Actions to get back the borrowed amount
Arun kumar
(Querist) 09 August 2018
This query is : Resolved
hai experts,
i have given a loan of 5L to a person for investing in his business. he assured me 7.5 L after 4 months and given promissary notes and post dated cheques.But after the time he asked for more time and made new promissary notes and cheques with 9lakh. but after that time also he didnt pay me off. Now that cheque also got expired and he gave new cheques but old promissary notes only...when i went to submit it ,the bank guys said no money. now that also going to expire...its been 1.5 years since i gave money. now he asking more time.. what should i do... submit the cheques in another bank,and let the cheque bounce and go case against him or wait till he gave money....what steps i can take to protect my side..please advice
Sudhir Kumar, Advocate
(Expert) 09 August 2018
Money given to friends and relatives is always a charity in the garb of loan which is given in expectation of refund but always taken with intention of non-refund.
Such loan is taken by a person:-
(i) Who lacks business sense and cannot raise funds out of his own business and suddenly wants to be rich.
(ii) who cannot raise bank loan because :-
Either
he himself is not creditworthy
Or
the purpose for which he seeks loan is illegal
or
the purpose for which he seeks loan is not at all commercially viable.
(iii) Who knows he can afford not to refund.
(iv) Who trusts his thick skin
(v) Who intends not to refund
(vi) Who has made fortification against action of refund.
So he has to find someone who can part with his money. So he finds a lender near him (friend or relative)
Such loans are given by the persons :-
(i) Who has surplus money.
(ii) Who displays and boasts of such surplus money.
(iii) Who stupidly believe that there will be a refund.
(iv) Fails to realise as to why he alone (not bank) is being contacted for loan.
(v) Who has extreme trust on the debtor
(vi) who are either stupid or extremely greedy of the unusual (or illegal) rate of interest.
Such loans are always given
(i) Without documentation.
(ii) Without witness
(iii) Without guarantor.
(iv) During cordial relations
Soon after giving such loan :-
(a) Relations are no more remain cordial
(b) Business started by such money (easy money belonging to other) invariably fails.
(c) Such loans always sink and not refunded.
(d) Person seeking such refund suffers at legal process.
(e) Person seeking such refund legally or by persuasion is socially criticised.
