since he has acknowledeged his liability to repay the principal amount and has failed to pay inspuite of notice you can file suit to recover sum of Rs 23 lakhs with interest at the rate mentioned in the legal notice
Can I get interest on lended money to a relative.
Dear Sir, I lended money to a relative as he asked in an treatment. After that he asked more money and told me he will give land. I transfered around 23lakh rupies in multiple transections. There is no agreement for giving the land. Whenever I used to ask he use to tell me he will give the land. I made the paper ready for land registry and inform him but he did not come to registry office. Then I sent him notice through advocate to return my money with interest or register the land. In reply of the notice he refused that if there is any conversation for giving land, he has told he will only return the principle amount in simple Instalments. It is written in the notice that claiming interest without having lending licence is illegal. Also there is no time line of returning money. What should I do. Kindly advice.
Asked 11 hours ago in Property Law
Religion: Hindu
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3 Answers
If you have demanded return of the loan amount with interest and if has acknowledged the receipt of the loan amount, then there's no necessity to panic about his reply notice.
It is usual and common that the lawyer will deny the averments made in the legal notice through their reply notice.
You can proceed to file a money recovery suit to recover the principal and interest amount through court.
In the meantime you can file a petition along with the suit to attach the property on his name for the purpose of security to the suit amount by getting an order for attachment of his property before judgment.
You can discuss with your advocate and proceed as suggested.
Dear Sir/Madam,
Yes, you can file a money-recovery suit for ₹23 lakh and also claim reasonable interest. The objection regarding a money-lending licence is generally not applicable to a one-time friendly loan to a relative, unless you regularly conduct money-lending business.
His written reply admitting liability for the principal amount, along with your bank-transfer records and legal notice, is important evidence. However, without a written agreement for sale, compelling him to register the land may be difficult.
File the recovery suit promptly, as limitation must be calculated separately from the dates of payment and any valid written acknowledgment.
Advocate Saurabh Agrawal
