Legal Question in Credit and Debt Law in India

I have give a friendly loan of RS 5 lakh in cash against a cheque of same amount with signature on stamp paper and per note.

CAN WE LEGALLY GIVE FRIENDLY LOAN OF 5 LAKHS IN CASH

HOW I CAN PROCEED LEGALLY


Asked on 8/12/13, 1:00 am

1 Answer from Attorneys
Fca Prashant Chavan Expert Edge LLP

12.08.2013

Dear Sir / Madam,

Today is Kalki Jayanti !!

Yes, you can give a friendly loan in cash. Since you need your money back, you should deposit and encash the cheque your friend has given you towards repayment. If that cheque is returned unpaid, you should immediately lodge an FIR, and sue your friend for "cheque bouncing" under Section 138 of the Negotiable Instruments Act.

Regards,

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Answered on 8/12/13, 1:32 am


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