• Borrower not repaying the money

Hi, 
My father had lent an amount of 1lakh to person who is know to him three years back for a interest which is to be paid on monthly basis. We have a promissory note signed by him. Since last 8 months the borrower has stopped paying the interest and recently he has told us that we will be getting a court notice. 
1. On what basis he can send a court notice since he is the one who has defaulted against the commitment?
2. What are the legal options available to us to recover our money?
Asked 1 year ago in Criminal Law from Hyderabad, Telangana
Religion: Hindu
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.
Kiran N. Murthy
Advocate, Bangalore
766 Answers
52 Consultations
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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
Nadeem Qureshi
Advocate, New Delhi
3537 Answers
131 Consultations
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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. 
Ashish Davessar
Advocate, Jaipur
18264 Answers
450 Consultations
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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.
Devajyoti Barman
Advocate, Kolkata
5248 Answers
54 Consultations
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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. 
T Kalaiselvan
Advocate, Vellore
14170 Answers
128 Consultations
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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. 
Shivendra Pratap Singh
Advocate, Lucknow
2797 Answers
41 Consultations
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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.
Krishna Kishore Ganguly
Advocate, Kolkata
12143 Answers
233 Consultations
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