Legal Question in Credit and Debt Law in India

I was borrowed 10 lac rs.cash (not through bank) From my friend in end of 2012. And I write him on a blank paper for 10 lac. After that I have big loss in business. Slowly slowly I have give him 4 lacs. But now he claim 15 lacs with interest . and also he submit a false FIR against me. Now what I can do. I have a recording that show I have give him 3 lac rs. And he have no cheque.


Asked on 4/02/14, 6:27 am

1 Answer from Attorneys
Fca Prashant Chavan Expert Edge LLP

02.04.2014

Dear Sir / Madam,

Maximum interest on money borrowed without any security is 36% per annum. So the interest on Rs. 10 lakhs (presuming you borrowed the money on 01.12.2012) @ 36% for 16 months works out to Rs. 4,80,000/- i.e Principal + Interest = Rs. 14.80 lakhs of which you have repaid your friend Rs. 4 lakhs and you have proof for Rs. 3 lakhs. You net outstanding loan amount with interest as on date payable to your friend remains Rs. 10.80 lakhs. Your friend will be interested in his money and he has nothing to do with your loss in business.

Regards,

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Answered on 4/02/14, 8:03 am


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