Neighbour denying refund of money given to help him
Pravin
(Querist) 07 October 2018
This query is : Resolved
Dear Sir/ Madam,
Please guide me I have given 1 lakh rupees to my neighbor to help him else his home was about to seize by bank but now after 7 months when i asked him to start payment of the same in installments his wife tried to be aggressive on the discussion and refused to pay back till they get settled.
I have given money through net banking but didn't signed the agreement. Now please guide me how can i get back my money legally. They have given me two signed blank cheques for repayment.
Thanks & Regards
Vijay Raj Mahajan
(Expert) 08 October 2018
Ask them to give a written undertaking with regard to this payment and exact time by which it will be paid.
This document will help you to recover the amount through money decree from the civil court.
Cheques given by them you can always use for getting bounced and non payment too for criminal proceedings under section 138 NI Act, but that's another issue.
Dr J C Vashista
(Expert) 08 October 2018
You have the option to issue legal notice for refund of the amount followed by a suit for recovery through a local prudent lawyer;
however, chances for favourable orders/decree are remote,
or
forget the amount thinking it was given as charity.
Sudhir Kumar, Advocate 
(Expert) 08 October 2018
Never expect them to refund any money (without recourse to NI Act) as now the money is their.
Sudhir Kumar, Advocate
(Expert) 08 October 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.
Pravin
(Querist) 08 October 2018
Dear Sir/ madam,
With above suggestions it is really very difficult and may be impossible to recover amount. Please guide me what step should i take now as i cant let it go.
M V Gupta
(Expert) 08 October 2018
Try the suggestions given by Shri Mahajan. If they refuse to give any written undertaking then use the blank cheques and deposit them after filling the payee name and amount, in to your bank account. If they are returned dishonored, file complaint in the Magistrates court. This is a criminal case and the defaulters are punishable with imprisonment and fine. But take care if the case is likely to drag for more than three years, you have to file suit for recovery of the amount before expiry of three years. otherwise, your claim will become time barred.
P. Venu
(Expert) 08 October 2018
As suggested, serve the Notice preferably through and advocate. You have the option to proceed with a civil action, if so advised. The fact that the payment was made through net banking would substantiate your claim.
C.V.Kansara
(Expert) 09 October 2018
File civil suit after serving notice.
R.K Nanda
(Expert) 09 October 2018
Nothing to add more.
Pravin
(Querist) 15 November 2018
Money i have given through neft borrower lives in Gujarat whereas my current location is Jammu after transfer. If i put her chq and if it bounces so can i file case in Jammu or i need to back to gujarat. My bank account is of Indore my native place. Kindly guide for the place of jurisdiction
Guest
(Expert) 15 November 2018
Dishonor of Cheque cases to be filed in the jurisdiction of where the Payee had presented the cheque. Time should be running now as the Cheque is valid for 3 month only and you could file the suit in jammu it self. Discuss with your Advocate.
