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  • Bad loan to a relative

I loaned my uncle INR 33 lacs on 24% annual rate of interest. But from last last 2 years he is neither paying the interest nor is he returning the principal amount. The amount was paid through bank from my mother's, sister's and my own account. I have his call recordings where he admits of receiving the money and would repay me as soon as possible. But I havent made him sign any agreement or any other legal document. What should be my course of action to recover my amount as soon as poosible
Asked 7 years ago in Criminal Law
Religion: Hindu

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14 Answers

You may file suit for recovery of money in the appropriate court of law after paying the requisite court fee, which depends on the amount of money taken by your uncle on loan . Civil litigation, especially recovery suits generally termed to be a long drawn battle and regarded as something best avoided, is not so. The general belief that by filing a recovery Suit against a Debtor will go on for years at large, is not so, if one knows the real scope of Order 37 of the Civil Procedure Code, 1908. You may engage a good lawyer to this effect.

Mohammed Mujeeb
Advocate, Hyderabad
19382 Answers
32 Consultations

Dear Client,

You can take recourse of police complain for fast recovery. Rare possibility if police will register FIR as matter is civil in nature. Still can use some approach.

Otherwise recovery suit last option. Time consuming, at least 2 years and don`t mention that money given on interest but just gratuitous lending.

Yogendra Singh Rajawat
Advocate, Jaipur
23085 Answers
31 Consultations

issue uncle legal notice to repay the loan with interest 

 

2) if he refuses file summary suit under order XXXVII of code of civil procedure 

 

3) i presume loan was advanced by cheque and you have bank statements of funds transfer in uncle account 

Ajay Sethi
Advocate, Mumbai
100026 Answers
8164 Consultations

File a suit for recovery

Netra Mohanchandra Pant
Advocate, Navi Mumbai
1590 Answers
5 Consultations

Dear Sir,

Yes. You can recover the amount which you have given as a debt to your Friend if you have bank statement. For recovery of the debt amount firstly you have to send him a legal notice and if after receiving the notice he failed to make the payment then you can file a revovery suit.

Netravathi Kalaskar
Advocate, Bengaluru
4951 Answers
27 Consultations

Eventually the money lending is not allowed but you can receive your amount paid through banking channel as a friendly loan without interest and for this purpose we have to file money suit in the Civil Court if you have any promissory note of him you can claim the amount easily even if you don't have then the money suit more than enough

Vimlesh Prasad Mishra
Advocate, Lucknow
6851 Answers
23 Consultations

See firstly you are not money lender so cannot ask interest from him. You can only.ask the principal amount. So issue him legal notice to repay the amount if on notice he fails to repay then a suit for recovery of same has to be filed.

Shubham Jhajharia
Advocate, Ahmedabad
25513 Answers
179 Consultations

Send him a legal notice, calling upon him to repay the dues that he owes to you.

In case he fails to do the needful despite the legal notice, file a summary suit for recovery under ord.37 cpc.

Vibhanshu Srivastava
Advocate, Lucknow
9767 Answers
323 Consultations

you need to file suit for recovery in this case in civil court.

Prashant Nayak
Advocate, Mumbai
34702 Answers
249 Consultations

A suit for recovery of money may be filed in the civil court. The court shall issue notices to the uncle and would order recovery if you have sufficient proof.

Regards 

Rahul Mishra
Advocate, Lucknow
14114 Answers
65 Consultations

Hi,

In case of no legal or valid agreement, it would be difficult to regain the amount. But, you are suggested to send a legal demand notice for return of loan. If not returned then also, file the recovery case.

Ganesh Singh
Advocate, New Delhi
7172 Answers
16 Consultations

Dear Sir

 

- Do file a petition at Civil Court for recovery of suit along with all recordings and evidence in hand.

- Also have the bank statement and if any amount receive from your Uncle in account as it will help you to establish your case. 

- Before proceeding do consult local lawyers as they will advise you better having all the evidence in place physically.

 

 

Regards

 

Vivek Arya

 

Retired Lawyer
Advocate, Gurgaon
767 Answers
6 Consultations

Since the evidences in yor possession is not strong enough to wage a legal battle with him to recover your money from him, you better approach a local advocate and issue a legal demand notice on yor behalf and also on behalf of your mother and sister for demanding the return of their monies as well.

in the legal notice you can mention about the audio recorded evidences and your intended actions through police also in this regard if he fails to comply with the demands made.

This legal notice will be a strong evidence besides the bank statements to prove the transactions. 

You can also approach police with a complaint so that he will be summoned and you can get an agreement in writing in which he will commit to the loan availed which will serve as another evidence to sue him in the civil court for recovery.

You may discuss with your advocate on all such further issues.

 

T Kalaiselvan
Advocate, Vellore
90228 Answers
2507 Consultations

  1. As per the information mentioned in the present query, makes it clear that though you may not have any agreement with him for repayment, but still you have transferred through bank you have a strong case to get those back from him.
  2. But, you are not the financial institution which can demand for interest.
  3. So, would advice you to not to disclose that you lender money for interest, though you would be getting interest of 18 percent per annum as per law of suit of recovery of money before the court of civil law.
  4. You please reveal the exact timing of your timely demands as there may be issue of limitation to ask for return of the money.

Sanjay Baniwal
Advocate, South Delhi
5477 Answers
13 Consultations

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