hello,
i gave my friend some money and for that i made a promissory note (with 1rs stamp)and he signed it, i also made a written document where he signed and gave some blank cheque with signed and gave house document too which is included in written document. but in future he refuse to give me money or something what legal action can i take and what i should do?
| Originally posted by : Dharmendra Chawla | ||
 |
hello,i gave my friend some money and for that i made a promissory note (with 1rs stamp)and he signed it, i also made a written document where he signed and gave some blank cheque with signed and gave house document too which is included in written document. but in future he refuse to give me money or something what legal action can i take and what i should do? |  |
Hello,
You have a reasonable amount of proof in your hand. It is important that you have stated the terms and conditions clearly in the document that you have. If your document has this clause, you have a strong proof.
In case he does not repay you in the future, then you can file a civil suit for recovery of money or a criminal suit for fraud/ breach of an agreement. This can be done in the civil court.
The lender can file a civil suit for recovering the money he owed through promissory note or loan agreement. He can do so under Order 37 of CPC which allows the lender to file a summary suit. He can file this suit in any high court, City Civil Court, Magistrate Court, Small Causes Court. This suit consists of an important declaration stating the specific relief the lender pleas and the relief should not be beyond the ambit of the order as final relief. The first step is drafting the summary suit and then it should be summoned to the person who borrowed money. The court requires a certain document to produce before them, along with the plain copy and summons. Once the suit is filed, the defendant will be asked to appear before the court within 10 days. If the person failed to appear, the lender has to show the summons he sent before and then the court orders him to send another summon. If the person has any defence he can claim before the court, if not the court will assume the lender’s allegation as true and reward the judgment accordingly.
The lender can also file a suit under the Negotiable Instrument Act. This can be filed only for people who did not return the money which was borrowed by the lender via cheques, bills of exchange etc. For instance, the person returned the money through cheque to the lender and later if he found it has bounced, the lender can file a suit under Sec 138 of NI Act and the person has to repay within 30 days. If the person fails, the lender can further file a criminal Suit against him. If the court finds him guilty, the person will be imprisoned for two years and also has to pay double the amount of the cheque issued.
The lender has to prove that the person had committed criminal breach of trust and had not returned back the money. So he can file a suit under Sec 420 of IPC as the person whom he had to lend the money has cheated him and also under Sec 406 of IPC for Criminal Breach and if the court finds guilty, the person will be imprisoned and has to repay the money he borrowed. Generally, the court takes a long time for the cases filed under this section.
Also, it depends on the amount that is involved. Take a wise decision while filing a case.
Hope this helped you!
Regards,
Ish*ta Desai
Law Student.
