Your best remedy would be to issue a legal notice asking him to repay the money together with outstanding interest, give him 07 days time to do this from date of receipt, if he fails to refund the amounts, file a suit for recovery of money against him without further delay.

Dear Querist

He has no right to file any case against you but this is only the threat to not to pay the money borrowed by him by your father.

there is any license regarding the money landing on interest in the name of your father issued by the Govt. Department if not then a case under Money laundering can be filed against your father.

Feel Free to Call for further assistance

1. The promissory note is sufficient to prove the liability of the borrower. Your father should file a lawsuit for recovery of money with interest in the civil court against the borrower.

2. He has no legal basis to send a legal notice to you, but people do forge and fabricate documents to stand on their feet in the court, so wait and watch.

1. Your father without money lending business can not accept interest in lieu of money lent.

2. The borrower seems to have known this legal facts now and hence threatening of legal steps.

3. You should have drafted the promissory note in some other manner to protect your interest.

1. On what basis he can send a court notice since he is the one who has defaulted against the commitment?

On your persistent demand, he is threatening you with some false allegations, dont be scared by his false threats, he is trying to divert you by making such calls.

2. What are the legal options available to us to recover our money?

You can file a money recovery suit by first issuing him a legal demand notice and after a stipulated time, you may proceed with the court case.for recovery of money.

if you have no money lending license then he can file case for stay the recovery of money and removing interest on the money. But you should not be afraid because he given a promissory note then no money lender license is necessary in execution of that Instrument.

In M/s Prakash Jewellers v. M/s A. K. Jewellers AIR 2002 court is held that there is no need of money lending license for filing complaint u/s 138 of the Act.

you may file complaint under section 138 NI Act for default of honour of instrument. and execute that instrument.

1. You can not give any amount on loan against interest without permission/license from RBI,

2. Probably he wants to take advantage of the said legal point,

3. File a Recovery suit against him claiming the refund of the lent amount with interest, damage and cost.