Goutham K S (Graduate in HR) 14 July 2013

Money recovery of rs/- 40 lakhs

My dad is a financer he collected money for the finance business from his co-brothers as they are government employees . From past five years he started to give money to his friend periodically upto Rs/- 40 lakhs (interest @ 3% per month) as finance till the last year. My dad has cheques for surety from his friend but from last year september he is not paying interest and he is telling that he will return only Rs/- 16 laks so my dad decided to lodge a cheque bounce case on him. But....,

1. My dad is not paid the tax.
2. The money belongs to my three uncles the gave it for the finance business as we are not so rich as my uncles.
3. We do not have any property except our own house.

My Question is

1. How to show sources of income?
2. What are the reasons can be given for lending the money to his friend?

Reply Follow

4 Replies

Rama chary Rachakonda (Secunderabad/Telangana state Highcourt practice watsapp no.9989324294 ) 15 July 2013

A Cheque bounce case normally takes an average of one year to complete the proceedings before trial court. The following are the important stages in a cheque bounce case.

1) Filing of complaint: The complaint need to be filed before the jurisdictional magistrate within 30 days from the accrual of the cause of action.

Goutham K S (Graduate in HR) 15 July 2013

Originally posted by : Rama chary Rachakonda
	A Cheque bounce case normally takes an average of one year to complete the proceedings before trial court. The following are the important stages in a cheque bounce case. 1) Filing of complaint: The complaint need to be filed before the jurisdictional magistrate within 30 days from the accrual of the cause of action.

Hi sir, thanks for the reply by the way i know the proceedings. I need help with source of income to show. How to show sources of income? My dad does not have income returns for the amount he gave i.e Rs 40 Lakhs.

sharada h v (Advocate) 15 July 2013

u better file a complaint within 30 days of the incident. and to show the sources of income u need to show that ur dad received the amount form ur uncles to do the buisness as a hand loan.

Advocate Ravinder (Advocate/Attorney) 15 August 2013

Mere taking cheques as surety is not enough, your father should take some supporting documents as well i.e. promissory note, MOU, undertaking from the borrower staing the purpose of taking loan, otherwise you will lose the case of cheque bounce.

Moreoever, your father had charged 3% interest is exhorbitant and which is assumed as money lender and lending money without money lending licence will be offence. Over all your case is weak. Try to settle with the borrower or try a chance litigation.