• Money lent to relative in distress

I am from Delhi and work abroad and maintain a NRI account with a Bank in Gurgaon ( Haryana) under NCR. One of my relatives living in Chennai was in distress after conducting his daughter's marriage and sought a short term loan from me.  I transferred him the money from my NRI account to his account in another Bank in Chennai. The recipient had assured me that he would return back the money within 3 months. Due to relationship, I did not seek any other guarantee instruments or Promissory note.  Now it is nearing 3 years and that he has no intention to repay.  After some months of my lending, he had answered my phone calls in 2 occasions to seek more time to refund. As of now, he completely avoid my phone calls and does not even reply to SMS messages to return my money.  Recently I sent a registered letter demanding immediate refund of my money failing which I will seek legal action to recover my money.  He has  received the letter and has not bothered to reply or return my money. 

Due to my work abroad, I visit my home in Delhi only once in a year.  Anticipating breach of trust from the relative borrower,  I have given (1 )an authorisation letter to my father in this regard and (2) A blank 'Vakalatnama ' duly signed to engage an advocate  to resort to legal steps to recover the money.    
Now that I live abroad due to my work ( with a Foreign address ) and an Indian permanent address in Delhi, and my NRI Bank account in Gurgaon ( Haryana ) 

Kindly advice me the next course of action that I should take through my father in Delhi.
1.  Through which court should I file a petition.
2.  This is a breach of trust. Does this come under Civil or Criminal offence. 
3.  Should I lodge any complaint with the Police before I approach an advocate ?
Asked 3 years ago in Criminal Law from New Delhi, Delhi
1. As per your statement of facts, 3 years are soon going to elapse as from the date on which you lent the money to him. If you wish to recover the money from this relative of yours then act  swiftly as time limit laid down under the law to file a case for recovery of money is 3 years. 

2. Since you did not enter into an agreement while advancing the loan the only proof which you can produce in the court is the passbook wherein the entry of amount advanced to him is reflected.

3. The proceedings can be initiated in the civil court at Delhi.

4. You can prosecute your relative both under the civil and criminal law. In addition to filing a case for recovery of amount you may also file a case for cheating and breach of trust against him. 

5. There is no need to lodge any complaint with the police. Concentrate on recovering the amount through the civil court as you are on the verge of exhausting the time limit to file the case, whereafter your legal remedy will be foreclosed.
Ashish Davessar
Advocate, Jaipur
22977 Answers
634 Consultations

5.0 on 5.0

A person can give loan without interest to his near and dear. No stamp, registered document or witness is require to prove that money transaction was a loan. You can file civil or criminal proceeding for recovery of money. civil proceeding shall take more time and also more expensive because court fee is applicable in proportionate to money claimed for recovery and it is pre-condition in civil suit.

you should initiate a criminal proceeding for the offence punishable under section 403/406/504/506 IPC. Criminal proceeding is more swift than civil proceeding . Your father can register an FIR in the nearest police station and he can represent you in throughout the proceeding before the court.
Shivendra Pratap Singh
Advocate, Lucknow
5066 Answers
78 Consultations

4.9 on 5.0

Yes you can initiate legal action against the the borrower and it must be done immediately. Engage a lawyer and send a legal notice to the errant relative demanding the return of money .If he fails to comply with the demand your counsel will guide you with the right course of action in initiating either civil or criminal case against the relative 
Your father can of course represent you in his capacity as POA in all proceedings before the courts.
S J Mathew
Advocate, Mumbai
2240 Answers
110 Consultations

5.0 on 5.0

Your father can file suit for recovery of money on your behalf through the Power of Attorney executed by you in his favour as I think you have done so. Suit can be filed in Delhi court.Please do it fast as the time limit for filing suit is three years from the date of lending money. Before that a legal notice of demand through a lawyer is to be served upon your relative. You are to recover the money so civil proceedings would be better because  by criminal proceedings he can be punished but no recovery of money. Bank transaction, registered letter which you served upon him would be used as proof of lending money besides any other documents,messages etc if you have.So move quickly.
S.P. Srivastava
Advocate, New Delhi
703 Answers
13 Consultations

4.7 on 5.0

1. File a recovery suit before it becomes time barred,

2. The said suit shall have to be filed before Civil Court at Delhi,

3. You can also file criminal case alleging cheating and breach of trust,

4. Act fast.
Krishna Kishore Ganguly
Advocate, Kolkata
18433 Answers
448 Consultations

5.0 on 5.0

Dear Querist
My opinion on your queries are as under:

1.  Through which court should I file a petition.
Opinion: Delhi Court has also jurisdiction for filing civil suit against him.

2.  This is a breach of trust. Does this come under Civil or Criminal offence. 
Opinion: You can file both the cases, civil as well as criminal.

3.  Should I lodge any complaint with the Police before I approach an advocate ?
Opinion: Yes, you may file a police complaint u/s 406 of IPC against him.
Nadeem Qureshi
Advocate, New Delhi
4856 Answers
221 Consultations

4.9 on 5.0

Avdhesh Chaudhary
Advocate, Greater Noida
565 Answers
20 Consultations

4.6 on 5.0

you can send a legal notice through an advocate mentioning the lending of money to your relative and for returning of same also you can file suit before the limitation period comes into action, you can approach court in criminal breach of trust against your relative
Brijendra Kumar Vishwakarma
Advocate, Kanpur
117 Answers

4.5 on 5.0

Issue a legal notice for getting back the amount and then file a suit for recovering the amount. Lodge a police complaint
Jeshma Mohandas KP
Advocate, Kozhikode
567 Answers
1 Consultation

4.5 on 5.0

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