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Lending
Sir, my friend invested around 88 lacs of rupees with me to invest in shares...i gave him estimates that it may give good return verbally and sometimes by emails during discussion.,i never forced him to invest,he invested by his own concern ..and i was sure about the profits..he transfered money through net banking to my account ,my parents account and my friends account.i invested in shares and the stock market broke due to the scam of PNB ..and stock eroded by more than 80% of the value..then my friend started telling me to return his money and termed the transfer as lending.and is asking for 9.3% pa interest on that.and forced me to write on 50 rupees stamp paper..to repay the amount with 9.3% pa..my father and my friend signed as witness on the stamp paper.he has taken 4 cheques signed by me amounting of around 2 crores 30 lakhs and my father's house property deed as security that if i cannt pay the amount by 31st october 2019,he has the right to sell the house and recover the amount.now i dnt have money in bank and he is threatening to deposit the cheques in bank...but i have said him that he can sell my father's house and recover his money.....but still he is threatening.sir what shall i do....i have already paid him 11 lakhs at the beginning.and i really want to pay him..but i dnt have money to pay...so i have said him to sell the house and recovered his amount...and another question can he claim on my father to repay my debts to him.? the house belongs to my father and my father has agreed to me to sale his house to repay his debts ....i have our conversations as proofs that he has invested by his own concent not by force.. that time we had no written documents about the transaction......i have given the written document on 31st oct 2018..he was paying me to invest since 2014 to 2018 january.
Asked 4 years ago in Property Law
Religion: Hindu
14 Answers
Once you have given in writing that you will relay the money with interest and ha e issued post dated cheque’s it is bi ding upon you
2) he can deposit the cheque’s and in it being dishonoured file case against you for dishonour of cheque’
3) find a buyer for the house and from sale proceeds repay the loan
4) ask him to handover original documents of title to purchaser so that money can be repaid to him
5) father is not liable for son debts
sir ,he took the papers because if i cannt pay the money he will sell it and collect money
Asked 4 years ago
Issue him notice to sell the property to recover his dues
1. The entire event is dicey and legally difficult.
2. IF your friend has all the cheque & documents etc.... signed by you and family, THEN he can enforce the same in a court of law.
3. Try to re-negotiate and settle amicably, (thru friends, relatives.... ) since going to court is not going to be beneficial to you or to your career, besides being really expensive considering the amounts you mentioned.
Issue him a notice to return all the paper he forcibly got sign by you and the blank cheques taken from you.
Give him an account of share investment and the net value thereof as on date along with all supporting transactions documents. Sell all the shares. Prepare an account showing final dues payable to him. Pay him the amount by cheque. Stop payment of other cheques.
He can not sell your property unless you or your father execute sale deed.
So nothing to worry .
Do all these at the earliest .
Inform developments for further necessary advice .
That's wrong you can complaint to police if he does any forcible act to recover
1. You are on a very sticky wicket as you signed the agreement in his favour wherein you promised to repay the money and also issued cheques to him. This is a recipe for disaster. Now he can surely file a suit for recovery of money and also a criminal case for cheating apart from cheque bounce prosecution under Section 138 of NI Act.
2. There is nothing you can presently do. If he files the cases then you have to contest those on merits.
3. The voice recordings will not prevail over the agreement which you have signed to make yourself liable.
4. Your father is not liable unless he has also signed the agreement as a borrower.
1. You have done one mistake after another and you are solely responsible to be find you in the soup for your fault alone.
2. if you have proof that money he sent money for investment purpose then your liability to pay him doe snot arise at all.
3. So fight the cases on merit. Your statement on stamp paper can be disputed to be written on force.
Engage a good advocate.
If he Deposit the cheque in the bank and after it bounces then he will issue a legal notice through a lawyer and demand the Cheque amount.
In my opinion issue a notice and ask him to sell your property and collect money .
Without money lending license, non can charge interest on amount. He can only claim principal amount which is left unpaid.
Except from you, he cannot claim from any related to you.
If he is not agreeing for your terms then you have no option than to challenge his case in the trial proceedings.
You can ask him to proceed through court with the cheque bounce case also, you can challenge the same on merits and drag the issue to some extent within which you can arrange to repay the amount through court.
Remember that until the owner of the proeprty is not executing a registered sale deed in his favor he cannot take the house property nor he can sell it without getting the title or ownership of the property.
He cannot sell the house property by himself just because he has the papers with him, the owner of the property has to cooperate by executing a registered sale deed in favor of the prospective buyer.
You should not have given the cheques along with papers of property.
Now only option you have is to negotiate with him and ask him to sell the house and recover the money and return the cheques.
This conversation should be recorded to keep evidence with you.
