Farahan Riaz (None) 13 November 2017

Loan to friend without any paperwork.

I have two clients A and B having same friend C.

A loaned Rs. 5 lakh to C through bank transfer and now C has been missing. B also loaned Rs. 10 Lakh to C but by cash.

Since C has been missing. What kind of case there can be since no paperwork involved in both cases with C?

Also note there are many witnesses who can testify that C has loaned some amount from A and B.

Also A and B was taking interest @3% per month. ( I know, that much amount of Interest is illegal and A and B hasn't have any license for taking interest )

If it's possible, please suggest some cases (judgements) for this scenario.

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3 Replies

rahul abhyankar (advocate) 13 November 2017

no documents and no security.

A trf through check. so can initiate proceedings under CPC,

b has no remedy .he can file cheating case if possible and accepted by the police.

(Guest)

Even if somehow court catches him. He will tell he will give 100 rs per date. To collect that 100 rs you will have to spend 200 rs on petrol to go to court per date plus lawyer expenses.

Without any document it is almost impossible to nail such people.

Plus long time to recover.

If you have some photo of his, search for him. If you catch him, take him to your house and make him wash your toilet, floors, vessesl for next 5 years. You look like un registered ffinanciar, you can think of other ways to get him do your chores. Although such will also be illegal.

Court is no useful in your case.

G.L.N. Prasad (Retired employee.) 14 November 2017

There is no possibility of such recovery, when there are no documents, and advancing without licence for such abnormal interest. Contact local Advocate, who can assure you such recovery, though the chances are bleak. You can with his advice file a criminal complaint that you have asked him to bring cash as a friend but he has committed breach of trust, and cheated you by taking away the money. File RTI Application to Bank and get the certified copy of such Cheque given by you on both sides, and never inform or state about charging of interest.