Legal Question in Credit and Debt Law in India

my friend trades in commodity market.he asked me for some money .i agreed to give him money.he also agreed to give me 8% extra amount of my money. that means i gave him 350000/_and he return 28000/-per month .for security i have taken Notery documents of his house which is noterised by Notery Lawy er.after four months he lost total money in trading.in this period he tansfered house documents to his wifes name .two days ago i see that he is selling his house to another person . i went to his home and asking for my money then he told me that he will give me 1 lac instead of 3.5 lac. he said that he is in big loss and also to give big amount to other people .he sold his house to 38 lacs thirty eight lacs .i have also cheques of that 3.5 lacs .please tell me Sir , which step i will take with that notery documents and cheques ?


Asked on 3/17/14, 4:26 am

1 Answer from Attorneys
Fca Prashant Chavan Expert Edge LLP

17.03.2014

Dear Sir / Madam,

Your friend ought to have repaid back the amount you loaned him inclusive of simple interest totalling to Rs. 3,78,000/- in 13 Equated Monthly Installments. If he / she did not repay you a penny during the four months that he / she invested the amount in commodity trading, there seems no intention on your friend's part to repay back the money. "Paisa lenay may kabhee inkaar ya manaa nahee kartay" so take the Rs. 1,00,000/- that he is giving you and tell your friend point blank that since he has sold his house, he has to immediately repay and settle your entire outstanding loan and the balance amount of Rs. 2,78,000/- immediately, otherwise you will deposit the security cheque of Rs. 3,50,000/- given by him to you. If the cheque bounces, you will immediately lodge a case under Section 138 of the Negotiable Instruments Act, 1938 against your friend for recovery of the amount including damages thereto (compensation and damages amount being the differential of Rs. 72,000/- (Rs. 3,50,000/- minus Rs. 2,78,000/- towards the delay in settlement and mental harassment) provided you have received Rs. 1,00,000/- in repayment from him.

Regards,

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Answered on 3/17/14, 4:56 am


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