Legal Question in Banking Law in India

My query is: Say a old staff or friend asks for a temporary loan of 10k or 20k or so in a very genuine situation. Normally we give them to help them out. But after having received a loan they don't turn up / or do not pay.

As no proper legally valid document are signed we r unable to take any action rather who has time for action but atleast they must have some fear in mind that they have to honor their commitment.

Some one yesterday advised me that I must get Bill of exchange signed and collect a post dated cheque. Is that OK or there is a better safer documentation possible.

Thanks and Regards,

Alok Tholiya


Asked on 7/08/11, 1:43 am

3 Answers from Attorneys
Sanjay Kalra Sanjay Kalra & Associates

whatever you have mentioned is also fine but you can ask them/him to accept the liability of loan on a apiece of paper saying that he has taken loan and would give back in whatever time is agreed between both of you and get it sighed.

Read more
Answered on 7/08/11, 6:55 am
Professor SOMNATH MUKHERJEE MUKHERJEE ASSOCIATES(Cell +91 9874753359/ 9477781578)

beter you send a legal notice

Read more
Answered on 7/08/11, 9:39 am
Aniruddha Pawse Aniruddha.P.Pawse Advocates

post dated chq's with their receipts duly signed that they have received advance is better option.

Read more
Answered on 7/11/11, 5:11 am


Related Questions & Answers

More Banking Law questions and answers in India