Loan agreement- who keeps the original?

akash (Querist) 04 February 2013 This query is : Resolved
Hello Experts,

A loan agreement needs to be registered between a private limited company (borrower) and one of its shareholders (lender). Both the borrower and lender want to keep the original agreement since they want something which is legally enforceable through court.

What should be done? Can a notarized copy be enforced in the court? I think the lender normally keeps the original, whereas the borrower gets a copy. What could be done so both the parties have a legally enforceable document (valid in court)?

Thank You in advance

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Guest (Expert) 04 February 2013
Original would remain with the lender only. The borrower can get a certified copy attested by the notary.

Advocate Ramesh (Expert) 04 February 2013
Even in the original agreement itself you should mention like original is with lender and the attested is with the borrower like that, then it can valid in court, if the borrower produced attested in court

Hazarae M Raj (Expert) 05 February 2013
can't we execute the agreement in duplicate with a mention in the body of the agreement that the agreement has been executed in duplicate and a copy is retained by both the parties? - (inviting comments from experts regarding the same..)

Guest (Expert) 05 February 2013
No, the agreement is in single document, while the other can be a true copy.

ajay sethi (Expert) 05 February 2013
agree with dhingraji

Raj Kumar Makkad (Expert) 08 February 2013
This signally drafted document shall remain with lender with specific mention therein.

Sudhir Kumar, Advocate (Expert) 09 February 2013
It is the lender who will be aggrieved in case of default so original will be with him only

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