legal status in eyes of law
swetha
(Querist) 02 May 2014
This query is : Resolved
sir,
my cousin have given loan to his friend and asked him to give a promissory note but instead of promissory note his friend has prepared a memorandum of understanding and settlement deed stating in case of default my cousin can take an civil and criminal action against him.. I wanted to know what is the legal status of that document... I mean in case of default can my cousin take both civil and criminal action against him..
Sudhir Kumar, Advocate
(Expert) 02 May 2014
prepare any appear such loans are not meant or intended to be repayed.
Devajyoti Barman
(Expert) 02 May 2014
without going through the deed it is difficult to advise.
ajay sethi
(Expert) 02 May 2014
giving loan to friends is not a prudent step . these days so many banks offer loans . if you have given loan and your friend fails to repay forget about the loan . it would ruin your friendship if you take recovery proceedings
swetha
(Querist) 02 May 2014
I just wanted to know incase of default in repayment , what r legal steps he can take, or its better prepare a promissory note...
swetha
(Querist) 02 May 2014
I just wanted to know incase of default in repayment , what r legal steps he can take, or its better prepare a promissory note...
malipeddi jaggarao
(Expert) 02 May 2014
MOU will documents the duties and responsibilities of both the parties.
Promissory Note is a promise made by a certain person to pay certain sum of money on demand.
If you want to take legal action, promissory note is the better option. MOU will not support recovery of debt given.
ajay sethi
(Expert) 02 May 2014
file summary suit for recovery of amount of loan . obtain cheque from friend with amounts filed in .or promissory note
swetha
(Querist) 02 May 2014
thank u sir for ur suggestions...
swetha
(Querist) 02 May 2014
thank u sir for ur suggestions...
Sankaranarayanan
(Expert) 02 May 2014
pro misery note is the best way to recover the loan amount , failing to pay back then file summary suit for recover the loan amount
Rajendra K Goyal
(Expert) 02 May 2014
Taking post dated cheques is also an alternate.
Guest
(Expert) 02 May 2014
In view of your description of the case, it can safely be said that in case of default in repayment, the only thing your cousin can do is to wait indefinitely and helplessly for the return of money. Of course, he can take legal steps in a bid to recover his money, but should also be ready to spend huge expenses of litigation from his pocket in addition, while his friend would be fighting the case at the cost of your cousin untill your cousin wins the fight.
Sudhir Kumar, Advocate
(Expert) 02 May 2014
I slight disagree with Mr Sethi as he said
" if you have given loan and your friend fails "
I would sau that
" when you have given loan and your friend will certainly fail to repay"
Sudhir Kumar, Advocate
(Expert) 02 May 2014
Agreeing with Mr Dhingra I will add that when making charity to a friend you cousine should not bother about papers.
swetha
(Querist) 03 May 2014
sir it is not a small amount and its my cousins hardearned money that is the reason he is thinking of the legal aspect
ajay sethi
(Expert) 03 May 2014
since your cousin is adamant and he wants to give loan to his friend adopt safeguards suggested by us . but dont be surprised if friend fails to repay loan
Sudhir Kumar, Advocate
(Expert) 04 May 2014
if your cousine really wants the money back that he should settle for gold (nothing else nothing more) equal to the amount to be mortgaged in kind. Otherwise the recovery is least likely after spending huge money to lawyers and to court officials etc.
Sudhir Kumar, Advocate
(Expert) 04 May 2014
further if it is your cousine who wants to squander his money in charity then why do you bother.
T. Kalaiselvan, Advocate
(Expert) 05 May 2014
Do not be disappointed, legal options are still open, taking that MOU as a receipt for the money borrowed, a money recovery suit can be filed in a civil court.
