from the date of filing of suit unlike other cases which drag on for years.
You need to hire an advocate in this regard so that you can send a legal notice to you friend whom you have given the loan in case he is not able to pay then you can deposit the cheque in the bank and get it bounced later on you can file a complaint under section 138 of Negotiable Instrument Act which is punishable
Ask your friend to sign agreement that x amount is paid as friendly loan
that loan would be repaid in x period
that if he fails to repay on time you would be liable to pay interest for period of delay
take post dated cheque as security
See you have to take promissory note notarised on stamp paper and cheque from said person.
The agreement should specifically contain the amount transaction details, it should mention that it is friendly loan, time limit the agreement should be signed by the witness and notary,
1. You should have notarised the said agreement and also should have collected blank and signed cheque covering the said loan amount for depositing to the Bank.
2. In the above case, you could have initiated action u/s138 of N.I. Act in case of dishonour of those cheques.
3. However, if the borrower agrees, you shopuld get a loan agreement notarised detailing the repayment terms collecting bnack and signed security cheques for repaymentb of the said loan.
4. If he refuses to execute a fresh agreement, file a Money Suit claiming refund of the said amount with bank rate of interest, damage and cost.
1. IF the amount was legitimately given (shown in your income tax returns and books of accounts), THEN you have option of initiating Criminal Prosecutions and Civil Prosecutions, depending on the documentary evidences you hold and depending on the replies to your notices to the friend.
2. Criminal prosecutions: Cheating, Intimidation, Fraud ....
Civil prosecution: for recovery proceedings
Both above prosecutions can be launched simultaneously.
3. Contract /Agreement for "friendly loan" is legally not sustainable in court. To secure amount, some gross liability was to be worked out.
Keep Smiling .... Hemant Agarwal
Yes you can file a recovery suit against him. If you have any cheque given by him you can also initiate proceeding under section 138 of Negotiable Instruments Act.
The amount was given and the agreement was not signed at the time of giving the money. Therefore an agreement has now to be signed after the transfer of the money. Therefore an agreement should be made if the other party is ready. Some blank cheques should also be taken from him basically pdc.
Regards
1. You should have executed a promissory note and also taken post dated cheques from the borrower so that you could file a summary suit for recovery of money and also a criminal complaint case of dishonour of cheque under Section 138 of NI Act against him.
2. Be that as it may, on the basis of the agreement you can still sue him for recovery of money, but the remedy is essentially civil in nature. Civil courts take long to decide the disputes.
With the evidence of the money transaction as well as the loan agreement on a Rs. 100/- NJ stamp paper, you can first issue a legal demand notice to the borrower by registered post.
After the statutory waiting period, if he is not coming forward to settle the amount nor complying with the demands made, you may file a money recovery suit agaisnt him in a civil court ion the basis of the documentary evidences in your support.
Hello,
A contract has to be made with specific conditions of repayment.
Take a post dated cheque of the date on which he promises to pay back the amount so that the amount is secured.
Regards
Let me know if I can be of some help
my friend is asking some more amount, so its a chance I can club the previous loan amount in a new promissory note do the notary and take PDC, should I mention the interest component on the new note or just go as a friendly loan etc, I am originally from New Delhi, can anyone help me in Delhi as a consultant? to draft the contract and help me in registering it or notarizing it?
If you want interest then you should mention interest rate on loan advanced
2) agreement dues not require registration
3) you can contact any lawyer for drafting agreement by making payment online of legal fees for drafting agreement
Interest cannot be taken if no legal license is there so even you are claiming interest make same as the principal amount only.
1. Get the agreement registered if he agrees to do that. it wont cost you much.
2. Alternatively, it can be notarised.
3. Make a repayment schedule and cover up the interest portion while seduling the dates and amounts for the repayment since as per law for lending money to others against interest, you shall have to take approval from the RBI.
4. Collect PDCs and also letters from him confirming that he has handed over those cheques to you towards repayment of the loan availed by him from you as otherwise, he can simply make a police diary informing that he has lost those cheques which were signed by him but were unfilled and then inform the bank not to honour tghose cheques if presented by any body.
5. You can also get those PDCs filled up giving dates for deposting and in that case you shall have to take fresh cheques in case you want to extend the repayment period.
It is your decision to grant further loan.
You may go by your proposal if that may give you more authenticity and strong evidence for loan and recovery.
You can contact any advocate hailing from Delhi from this forum on further issues.
You can get a new promissory note executed, if you are extending a new loan to your friend.
Also, feel free to call, if you need any legal assistance as I am practicing in New Delhi.
The amount previously taken from you should be mentioned and you can take interest from him if you like.it is a personal decision of yours. Pdc should be taken from him.
Regards
1. IF possible, take separate new Cheques for earlier amounts and new loan amounts.
2. However it would be highly unwise to lend more money to such people.
1) I can prepare a Promissory draft for you and get that same draft registered along with interest as per your wish.