Hi I have a supplier whom I do business with since 10 years and the conduct of the party is good. He is starting a new business line and requires a loan of 3lakhs. HE approached me, and I asked him to provide some surety. He wants to offer me the rental agreement as a collateral. IN this agreement, he has paid a security deposit of 9 lakhs to the owner, by way of cash. I have some questions 1. FOr me to loan him the money, Which deed / letter , I must execute, so that the same is valid in the court of law? 2. Such a deed must be registered?? In such deed, which is the most important clause to be incorporated? 3. Should I notarise the deed?? 4. What must be the value of the stamp paper?? 5. What action, i must take in case of default.?? Regards xxxxxx
First answer received in 10 minutes.
Lawyers are available now to answer your questions.
Take post dated cheque’s for loan amount
2) letter acknowledging receipt of loan is sufficient
3) it should mention period within which loan would be repaid rate of interest if any payable
4) no need for registered deed
5) in case of default file complaint under section 138 NI for dishonour of cheque
How come Rental agreement will become surety against your goods. The owner is different, it can be possible if owner comes and sign as surety for Goods amount till 9 lakhs rupees than you can claim from owner if supplier turns unpaid in the future.
1. For me to loan him the money, Which deed / letter , I must execute, so that the same is valid in the court of law?
Answer: Normal Promissory or Company agreement you need to prepare and registered it.2. Such a deed must be registered?? In such deed, which is the most important clause to be incorporated?
Answer: Yes, if transactions is of a big value.
3. Should I notarise the deed??
Yes4. What must be the value of the stamp paper??
Depends upon how much amount business turnover you are going to perform in the FY.5. What action, i must take in case of default.??
Surety is the best , and take full payment of 3 months then provide further credits.
The rent agreement is no surety. It will not be good option for you,
Its better you take some other collateral security or promissory note from him or cheques.
If you execute an mou or a loan agreement then registration will be a good option.
It depend on money value
you need to take different steps in case of civil and criminal proceedings
1. A money lender must be registered with the concerned authority to lend money. Lending money needs license.,
2. You can execute a MOU., but there must be some kind of specific performance on the part of one party .
3. It has to be notarized.,
5. In case of default you can sue him for breach of contract and for specific performance.
Regards
Can you please tell me -
1. He wants money in cash.
2. Who is owner of the property for which he is giving rent agreement.
Hi all, He wants the money in cash. The owner of the property is some other person, whom I do not know personally. What kind of specific performance on the part of the party can Iinclude, in case of MOU? What are the most salient points to include in the loan agreement?? Can I create first charge for the Security deposit in the rental deed, as he has handed over the notarised original deeds to me.
First ask him get the Rental agreement registered and than submit along with MoU under specific performance.
You have to involved owner into you surety agreement, because he had taken deposit against his property value and given to your supplier for use. So you can't claim this deposit once he supplier becomes defaulter.
Because you transaction stand secondary and owner transactions primary in the eyes of law. See at any cost you have to bring him in the picture and make the registration agreement.
1. The rental agreement is not a collateral security hence do not accept the same.
You may obtain a promissory note and also a loan agreement duly notarised to safeguard your interests, besides the copy of the property documents, if any, so that you can get his property attached at a later date when he is refusing to return the loan amount.
2. It need not be registered, for including the important clauses you may either contact a local deed writer or an advocate.
3. The loan agreement deed can be notarised.
4. It can be up to Rs. 100/- also.
5. Proper legal action as per law for recovery of money.
1. Do not pay the loan amount in case.
2. The rental agreement between him and the owner of some other property is not a proper deed that can be accepted as collateral security for the loan amount to be advanced, hence don't accept this deed for giving loan.
3. You cannot get all the answers for your irrelevant questions becasue you are not serious about getting back your loan amount and it seems you are interested only on the interest amount for the loan you are going to advance to that person, hence you better get a MOU drafted by as local lawyer.
4. You were advised that the rental deed is an illegal document as far as you are concerned and you cannot take any action against this person based on the rental deed to recover your loan amount in case of default in future.
1. Legally you cannot enter into any agreement with the landlord of the supplier and cannot claim any amount accordingly from him , if the supplier fails to return the loan amount to you.
- You can directly enter into an agreement for loan with the supplier or can take security post dated cheques as well .
2. Further you cannot also mention for the recovery of the said security deposits in your agreement with the supplier , legally it will go against you.
3. The agreement with the supplier can be notarised or registered .
4. At least Rs.100/- , otherwise you can registered the same from the office of the Registrar.
5. If you will enter into an agreement with the supplier , then on the basis of agreement you can recover loan amount after filing a Recovery case before the court.
- You cannot bound his landlord legally under your terms & conditions.
Don’t give any money in cash
you can engage lawyer for drafting loan agreement
it should mention tenure of loan , rate of interest , repayment of loan period
Sir,
You are a kind hearted person and have money in your pocket. The Supplier knows it very well and that is why he wants to cheat you with the money you have with you. The reasons are transparent which you cannot see with your eyes.
1, He wants money in cash. In case of dispute it is not possible for you to prove from where your brought this amount of Rs.3.00 lakh.
2. He would never take any cheque or transfer in his account.
3, Rent agreement is not a collateral.
4. He would not give you post dated cheque.
5, You have no licence of money lending.
6. He would not have the permanent address and property in his name.
7. He would never give you original title documents of his property.
My sincere opinion is to stay away from the supplier and save your hard earned money failing which you will be spending your rest of the life to visit courts and invites unwanted worries for ever and loose the relation as well.
Take a reverse gear in all possible means.
Even if, still you want to help him, you can go ahead. Good luck.
The deal is not safe.
specific performance will work with MOU.
yes you can create charge
Its wrong deal you must desist and keep away from such offer.
Rent agreement is no surety.
Take post dated cheques from him.
Dont loan to anybody on their party property security. And giving loan on interest without lending license is illegal. No specific performance of such agreemnt.
Execute an MOU and take Cheques, Mention Loan amount with cheque numbers.
dont pay in cash, you can pay him through NEFT IMPS Or Cheaque.
To discuss in detail get in touch with me as the terms and conditions can be included only after detailed discussion.
Regards
1. You can execute an agreement mentioning that you have given money to him as loan.
2. No need to execute any deed but you can get the agreement registered and take post dated cheques from him.
3. You can file case under section 138 ni act against that person if cheque get bounced on date mentioned in the agreement.
4. Rent agreement will not have any value in this case.
Take promissory note or signed cheque without writing date on it, to the tune of the said amount.
The Promissory Note / Cheque will serve your purpose.
If you want to get the transaction captured in writing, MOU will suffice, it can be on Rs.100/- Stamp Paper, wherein, make the Owner as consenting party to the MOU and make a clear statement as to your charge on security deposit lying with the owner.
If you give him the money in cash, there will not be proof of give and take, as such, to avoid complication you can give him bearer cheque. Further, it will not have impact on your ITR.