Refusing to pay back lent money

Srinath Shekran (Querist) 07 February 2014 This query is : Resolved
Plz help
I had given my wife's brother an amount of Rs 8 lakhs over a period of 1 year to help him start a business in the year 2011.

All the amount was transferred online from my bank account to my brother-in-law's bank account in which my wife was a joint holder.
Since it my wife's brother I had not taken any assurance/cheque or any written conformation from him for the said amount except my bank statement showing the transfer.

He had promised me to return the money within 1 year.However it has been two years now and he is refusing to return the money he owes me.

My wife too had persuaded him but he has stopped meeting or taking her calls too.
What are my legal options as I am need of my hard earned money right now.

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Sudhir Kumar, Advocate (Expert) 07 February 2014
money lent to sibling/cousin/uncle/aunt/niece/nephew of self and spouse is charity only and is never returned. Even is there is a written deed.

better forget.

Rajendra K Goyal (Expert) 07 February 2014
You have no solid proof that money was given as loan and was to be returned in specified time.

You can file suit for recovery. It will cost your some thousands as court fee + lawyers fee + execution + time and loss of peace(Case may take 4-5 years in decision with uncertainty of success). If the person is having no property in his name even after obtaining a decree the decree would not recover any amount. You will loose your money and will loose the relation also.

Better keep mum at present and lodge your claim when the time come, when he is in a better position to return your money.

ajay sethi (Expert) 07 February 2014
you can take legal proceedings against your brother in law since amount involved is RS 8 lakhs .you have to take legal proceedings in next one year or claim would be barred by limitation

issue legal notice and file suit .however it may strain your relations with your wife

Srinath Shekran (Querist) 07 February 2014
The money was given in parts of Rs 50000 to Rs 100000.
It was given from my bank account to my brother-in-laws bank account. Is this not proof enough.

To the best of my knowledge my so called brother-in-law has a plot of land in his name.

Also my wife's brother has never filed till date his ITR and the given amount is a loan and if not loan then how can he prove it is his income since he has really no source of income.

My question is what are the chances of success if I file a suit for recovery.

By the way I have already lost my peace of mind and my wife too has severed relations with her brother.Hence advice on a suitable legal recourse beneficial to my family is greatly appreciated.

ajay sethi (Expert) 07 February 2014
you need some documentary evidence in support that money advanced was loan and not gift . did you address any correspondence to your brother in law for repayment of loan . did he reply .

if you have not done so do so now . contact a local lawyer and get letter drafted by him . send by regd post Ad . you can also send by email

Sudhir Kumar, Advocate (Expert) 08 February 2014
Agreeing with Mr Rajender K Goyal I will reiterate that you have to forget the money whether with/without become heart patient.

Advocate. Arunagiri (Expert) 08 February 2014
You can claim all the money, which was given within three years, from the date of filing the suit.

You have to establish that the money was given as loan.

Sudhir Kumar, Advocate (Expert) 08 February 2014
You can claim but won'nt get.

Sudhir Kumar, Advocate (Expert) 08 February 2014
you gave the money in charity and if he returns it will behis charity.

Guest (Expert) 08 February 2014
Did you get any letter in writing where the borrower would have requested you to send money?

Srinath Shekran (Querist) 08 February 2014
Sudhir
I see you are really enjoying yourself at the cost of my misery.
Anyway I would appreciate if we could keep this forum with logical responses as suggested by other experts.
Thanks

Srinath Shekran (Querist) 08 February 2014
Arunagiri Sir
How do I establish as this money was given as a loan as there is no such agreement in writing

ajay sethi (Expert) 08 February 2014
send letters to him that loan was advanced by registered post . if he dosent respond good for you .you have to build a case

Rajendra K Goyal (Expert) 08 February 2014
Dear Author,
Sudhir Kumar ji is telling the reality, you may not be in a position to realize it at present but would realize it after spending more few thousands and passing of few years.

Guest (Expert) 08 February 2014
Try to create some evidence somehow or the other about his having got loan from you for his business.

krishna mohan (Expert) 10 February 2014
If you are convinced to have a legal battle without wasting time consult a local lawyer to issue a legal notice by duly taking reference to your on line account transfer by citing the proposal made by him during your meeting for running business and failure to repay back. Only point you have not made clear is without having any formal agreement or understanding and witnessing progress in business how did you continually transfer money. Depending upon his response you may proceed further.

Refusing to pay back lent money

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