1) you have to file suit to recover money within period of 3 years of loan advanced or last payment made by him
2) your claim for recovery of money advanced is barred by limitation
3) file police complaint of cheating against borrower
Debt recovery
My father has given money to a person in 2009 but the person didn't repay the debt but he rewrite the promisory notes.the rate of interest is 18% per year.we are irritated by his answers for repayment.he asked us to come on some date and he tells some story.he is wealthy person and has more than 12 acres land and some other property also.not only us there are some other people who are cheated by him.he buy a new plot and shifted to it.we are in a great need of money.what would you suggest to recover our debt.
Asked 8 years ago in Civil Law
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4 Answers
Since the loan is a secured loan through execution of promissory notes your father can file a suit for recovery of money in the civil court. The suggestion would be thus be to file a suit for recovery of money against him.
You first issue a legal demand notice demanding the repayment of loan amount along with the interest accrued thereon giving him seven days time to comply with your demand.
If he fails to comply or respond then you may file a money recovery suit against him before an appropriate civil court and seek relief accordingly.
Dont worry about his affluence, all are equal before law
1. Your father can not lend money for earning interest for which he shall have to avail license from RBI. He can not also charge interest at a rate more than what has been prescribed by RBI. However, he can state that he has given money to his friend during his need who assured to return him the said money with bank interest rate. To legalise such money lending transaction without license, your father should have written higher amount as loan amount to be paid after one year with 8% interest rate and availed a post dated cheque for he said amount. It was also necessary for your father to take a letter from him mentioning that he has issued the said cheque to your father towards repayment of the loan amount to ensure that he can not state later on that his cheque for the said amount has been stolen or lost from him,
2. Your father can now file a Money suit claiming refund of the promissed money before the Civil Court along with interest, damage and cost.
