• Return of loan

Hi, 
I have given loan of Rs. 4 Lacs to a developer firm on 12% Interest per annum for a period of 3 years in 2015. Interest was payable on quarterly basis by RTGS transfer. We signed MOU accordingly but not registered/notorized. Developer did not honor quarterly interest payout & then did not return the invested funds as well. 

Now developer is asking to sign cancellation of MOU (earlier expired in 2018 as it was for three year) and also not ready to give interest. 

Question
1. If earlier MOU was for one year, where is the questio cancel the earlier MOU? 
2. What is the right legal process and document (closure of loan deed or ?) to close this transaction?
3. How can have him legally pay interest?

With warm regards
Maheshkumar
Asked 2 years ago in Criminal Law
Religion: Other

3 answers received in 10 minutes.

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17 Answers

You can file a suit for recovery under specific relief Act against the said developer and get your interest

Prashant Nayak
Advocate, Mumbai
28106 Answers
93 Consultations

4.4 on 5.0

Sue the builder to recover your money with interest 

 

2) suit has to be filed within period of 3 years of expiry of MOU 

 

3) don’t cancel the MOU 

Ajay Sethi
Advocate, Mumbai
89092 Answers
6362 Consultations

5.0 on 5.0

Cancellation means he wants remove evidece of laon given by cancelling it. Better file recovery suit. Limitation is passing almost.

Court will grant recovery order with up to 9% interest. 

Without lending license, you cannot charge interest so court will decide interest rate.

MOU already expired. Now start recovery process before which you lost due to delay.

Yogendra Singh Rajawat
Advocate, Jaipur
21481 Answers
31 Consultations

4.4 on 5.0

- The validity of any agreement is three year from the date of its execution or from the date of knowledge.

1. Since, the date of expiration already passed , hence the said MOU has lost its value legally, and hence no need to sign the cancellation of MOU.

2. That MOU has already expired , hence you can enter into a new MOU/Loan agreement with the builder . 

- Your query is not clear to reply in detail. 

Mohammed Shahzad
Advocate, Delhi
10324 Answers
124 Consultations

5.0 on 5.0

You should at first serve him a legal notice, followed by a case for recovery of the amount.

When the court will be deciding your claim, then interest will also be considered.

Nirmit Srivastav
Advocate, Lucknow
60 Answers

5.0 on 5.0

1. If the period of 3 three on duration of the MOU has comes to an end then there is no need to cancel it separately.

2. However there is no problem is cancelling it either but if you do then you can not fie any case to recover the dues which are still payable to you.

3. So without going for cancelling it file a case before the consumer frum wherein you will get all reliefs indulging refund, interest and damages. 

Devajyoti Barman
Advocate, Kolkata
22515 Answers
409 Consultations

5.0 on 5.0

The loan along with the interest hasn't been paid yet by the builder. File a recovery suit in the civil court.

Rahul Mishra
Advocate, Lucknow
13846 Answers
65 Consultations

5.0 on 5.0

If the borrower had not paid any amount for the last three years  towards the loan repayment of loan interest  then it is barred by limitation, hence you cannot claim any money from him due to this barred limitation.

Whether you cancel the MOU or not, it is now infructuous and not enforceable.

However if the borrower acknowledges the loan now  in writing , then you can file a money recovery suit for the loan mount as well as for the interest amount for the last three years.

 

T Kalaiselvan
Advocate, Vellore
79250 Answers
1618 Consultations

5.0 on 5.0

Please try to take refund of your Principal Amount as soon as possible. 

If able to take cash/cheque take it and sign cancellation of MOU no harm.

MOU and your transaction have lost ground to go for recovery suits before Court of Law for the reasons limitations. 

You can't go for Criminal Case as it's a civil case. 

Take whatever you receive before signing cancellation of MOU no harm.

Ramesh Pandey
Advocate, Mumbai
2541 Answers
8 Consultations

5.0 on 5.0

Memorandum of understanding for loan is already cancelled because of the time however your rights for the interest still prevails you have to file a commercial suit recover the amount of interest and principal and he will be made liable through court to pay the entire amount along with the cost of litigation and interest for the excess period.

You have to file your suit in district court as commercial suit and send legal notice to him before going to the court in this regard

Vimlesh Prasad Mishra
Advocate, Lucknow
6849 Answers
23 Consultations

4.9 on 5.0

1. It has already expired. 

2. Are you an authorized organization to give LOAN to someone?. If not than do go into legalities. File a police complaint for 420IPC against him for money recovery. 

3. If you are not an authorized organization to give loan like a bank or registered financial organization than you cannot give loan to anybody for interest, it is illegal. So try out the traditional methods(social pressure,police complaint of 420IPC )to recover you amount. 

Rahul Jatain
Advocate, Rohtak
5365 Answers
4 Consultations

4.8 on 5.0

If the MoU is not registrated as per the registered act than its not valid documents. If you have noted it as Promissory Notes on 100Rs Non Judidial stamp paper plus signed on Revenue stamp than you could have valid point in this regards.

 

Now you can have MoU Cancellation deed take your Principal amount first in hand and than fight for Interest. 

Ganesh Kadam
Advocate, Pune
12423 Answers
193 Consultations

4.9 on 5.0

1. If the developer has not honoured his contractual obligations under the MOU then you can sue him by filing a suit for recovery in the civil court.

2. If he has not honoured his obligations under the contract then it will be unwise for you to execute cancellation deed.

Ashish Davessar
Advocate, Jaipur
30763 Answers
972 Consultations

5.0 on 5.0

1. Firstly do you have a money lending license if yes you may file suit to recover the interest if not you cannot legally charge interest and recover same.

2. You may take the refund of principal amount and cancel MOU as later builder may refuse or deny to return amount and it will long process after that.

Shubham Jhajharia
Advocate, Ahmedabad
25516 Answers
179 Consultations

5.0 on 5.0

Dear Sir,

Even though the MOU was not registered, you may have several documents, call recordings, whatsapp conversation, emails etc. to prove that loan was taken by him and thus you may serve legal notice and sue him accordingly. 

Ganesh Singh
Advocate, New Delhi
6646 Answers
16 Consultations

4.5 on 5.0

You can file civil or criminal proceeding for recovery of money. Civil proceeding shall take more time and also more expensive because court fee is applicable in proportionate to money claimed for recovery and it is pre-condition in civil suit.

You can also initiate a criminal proceeding for the offence punishable. Criminal proceeding is swifter than civil proceeding. . 

Mohammed Mujeeb
Advocate, Hyderabad
19032 Answers
32 Consultations

4.5 on 5.0

1. You should execute a cancellation agreement to cancel the MoU and mention that principal amount is returned.

2. The right way is making a cancellation agreement so that no dispute arise at later stage. 

3. Once you make the cancellation agreement then chances to recover the interest will become null.

4. My suggestion is that you should take the amount builder is paying and close the transaction otherwise it can be difficult to recover principal amount 

Mohit Kapoor
Advocate, Rohtak
10687 Answers
7 Consultations

5.0 on 5.0

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