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 

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

based on the facts, you should consider instituting a civil suit for recovery of money and, if the evidence indicates that the relative never intended to honour his assurances and induced the client to part with the money through false representations, explore the possibility of initiating appropriate criminal proceedings for cheating and criminal breach of trust, subject to the evidence available.

Dear Client, The relatives argument that you cannot claim in trust without a money lending license is a common defense but it is often misleading in India the Moneylenders Act is generally intended to regulate professional moneylenders who make a business out of lending It does not usually bar a private individual from claiming interest on a one time friendly loan or an advance payment Since you have a record of transferring a substantial amount of 23 lakhs you have strong evidence of a debt his refusal to register the land combined with his written admission in the notice reply that he owes you the principal amount is a powerful acknowledgement of his liability this admission can be used in court as evidence to prove that the money was indeed a loan or an advance not a gift.

To recover your funds you should immediately file a summary suite for recovery under Order 37 of the Code of Civil Procedure 19 08 A summary suit is a faster legal process specifically designed for cases involving liquidated claims such as the recovery of money where there is a clear documentary evidence like bank transfer records By filing this you shift the burden to your relative to provide a valid legal defense for why he should not be ordered to pay you back immediately Because he has already admitted to owing you the principle in his reply notice he will find it very difficult to deny the debt before a judge.

Do not wait for him to voluntarily provide an instalment plan as his current stance lacks a firm timeline and suggests an attempt to delay payment indefinitely Since he has already shown he is unreliable by failing to appear at the registry office you should move for an order of attachment before judgment This is a powerful legal step that allows the court to temporarily freeze his assets including the very land he promised you to ensure he does not sell or transfer it to someone else while your lawsuit is pending. I hope this answer helps, if you have any further query kindly do not hesitate to contact us. Thankyou

In above case you can’t legally claim it but if it’s mutual understanding you can do the same 

Dear Sir/Madam,

You are suggested to file the suit for recovery against him but you may not claim the interest from him. 

Based on the facts you've presented, your relative's claim that you cannot charge interest without a "lending licence" is not entirely accurate. While state-level Money Lenders Acts require a licence for the business of money lending, a one-time loan to a relative is generally not considered a business activity. Indian law does not prohibit private individuals from charging interest on personal loans, and courts often allow reasonable interest, especially when there has been a clear agreement. In the event of a dispute, a court may award interest at a rate it deems just, typically up to 18% per annum as a benchmark for private loans.

Regarding the promise of land, an oral agreement for the sale of immovable property is legally valid under the Indian Contract Act. However, enforcing such an agreement is difficult. A court cannot force the transfer of land based solely on an oral promise; a registered sale deed is the definitive proof of transfer.

Your strongest legal recourse is to file a civil suit for the recovery of the principal amount, along with a claim for interest. The limitation period for filing such a suit is three years from the date the loan became due. Since your relative has not specified a repayment timeline, the cause of action likely arose when you formally demanded repayment via the legal notice. Your advocate can also argue that the money was given on the condition of receiving land; since that condition failed, the money must be returned with interest. For a matter of ₹23 lakhs, this suit would be filed in the appropriate civil court in your jurisdiction. Your lawyer can explore the possibility of filing a summary suit under Order 37 of the CPC if there is any written acknowledgment of the debt, which would be a faster process.