• Recovery of loan given

Hi sir I am Avinash from Hyderabad, I have given loan to my friend 10 lacs in 2016 and kept two empty 100 rupees stamp papers signed and one sale deed original of a property as security. But the sale deed is consist of two Joint owners other owner does not know about this transaction and he has executed a release deed With my friend got registered by paying release consideration amount and became full owner of the property. Now my friend who has taken loan Has become insolvent and not paying my amount. 
Can I have any claim of that property as I am holding the previous joint sale deed Does the empty signed stamp paper can be used after 4 years legally. How ever I do not have Not taken any NOC from the other owner of the property while giving loan to my friend. Please give me best suggestions to proceed further.
Asked 1 year ago in Property Law
Religion: Hindu

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18 Answers

Yes you claim the same against her property. 

Prashant Nayak
Advocate, Mumbai
26719 Answers
79 Consultations

4.4 on 5.0

Issue legal notice to friend to repay your money 

 

2) if he fails to pay file summary suit under order XXXVII of code of civil procedure 

 

3) you can talk to your friend and ask him to execute registered sale deed in your favour as you have original documents of title 

Ajay Sethi
Advocate, Mumbai
87212 Answers
6048 Consultations

5.0 on 5.0

As a matter of fact you cannot use the joint sale deed to recover the loan amount.

But you can seek for attachment of the borrower's share in the property towrds security, before judgment in the money recovery suit.

You can fill the blank non judicial  stamp paper with limitation of just three years as on date and issue a legal demand notice after which you can file a money recovery suit against the borrower.

 

T Kalaiselvan
Advocate, Vellore
77366 Answers
1458 Consultations

5.0 on 5.0

- As per limitation Act, one can recover loan amount within a period of maximum three years from the date of agreement , if any. 

- Since, you having empty stamp paper and the sale deed , then you can use the same for the recovery of your amount. 

- However , you can send a legal notice to your friend , and if no response then file a recovery suit before the court. 

Mohammed Shahzad
Advocate, Delhi
9473 Answers
107 Consultations

5.0 on 5.0

1. The Friendly Loan you have given is classified as "unsecured liability" and CANNOT be legally enforced based on the mentioned Stamp Paper or other document that you may be holding.

2. IF Friend is legally declared insolvent, THEN legally you will not be able to recover your amount.  IF the house is vacant, you may TRY to take over possession and file dispute in local Civil Court to bring the opposite party to the negotiating table.

3. Conclusively after the Insolvency Decree, you have literally NIL scope to get back your money.

Hemant Agarwal
Advocate, Mumbai
5612 Answers
25 Consultations

5.0 on 5.0

You can't give loan as you are not a money lender holding license to advance loan to parties. 

Your transactions are illegal. 

Ramesh Pandey
Advocate, Mumbai
2541 Answers
8 Consultations

5.0 on 5.0

He had mortgaged the property to you by deposit of title deeds 

 

he can claim documents on repayment of loan 

 

Please note that  instrument of deposit of title- deed/equitable mortgage is compulsorily registrable under Section 17(1)(c) of the Indian Registration Act, 1908. ... Article 6 of the schedule I-A of the Indian Stamp Act, 1899 provides for rate of Stamp Duty (SD) chargeable on deposit of title-deeds/equitable mortgage.

Ajay Sethi
Advocate, Mumbai
87212 Answers
6048 Consultations

5.0 on 5.0

Use the empty signed stamp paper as a PROMISSORY NOTE capturing the loan of Rs.10.00 lakhs in it. 

Take the help of the Advocate, and get it  filled by giving date, so that, the validity of the PN lasts fall in October / November, 2020.  It is procedural part, which your advocate will take care.

 

S Srinivasa Prasad
Advocate, Hyderabad
2877 Answers
9 Consultations

5.0 on 5.0

Mere holding of original sale deed will not help you, if it is used as a deposit of title deed as security towards loan availed, it is not of any use to you.

However, the other joint owner may raise an issue. 

S Srinivasa Prasad
Advocate, Hyderabad
2877 Answers
9 Consultations

5.0 on 5.0

- Yes, you can use the two said documents for the recovery of your amount , and if your friend unable to return the amount , then the court can order for property transfer in your name .

Mohammed Shahzad
Advocate, Delhi
9473 Answers
107 Consultations

5.0 on 5.0

Legally speaking not much and no useful purpose for permanent solution would be served upon but may pass some time in false and fictitious ways of litigation before Court of law culminating final results against you. 

You may have sale agreement of stamp papers but what about registration and stamp duty?

No useful advice for you except illegal steps resulting loosing of case.

Our lawful Advice to you as follows-: 

 

You may use that stamp papers for friendly loan without interest and  may file recovery suit for PRINCIPAL FINAL AMOUNT  against your freind .

Ramesh Pandey
Advocate, Mumbai
2541 Answers
8 Consultations

5.0 on 5.0

Before the borrower wakes up,  you should immediately file the money recovery suit. 

In that you can file an application seeking attachment before judgment on the basis of the original title document in your possession. 

T Kalaiselvan
Advocate, Vellore
77366 Answers
1458 Consultations

5.0 on 5.0

A blank stamp paper is of no use. He can lodge a complaint that you took it from him. 

A deed of registration is with you but he has become insolvent. A recovery suit must be filed against him in the civil court.

Rahul Mishra
Advocate, Lucknow
13678 Answers
62 Consultations

5.0 on 5.0

Yes the documents belong to the current owner. You should file a criminal complaint too for criminal breach of trust and cheating.

Rahul Mishra
Advocate, Lucknow
13678 Answers
62 Consultations

5.0 on 5.0

Yes if he the fresh owner he will retain the original documents as well as old Chain of documents for said property

Prashant Nayak
Advocate, Mumbai
26719 Answers
79 Consultations

4.4 on 5.0

No, you cannot make any kind of claim on that property. 

So go for a 420,406IPC FIR against your friend 

Rahul Jatain
Advocate, Rohtak
5365 Answers
4 Consultations

4.8 on 5.0

1. You can get the mortgage deed drafted on the  empty stamp paper that he have mortgaged the property with you and then send him legal notice for recovery of money which you gave him against mortgage deed. 

2. And if he doesn't respond then you can lodge FIR against him for fraud that he sold the property kept with you as mortgage. 

3. You can also file case for cancellation of release deed and recovery suit. 

Mohit Kapoor
Advocate, Rohtak
10688 Answers
7 Consultations

5.0 on 5.0

Chances are bleak, you may challenge before civil court and file a suit for declaration and pray for set aside the sale deed. 

Mohammed Mujeeb
Advocate, Hyderabad
19012 Answers
32 Consultations

4.5 on 5.0

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