Menu
keyboard_backspace
ask a question ask a question
Get Realtime Updates of your Request. Download Vidhkarya App

Ask a Question - Free Legal Advice

Q.Need to recover debt from a person

Q. Need to recover debt from a person

I had lended 9 lakhs to an aquarium businessman who at the time seemed to be genuinely in need of money to run his business. I got a written agreement on a normal paper with a witness sign from my end and this aquarium businessmans signature. This agreement stated that he would repay my 9 lacks with an interest of 36% at the time of Rrepayment which was 9 months from the date the agreement was made. Its been 3 months now since i lended him the money. Recently i uncovered that this person had borrowed money from many other people ( most of whome were his customers ME INCLUDED) and promised them the same thing. This person has disappeared and not answering his calls or responding to mails. Is there any legal way to recover my money and what is the procedure. I am just a student and i don't have any money at the moment. PLEASE HELP!
Share this questionShare Icon

Showing 6 of 6 Responses

A. Send him a legal notice.

Found Helpful
Found Helpful
Share this answerShare Icon

Ashish Dongre

Experience: 12 Year(s)

Responded 5 months ago

View All Answers
Reply Here

A. hallo sir you should send legal notice for recovery. if they didn't reply to your notice then you can file summary suit for recovery into civil court.consult with lawyer for filing suit.

Found Helpful
Found Helpful
Share this answerShare Icon

Deepak Bade

Experience: 9 Year(s)

Responded 5 months ago

View All Answers
Reply Here

A. Facts not clear. You did not mention whether you have a money lending license. For your understanding, money lender license is required to deal in the business of lending the money on interest which should not be more than 21% for unsecured loans for non-agri people and 18% for secured loans for non-agri people and for agri people is 12% and 15% respectively. Doing money-lending business without license is illegal and attracts penal provisions under the Money Lending Act. As such any act which attracts penalty under a Statute is forbidden by law and cannot be enforceable before the court of law in view of section 23 of Indian Contract Act as held by Full Bench of Allahabad High Court which is reported in AIR 1994 Allahabad 298 FB.

Hence your agreement with him is a void agreement and forbidden by law:-
(i) if you don't have a money lending license
(ii) if you have a money lending license but you've overcharge him above interest rate of 18%-21% as it is liable for imprisonment for a term that may extend to three years and also a fine that may extend to Rs 30,000.

under these circumstances your complaint is liable to be dismissed.

Found Helpful
Found Helpful
Share this answerShare Icon

ROBERT D ROZARIO

Experience: 15 Year(s)

Responded 5 months ago

View All Answers
Reply Here

A. See if you have a written agreement then you can go ahead and file a summary suit to recover ypur money. But before that send him a legal notice.

Found Helpful
Found Helpful
Share this answerShare Icon

Abhimanyu Shandilya

Experience: 14 Year(s)

Responded 5 months ago

View All Answers
Reply Here

A. You will also come into trouble for money lending without a Licence,better to consult a professional Senior Advocate to take up the case quickly and protect your interest.

Found Helpful
Found Helpful
Share this answerShare Icon

Ambrose Leo

Experience: 9 Year(s)

Responded 5 months ago

View All Answers
Reply Here

A. you can file a police complaint. you can also file a civil suit if you have the last residential address of the debtor and if he has some property known to you.

Found Helpful
Found Helpful
Share this answerShare Icon

T B L Murthy

Experience: 5 Year(s)

Responded 5 months ago

View All Answers
Reply Here