My friend isn't returning my money back for 2.5 years
On 19th March 2014, I loaned my childhood friend a sum of 19.5 lakhs. I gave him an account payee cheque for the same amount and also got it in writing on a 100/- stamp paper. He said needed the money for only two weeks, on stamp paper it's mentioned as 2months in good faith and at no interest.
I got that money after I sold a litigated property (for 35 lakhs) after several traumatic years of struggle, quarrels and fights with several people.
I had to close my loans with that money and reinvest in another pre-selected property(400Sqyrds @6,000/-/Sqyrd) for my family's welfare. The same friend was to negotiate on price of the new property but since he didn't return my money back till date, I could neither settle my loans another buy that property which is now 16000/- per Sqyrd.
He always promises me and my 66yrs old mother that he will return in a week or 10 days.
He seems to have invested my money, others money and also some bank loan, into a huge project(Poultry farm) worth a couple of Cores but didn't start generating revenues yet and may take 3-4 more months.
We've gone through a lot of pain and on all occasions he promises to repay with 3% interest since I was paying my loans and credit cards that ranged the interests from 16.5% to 42.5%(credit cards). Also, promises to buy me that land bearing all the cost difference (10,000/- per yard)
All are just words but nothing received so far.
My life and marriage(missed several prospects as I can't afford, which he knows and ditched returning promised money once for the engagement only), got jeopardized.
My mother has undergone severe stress and got diabetic(high sugar levels 360/530) in July 2014 after my friends behavior..
I lost all my patience and seeking a legal advise. Please advice.
Asked in Criminal Law from Hyderabad, Telangana
1) issue legal notice to your friend to repay sum of Rs 19.5 lakhs advanced by you with interest at rate specified in agreement
2) if he fails to pay file summary suit under Order XXXVII of CPC
3) also file police complaint of cheating , criminal breach of trust against friend
One should never help another when he has not enough finalcial strength.
You should not give so much of money when with that money you had more important things to settle.
Now your friend does not appear to be in position to repay money soon.
Give him an ultimatum for few more days/weeks.
If he fails then file civil suit for recovery of money.
Alternatively file criminal case of cheating as well.
On the basis of the loan papers he has executed in your favor and with the evidence of the money lent to him through bank transactions, you may first issue a legal demand notice instructing him to return the money he borrowed.
On his failure to return the borrowed money or comply with the demand made in the notice within the time stipulated in the legal notice, you may initiate a money recovery suit against him through a civil court immediately.
Since the three years limitation period is running out of your hands, it is better to initiate legal process immediately.
On receipt of legal notice he may request and beg you to not to go ahead with the legal action and would assure you that he will repay the amount in instalments, but you should not believe his words again.
He will somehow drag on the time and would make your claim barred by limitation, then you would lose your entire amount.
Besides civil money recovery suit, you can even lodge a criminal complaint with the economic offences wing of your district police, who will tighten the noose by which he will rush to clear the loan amount a least to some substantial extent.
Issue a lawyer's notice to him to repay the loan in accordance with the agreement executed on the stamp paper, and file a suit for recovery of money in the civil court if he does not pay back within a month.
You have to file money recovery case against your friend who received amount from you. You have take steps for filing suit immediately, because the limitation for any money lent under money bond is three years from its execution and after three years you can't claim any amount under same money bond. The last date for filing a recovery suit is 18.03.2017. Since you were paid money through account payee cheque and you also got executed money bond dt. 19.03.2014 on Rs.100/- non judicial stamp paper so you will definitely succeed in the case . First of all you have to send a notice to borrower calling upon him for payment of principle amount along with interest as mentioned in money bond, if, he came forward by paying amount then its ok, but don't take any chance on further assurances because said money bond will expires within 3 years from its execution. if in case any part amount paid by said borrower you have to mention same as so and so part amount received and have to obtain his signature, and in that case the limitation again starts from the date when any part payment made. You can also seek attachment of movable belonging to borrower by filing a attachment judgment petition at the time of filing recovery suit.