• Friend is not returning borrowed money

I lent some money to a friend who used to live in the same apartment. He presented himself to be broke and jobless, and had no money for even food. The total amount is about 2,75,000 including a personal loan of 2 lac, which was taken in my name to help him out.
The borrowed money was agreed to be repaid in small amounts. However, nothing was noted in form of legal agreement/contract. 
But the person now has started making excuses everytime I approach for the money.
What legal actions can be taken and how the case should be approached?
Asked 2 years ago in Criminal Law
Religion: Hindu

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15 Answers

1. You can file a Police FIR, requesting investigation and charge-sheet, for offences like cheating, intimidation, fraud, breach of trust etc.... against the person, supported with all relevant supporting Documents & Witnesses.

2. IF the Police does not take action, THEN you can file private criminal case u/s 156(3) Cr.P.C., in the local Magistrates court, seeking directions to the Police to investigate and file charge sheet. The said Person may come down for settlement.

Hemant Agarwal
Advocate, Mumbai
5612 Answers
25 Consultations

5.0 on 5.0

File police complaint against your friend for cheating, criminal breach of trust under section 406,420 of IPC 

 

2) I presume payment has been made by cheque or bank transfer 

 

3) also issue friend legal notice to repay your money with interest 

Ajay Sethi
Advocate, Mumbai
87212 Answers
6048 Consultations

5.0 on 5.0

You can make police complaint and if you have any evidence against him can produce it. Under oral agreement for breach of contract.

Ganesh Kadam
Advocate, Pune
12308 Answers
184 Consultations

4.9 on 5.0

See you can give a police complaint against him though police citing it civil matter can deny to take complaint or help in that case you have to give a legal notice for recovery of amount and if on notice he fails you have to file a suit for recovery of the amount.

Shubham Jhajharia
Advocate, Ahmedabad
25518 Answers
171 Consultations

5.0 on 5.0

Did you took any cheque as security ?

Mode of money given ? cash or online - if online than possibility that money can be recovered as proof of money given is available.

As an initiate, legal notice will for recovery of money otherwise legal action will initiate for recovery along with interest and compensation at your cost and consequences

Yogendra Singh Rajawat
Advocate, Jaipur
21482 Answers
31 Consultations

4.4 on 5.0

Dear Querist, 

 

Firstly, what can be done is that a legal notice can be send to the person claiming the money otherwise, a suit for recovery of money will be filed against him. probably, this might lead him to provide you the money fearing the legal action. 

After that the suit for recovery of money can be filed on the basis of the oral contract on the basis of which the money was lend to him. 

You can contact me for sending the legal notice and for filing the suit. 

 

Regards, 

YUGANSHU SHARMA 

ADVOCATE 

 

 

 

 

Yuganshu Sharma
Advocate, Delhi
415 Answers
1 Consultation

5.0 on 5.0

Hello,

you can send him legal notice for demand of friendly loan given to him. we can help with you with that.

 

If he ignores it then  we can file criminal complaint of cheating and criminal breach of trust against him.

 

hopefully should get your money back

Nitin Jaspal
Advocate, Gurgaon
36 Answers

5.0 on 5.0

You can at the most file recovery suit but in short of documents it will not stand. At least you will need witnesses

Prashant Nayak
Advocate, Mumbai
26719 Answers
79 Consultations

4.4 on 5.0

Dear Sir,

It would be really helpful if you have some document, like a promissory note, etc. that would enable you to prove that the money that you lent, was infact supposed to be returned on so and so date.

Even if you don't, no matter. The period of limitation for the recovery of debt is 3 years. The period of limitation runs from the date on which the debt was supposed to be paid back. In case there was no such clearly demarcated date of return of payment, the period of limitation would run from the last time the debtor had acknowledged the debt in question. As you can see, time is running out for you steadily, so you will have to act fast. Try contacting your friend, and getting him to acknowledge that he owes you money, which has to be on record, for evidential purposes. That would refresh the period of limitation and would give you more time to initiate legal proceedings.

You can file a money suit under Order 37 of the Civil Procedure Code, but to tell you the truth, it is a cumbersome process, and might take years, unless you have a decent and trusted advocate on your side. If the amount is below ten to fifteen lakhs, file before a civil judge. Most high courts will entertain claims above that amount, though recently the Delhi High Court has altered its pecuniary jurisdiction to only claims above Rs. 2 crores. Kindly verify the pecuniary jurisdiction of the courts in your state, before filing the claim.

I would also recommend filing a criminal case under S. 405/406 and S. 420 (Criminal breach of trust and Cheating and dishonestly inducing delivery of property, respectively) as an additional measure. The criminal charges will not stand in trial, but the judge will accept the case, and knowing he is embroiled in a criminal case, will encourage your friend to pay up faster, unless he is a seasoned debt defaulter.

Please find an advocate you can trust and who will not delay the case simply for his/her own benefit.

Netravathi Kalaskar
Advocate, Bengaluru
4952 Answers
27 Consultations

4.8 on 5.0

Ans: send a legal notice for recovery of money. File a civil suit for recovery of money lent. thereafter file an application for attachment of property of your friend.for releasing the proceeds to be given to you.

Garima Anil Mehrotra
Advocate, Mumbai
514 Answers
1 Consultation

4.9 on 5.0

You first gather evidence of the money transaction between you both.

After that on that basis you may issue a legal demand notice.

If he's not complying with the demands made, you may file a money recovery suit to recover your money.

Without strong evidence it will be really very tough to properly prosecute the case.

T Kalaiselvan
Advocate, Vellore
77366 Answers
1458 Consultations

5.0 on 5.0

1. First you should send him a legal demand notice through your advocate for recovery of dues. 

2. You can file recovery suit if he refuse to return the money even after legal notice.

3. But try to get some post dated cheques from your friend so that recovery of money become easy because in recovery suit you have to prove by some way that you have lend money to your friend.

Mohit Kapoor
Advocate, Rohtak
10688 Answers
7 Consultations

5.0 on 5.0

First send your friend a legal notice.

Thereafter you can file civil suit for recovery of money with interest on the basis of the bank statement. Don't worry you will get your money back. But before that serve him with a legal notice through a lawyer.

Mohammed Mujeeb
Advocate, Hyderabad
19012 Answers
32 Consultations

4.5 on 5.0

How was the remittance made? If remittance was made through bank transfer then you may file a suit for recovery of money in the competent civil court.

 

Ashish Davessar
Advocate, Jaipur
30759 Answers
958 Consultations

5.0 on 5.0

In Absence of any evidence to prove that your friend borrowed money from you, nothing can be done against him.

 

Siddharth Jain
Advocate, New Delhi
5904 Answers
97 Consultations

5.0 on 5.0

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