• Seeking legal advice regarding financial transactions and property sale

I hope this message finds you well. I am writing to seek your expert advice on a legal matter involving financial transactions and a property sale. The situation involves three parties: myself (referred to as Mr. A), Mr. Iqbal (who requested the money), and Mr. Mohsin (whose bank account was utilized). I believe it would be prudent to provide you with a comprehensive overview of the situation for a better understanding.

Mr. Iqbal approached me in January 2020, requesting funds for working capital. The transfer of funds occurred through UPI and NEFT methods into Mr. Mohsin's bank account. However, Mr. Iqbal stipulated certain conditions for this financial assistance. Specifically, I was asked to secure a personal loan of 5 lakh rupees from Bajaj Finance and provide it to Mr. Iqbal. He promised to repay the principal amount of 5 lakh rupees, along with a bank interest of 50,000 rupees and an additional profit of 1 lakh rupees or any surplus amount as part of the repayment agreement after 6 month.

At the time, the funds were extended to Mr. Iqbal in good faith, without any interest charges. It was understood that he had the autonomy to utilize the funds to generate profits or face potential losses but it should not reflect any kind of delay in payment or in return amount as agreed. This understanding was based on a verbal agreement with Mr. Iqbal.

From January 2020 to May 2023, Mr. Iqbal has returned a portion of the borrowed amount, totaling approximately 1-1.5 lakh rupees. Meanwhile, the bank interest has accumulated at a high annual rate of 14%. While Mr. Iqbal claims that he will repay the remaining amount, I have reason to doubt his sincerity, as he has been providing false information despite having the means to fulfill his obligations.

I would like to inquire if there are any legal implications regarding Mr. Iqbal's use of another individual's bank account, which has potentially placed him in a precarious situation. Additionally, I am curious to know if there are any legal ramifications associated with Mr. Iqbal's purchase of land under Mr. Mohsin's name, subsequent sale of the property, and transfer of the funds (amounting to a total of 16 lakhs rupees) into his wife's account through online transfers and self-checks issued in the bank.

Unfortunately, I do not possess a formal legal agreement pertaining to this matter. However, I do possess WhatsApp messages and audio recordings in which Mr. Iqbal acknowledges his commitment to repay the borrowed amount once he obtains the necessary funds. (Along with all bank interests till date and one lakh profit)

Given the complexities of this situation, I am seeking your guidance on the potential legal avenues available to me. Your expert opinion and advice would be greatly appreciated in understanding the best course of action to resolve this matter.

Thank you very much for your time and consideration. I look forward to your response.

Sincerely,
MR A
Asked 10 months ago in Criminal Law
Religion: Muslim

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7 Answers

You need to file recovery suit and on basis of aforesaid evidence contest the suit 

Prashant Nayak
Advocate, Mumbai
31802 Answers
175 Consultations

4.1 on 5.0

Purchase of land by Iqbal in third party name amounts to benami transaction 

 

2) govt can recover such property without payment of any compensation to owners 

 

3) you can issue legal notice to Iqbal to repay loan amount with interest 

 

4) if he fails to do so file police complaint against him for cheating under section 420 of IPC 

 

5) you can also file suit to recover the balance amount 

 

6) rely upon what app messages exchanged with Iqbal 

Ajay Sethi
Advocate, Mumbai
94518 Answers
7485 Consultations

5.0 on 5.0

If you have the details o f the amount returned by Iqbal and the supporting evidence like whats app messages to confirm the loan borrowed from you, it is advisable that you issue a legal notice demanding him to return the balance amount with accrued interest.

Failing to comply with the demands made, you can lodge a criminal complaint aainst him with the local police.

In the absence of a loan agreement or the details for having given him the money directly, you cannot file a money suit to recover the amount.

Purchasing property on a third person's name is his problem, it is not going to solve your problem.

T Kalaiselvan
Advocate, Vellore
84711 Answers
2172 Consultations

5.0 on 5.0

Dear Sir,

Kindly prepare an agreement to that effect, an agreement need not however be registered. You can go forward with the drafting of the legal agreement now and the agreement should contain the terms and conditions with which you handed over the amount to Mr. Iqbal.

Under the Indian Contract Act, an agreement need not be written, it may be oral. The problem with oral agreement is that the burden is on you to prove that there existed an agreement between you and Mr. Iqbal. 

