Debt recovery with pronote and cheque, possible in a short time?
Sir, I had given 15 lacs on loan with an interest rate of 3 %. The person was paying interest every month for 2 yrs now he is not returning the capital nor he is paying the interest agreed. He has given pronote and multiple cheques.
Please advise if there can be speedy resolution if I go to court based on his pronote and cheques. I was told by my cousin that it would take long 2-3 yrs for resolution. Kindly advise on what steps I can take.
Asked in Civil Law from Bangalore, Karnataka
1. If you are a licenced moneylender then you can proceed against the defaulter legally.
2. If you are not a licenced moneylender then use his cheque and submit the same to your bank and if it bounces for insufficient funds, take action against him U/S.138 of Negotiable Instruments Act.
The cheques should be presented to the bank, and if they are dishonoured, a criminal prosecution for cheque bounce can be launched against him. This apart, a suit for recovery of money can also be filed against him as he has given pronote. It may take less than 3 years as you possess pronote. Issue him a lawyer's notice to see if it works.
If he is not paying the interest or not repaying the principal amount, you may first issue a legal demand notice instructing him to comply with your demand, failing which you can initiate proper legal action against him through both civil and criminal laws.
No doubt the court case will take time but you cannot remain idle if he is not repaying you the loan amount.
If you are a licencee for lending money then you may take legal action against him before civil or criminal court otherwise you may also be prosecuted under money laundering act.
Secondly based on pronote and cheques you may file a civil suit for recovery before civil court under order 37 of CPC in which the matter will be decide in 6 month.
You may present the cheques for encashment and if dis honour then file criminal complaint against him undet section 138 of n.i.act.
Feel free to call
Advocate, New Delhi
do you have money lender license?
2) have you give loans to others too ?
3) are you in business of money lending?
4) you can deposit the cheques . if these cheques bounce on presentation issue legal notice
5)if accused does not pay file complaint under section 138 NI for dishonour of cheque
6) also file summary suit for recovery of money