Money suit

hage nibo (Querist) 20 November 2011 This query is : Resolved
Respected Sir,

I lent an amount of rs.10,00000/- @ 10% per month to a person to be returned within 6 months.Although he has repaid me 100000/- as an interest 3-4 months back.
Now the person is not going to pay me back any thing. The money receipt he has given me is an unregistered; merely affixing a revenue stamp of 20 paisa.
Kindly suggest to and fro of the case if suited.
I shall be thankful if a case decided of such similar case is cited to me, whether in favour or against me.

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ajay sethi (Expert) 20 November 2011
when you lent Rs. 10 lakhs was any document executed wherein he agreed to pay interesr at 10%per month

since he has repaid the principal amount already your claim for interest will only if you have any document signed by him agreeing to pay 10%per annum .

the interest claimed by you is exhorbitant and interest rate usurious

was money advanced by cheque or cash?

Nadeem Qureshi (Expert) 20 November 2011
Mr. Ajay is right

Kiran Kumar (Expert) 20 November 2011
the fact to be seen is whether there was any documentation done in this regard....if it was all oral whether the oral agreement could be proved.

if the dispute is of Interest only then certainly exorbitant interest can not be charged....but 10% does not seem to be exorbitant.

Rajeev Kumar (Expert) 20 November 2011
I agree with experts

ajay sethi (Expert) 20 November 2011
kiran kumar it is not 10%per annum but 10%^per month

Guest (Expert) 20 November 2011
you can not claim such amount if you don't have the documentary proof.

hage nibo (Querist) 20 November 2011
The amount I received is one lakh only as an interest.Documentary proof only being the receipt of the amount,in which lone guarantor is his wife.
my main apprehension is whether the receipt he has given being unregistered can be used as a valid document in legal terms.
please suggest not only for my side; but in favour of his side also, so that I could grasp some ideas.
I shall be thankful, if such kind of ruling be cited to me.

prabhakar singh (Expert) 21 November 2011
yes, i do agree experts query reply

M V Gupta (Expert) 21 November 2011
You have not stated what is exactly written in the receipt. A guarantee for the loan requires to be stamped as per the local stamp Act; not a revenue stamp. therefore whatever the borrower's wife has given as guarantee cannot be enforced through court. If the receipt does not mention that the amount was received by way of loan, it is possible for the borrower to take a stand that the amount was paid to him by way of discharge of amounts due to him. As regards interest @10% per month is absolutely usurious i.e., exploitative and courts would not allow such rate. On the whole the transaction is not properly documented.

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