Kindly find the appropriate case law herewith. I have extracted the relevant segment from the Judgement. In the case of S.V. Narayanaswamy vs. Savithramma 2013R.F.A. No. 1163 of 2002 c/w R.F.A.No.1164 of 2002 Karnataka High Court, the Appellant sought to prove the existence of a oral agreement, which was vehemently claimed to exist, with respect to sale of property. With the onus to prove being on the Appellant, it did so, by producing cheques of several amounts, towards the entire consideration of the property. By producing various pieces of evidence, which indicated towards a whole, the court upheld the existence of the oral agreement, based on the scrutiny of the evidence provided.

 

Also, you could send a legal Notice u/s 138 of N.I. Act,1881 to Mr. Iqbal to clear the outstanding amount. 15 days from the date of Legal Notice, you will have to wait for this reply and after the expiry of 15 days, you go ahead and file a PCR, then after the lapse of 30 days cognizance will be taken and the PCR will be converted to a Criminal Case after recording of sworn statement. I can help you draft the legal notice and we would also move for specific performance of the oral agreement basing our contention on the above case law, under Specific Relief Act,1963.

 

Sanmathi S. Rao
Advocate, Bengaluru
44 Answers

5.0 on 5.0

Transaction is done in such a manner that you cannot hold iqbal for any recovery.

Its all happening Benami transaction. Whats chat has no evidentiary value.

Better execute agreement.

Yogendra Singh Rajawat
Advocate, Jaipur
22596 Answers
31 Consultations

4.4 on 5.0

- Since, you have transferred the amount in the account of Mohsin and not account of Iqbal , even for the use of Iqbal , and further as there is no agreement was executed between you and Iqbal , then you cannot recover the amount from Iqbal, even he has used the same. 

- Further, as he has returned some amount , and further given undertaking through whatsapp , then you can claim the refund of the friendly loan amount from him on this ground. 

- Further, the land which is in the name of Mohsim will not prove any allegation against Iqbal. 

- However, if Iqbal has used the Mohsin account for the said investment , then Mohsin can lodge a compliant against him before the police and higher official .

Mohammed Shahzad
Advocate, Delhi
13095 Answers
195 Consultations

5.0 on 5.0

Dear Mr. A,

 

Thank you for reaching out to me with your legal concerns. I understand the complexities of the situation you have described and will do my best to provide you with some guidance.

 

Based on the information you have provided, there are a few legal implications that can be considered:

 

Loan Agreement: Although you mentioned that there is no formal written agreement, the WhatsApp messages and audio recordings where Mr. Iqbal acknowledges his commitment to repay the borrowed amount, including the bank interest and profit, can serve as evidence of a verbal agreement. Verbal agreements can be legally binding, and these messages and recordings can be used to support your claim in case of a dispute.

 

Use of Another Individual's Bank Account: Mr. Iqbal's use of Mr. Mohsin's bank account without his knowledge or consent raises concerns. It could potentially involve fraudulent activities, and Mr. Mohsin should be made aware of the situation if he is not already. Mr. Mohsin may choose to take legal action against Mr. Iqbal for any unauthorized use of his bank account.

 

Property Sale and Fund Transfer: The purchase of land under Mr. Mohsin's name and subsequent sale of the property, with the funds being transferred into Mr. Iqbal's wife's account, raises questions about the legality of the transaction. This type of arrangement may be seen as an attempt to evade legal obligations or engage in fraudulent activities. It would be advisable to consult with a lawyer familiar with property and financial laws to further investigate this matter and determine the appropriate course of action.

 

Given the circumstances, I recommend that you consult with a local lawyer who specializes in financial and property law. They will be able to review the specific details of your case, examine the evidence you have, and provide you with tailored advice based on the laws and regulations applicable in your jurisdiction. They can guide you on the best legal avenues available to recover the remaining amount owed to you and address any potential illegal activities that have taken place.

 

Remember to gather and organize all relevant documents and evidence, such as bank statements, transaction records, and any other correspondence that supports your claims. This information will be valuable for your lawyer to assess the situation accurately.

 

I hope this initial guidance helps you understand the potential legal implications and the steps you can take. It is important to consult with a professional lawyer who can provide you with personalized advice based on your specific circumstances. They will be in the best position to guide you through the legal process.

 

Wishing you the best of luck in resolving this matter satisfactorily.

 

 

 

Anik Miu
Advocate, Bangalore
8742 Answers
109 Consultations

4.7 on 5.0

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