Loan taken from my friend without any legal agreement
I have taken a loan of 2 lacs from my friend and promised him i will pay him interest of 3%. I have paid him 1 lac with interest. I was in UK for my higher education and because of money problem i returned without completing my education. I have to pay him rest 1 lac of which i have paid 30000 and 25000 in total 55000. I told him i can't pay interest as i don't have money and said him that i will pay remaining 45000 by next month. After the miserable failure of my studies and returning to india i never went to my home staying in bangalore. My friend is repeatedly calling my parents and asking them to pay with interest. I am worried he may create some problem to my parents. Please advise me what to do. I told him repeatedly that don't call my parents i am arranging money i will give it to him and they have nothing to do with it. But he is sending some people to my home and creating problems. I am presently in bangalore and i am basically from telangana (andhra pradesh). i am now seperated from my family and we don't have any relation after my return to india.
Asked in Civil Law from Bangalore, Karnataka
You may inform your friend hat since you are in great crisis you will not be able to pay the balance loan amount immediately and shall pay it sooner or later and ask him to remain silent until then.
Your friend will certainly not listen to your words because he has lost his faith in you and lost hopes of recovering the money in the normal way hence he will once again resort to the same illegal measure by sending people to your parents house, threatening them etc.
In such repetition, you should lodge a police complaint or issue a legal notice to your friend warning him of th legal consequences if he is once again indulging in such illegal activities.
But in legal notice, you should not commit to repay the loan amount. You should mention that his activities are totally unjustified and he is doing them without any reason of some false claims without any basis.
This legal notice or police complaint shall make him to think about the seriousness of the issue and he may come down to negotiations.
At any circumstance never commit to have borrowed any money from him any time nor have repaid the partial amount to his which is a fact.
Since he is not having any evidence to prove his claim, he may not be able to recover the same legally.
I have already informed him about my crises. I am not living in telangana state (my home town). I am living in karnataka. I went to police station in karnataka (Bangalore) last night they said lodge complaint in telangana. My friend is presently not living in india he is in US and he is sending some of his relatives and friends to my home. I have sent and email to ASP about the same as below. will this create a problem for me if i issue legal notice to him and the people who are involved in this. I am worried that my parents may face problem.
My name is Mohammed Khasim, I am a native of Bhadrachalam, Khammam, Telangana - 507111. I lived with my parents there at # 15-1-27/2, seetha raam nagar, Bhadrachalam.
In 2014 I went to UK for my higher education, and i fall short of some money and took 2 lakhs from my friend Ravi Nasu then resident of Bhadrachalam near government hospital, near to bikkumalla rice mill, now he moved to US. I have repaid him 1 lakh 55 thousand. Need to repay 45 thousand. As i fell short of money i returned to India in September 2015 and have no contact with my parents and residing in Bangalore.
I don't have a regular job, I am trying to repay the remaining amount to my friend Ravi Nasu, but he is claiming interest and threatening that he will go to my parents and send some people and create problem to them. I am worried that he may create some problem to my parents and family.
I am trying to repay the remaining amount 45 thousand to them by next month. As he started texting me over facebook that he will send people to my home and create trouble. I am worried. In this regard I tried contacting the Bhadrachalam police over phone, they shouted at me saying is this the time to call as I called them at 1:00 AM 14th Feb 2016.
Please Sir, I need your help sir. please help me in this regard. I am sending you the messages sent by my friend Ravi Nasu and attaching the details of payments i made to him. Please protect my parents and family.
I have paid RAvi Nasu 1,06,000 and 30,000 and 25,000 last month. by next month i ll pay him rest 45,000. he is demanding 93,000 from me which i cant pay. i dont want to have any relation with my parents as because of me they have to face all these. please sir help me. i will pay him next month i mtrying to convience him but he is reluctant to send people to my house in bhadrachalam and create problem to them.
Asked 1 year ago
1) there is no written agreement to pay interest .
2) your friend cannot insist on payment of interest .
3) at most he can file suit for recovery of balance principal amount
4) if your friend harasses your parents they can file complaint of criminal intimidation under section 506 of IPC against him
You should not have committed about the legally liable debt and your liability towards it.
Now since you have done it, you may have to look for some ways to rectify the same.
Actually as per law even your friend is not entitled to visit yor parents or others for your loan liability. If at all he has anything to claim, he can do so by adopting the legal steps only.
He cannot ask his relatives to visit your house demanding money from your parents.
Next time when somebody arrives at your house in this regard, collect their particulars and issue them a legal notice warning them from indulging into such illegal act and advise them to restrain from doing so lest they may be booked for the offences of criminal intimidation and threat calls.
Why did you call police at midnight 1 AM. You should avoid doing such over enthusiastic activities.
1. Your friend can not lend you money against interest @3% per month or at any other rate with out the permission of RBI,
2. You can return him the amount you had taken from him,
3. He acn not try to recover the amount without due process of law and under no circumstances can disturb your parents,
4. Let your father file a police complaint against him for torturing them for no legal reason.
1. Do not make matters complicated,
2. You shall have to lodge the police complaint at Bhadrachalam where your parents live since Bhadrachalam police station has the jurisdiction on the area where the incidence occurred to take action in this regard,
3. Bangalore police has no jurisdiction in investigate in the matter which took place at bhadrachalam,
4. it is also a fact that AM is not perhaps the ideal time to lodge such police complaint,
5. Send a complaint bto the Bhadrachalam police station by speed post under copy to the SP of Bhadrachalam and collect the delivery report from the internet,
6. If police fails to take any action, you can file Writ Petition before Telengana High Court against police for its inaction.
Your friend cannot get interest upon the loan because he has no banker license. If he demands so he commits offence under Merchant Bankers Regulations, 1992. But he can get interest u/s 34 CPC on the remaining amount @ 6% till the date of payment if he files recovery of money suit. So take some time for repayment and settle this issue mutually consent. He has right to recover his money.
1. This is a personal liability of the borrower, for which his parents cannot be made liable. So your parents can file a police complaint for criminal intimidation against the lender and men who come to their house. You cannot lodge the complaint on behalf of your parents.
2. Your complaint will not be acted upon as it ought to have been filed by your parents. So tell your parents to lodge the complaint in the nearest police station.