We have given a loan of Rs 39 Lakh to a owner of a properitorship firm in muzaffarnagar in the year 2019 at a certain rate of interest payable at a monthly basis. For Which he had issued reciepts of the amount on his firm's letter pad signing on crossed Re 1 revenue stamp with his firm's legal stamp. This year since february 2020 he has been defaulting on his payments continuously for which we seek legal help from you.
1 it's not clear whether there was any time limit for refund or loan was payable on demand.
2. In either event on default of repayment of money you have the option of filing suit for recovery of money.
3. Do take note that unless you have got money lending licence taking interest on loan is an offence.
Send legal notice for refund. If not refunded than have to file recovery suit. Without lending license, giving loan on interest is illegal.
issue legal notice to borrower to repay your loan with interest
2) if he fails to do so file summary suit under order XXXVII of code of civil procedure to recover your dues with interest
3) also file police complaint of cheating against him
File recovery proceedings on the basis of documents you have but if you have money lender licence then say he has taken loan otherwise say he has borrowed money from you on the pretext of returnable with bank interest.
Please issue legal notice fir recovery.
It is important to know that you must hold money lending license issued by the Government of Uttar Pradesh to lend money to people as per Money Lenders Act.
the borrower has admitted liability under the receipts issued to you that he is liable to repay the loan
you can issue him a legal notice to repay the loan within the notice period
on default to comply with the notice, you can file a summary suit against the borrower under Order 37 of CPC
- Receipt with the revenue stamps , means approval for taking the amount , and nothing more , and if you not having an agreement /contract with that firm ,then legally you may not recover given loan amount from him.
- If , you having any agreement for loan , then you can recover the amount with interest after filing Recovery suit before the court.
- However, before filing , you should send the firm and its proprietor , a legal demand notice for the same.
Dear Client,
You have to send a legal notice demanding the loan. If he does not refund the amount within 30 days of receiving the legal notice then you have to file a Suit for recovery.
The contents of the receipt needs to be perused to guide you properly.
Assuming, it to be in the form of Promissory Note then, you need to make a demand asking for demand of the loan advanced to the owner. Failing to respond to your demand, you need to file suit for recovery of money.
For money recovery, only two ways are in civil side:
1) Summary Suit which is filed in District Court but the evidence is so clear that everything reflects on face. This proceeding takes very less time rather than other proceeding.
2) Money Recovery Suit which is also filed in District Court but it takes much time to decide.
In criminal side, you can approach the police or Court on ground of fraud and malafide intention, but this should not help you in recovery.
Please feel free to contact me.
(Rate my answer also)
Are you a registered banking institution. Like bank of any financial cooperative Societies?
I think you are not. So lending money for interest is all illegal.
But now you did, so now file a police complaint against him under 420,406IPC
Have you given loan against surety or any promissory notes or conditional re payment agreement. on that basis you can claim it. If you don't have any money lender license. because court can ask you on what basis you have given loan to your friend.
You issue a legal demand notice to repay the loan and also the arrears of interest.
After that you file a money recovery suit and also obtain an order for attachment before judgment to his property.
Do not give him anymore time for repayment.
If you fail to initiate any legal action on this now then you may not be able to take any action at a later date.
You need to recover the same by filing suit for recovery
A recovery suit must be filed immediately against him in the civil court.
Please note it is necessary to look into the documents to provide proper guidance.
1..You should engage an advocate and send him a notice for recovery of principal amount along with pending interest.
2. If he refuse to return the money or ignore legal notice then file recovery suit against his firm.
Dear Sir/Madam,
It is suggested that you serve a legal demand notice and then file the suit of recovery against him.
Send him a demand notice and upon not complied file a recovery suit.
