Legal Question in Civil Litigation in India

Money given to a friend

Hi,

My wife sent 30lakhs from our US account to my friends bank account as a loan, which can be proved from accounts. He gave a blank cheque and promised us to pay Rs 2 monthly interest until the day of realization. It is almost 2 years now and he is not responding to our calls. During that time I was in India and became metally ill and not sure whether he had obtained any signatures from me on any paper(white paper) pretending for some other use.

1.Can he make a hand receipt out of that and claim to have paid the money?

2. Is it legally valid of paying such a huge amount in cash?

3. Even if he could produce a hand receipt signed by me, is it legally valid if my wife asks for her money.

4. He is rich and not caring us means that he may have coverd for himself of the debt. One possible reason is that he may have issued a cheque that has been stopped for payment or may have given a complaint as lost or stolen.

Can we present the fact that it has been given at the time of money transfer and fill the cheque and present to the bank to proceed further?

5. What will happen if he had complained 2yrs back that the cheque is lost?


Asked on 11/03/08, 2:39 pm

4 Answers from Attorneys
Aniruddha Pawse Aniruddha.P.Pawse Advocates

Re: Money given to a friend

1)Yes but if you can prove forgery he will go to jail.

2)If you could prove it from accounts

3)Refer to 1)

4)Limitation has to be seen

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Answered on 11/10/08, 6:13 am
Yanala LaknaReddy Law towers

Re: Money given to a friend

You can file recovery suit. You can also file criminal case under section 138 NI act, basing on the cheque in your hand. Let them come forard with the defences you have doubted,He also laible for explanation for the loss of signed cheque,genunes of report.

Dont think that you canot handle the matter, If we had a real prblem, law will help us.

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Answered on 11/03/08, 7:04 pm
Sudershan Goel India Law Offices of Sudershan Goel - Advocate

Re: Money given to a friend

1. Yes, a receipt can be made if you have signed.

2. Yes, it is valid. the charging of such a huge interest itself does not inspire confidence and fair play. you are claiming interest of more than 75% p.a.??

3. Yes, the receipt may be valid and binding upon your wife;

4. Your question is not clear. Please re-state clearly.

5. The statement is vague. You do need to depend upon his statement; Your bank may confirm you if the amount was debited from your account.

I would recommend making efforts for out of court settlement of the dispute.

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Answered on 11/03/08, 8:30 pm
Nasir Butt Nasir Law Associates

Re: Money given to a friend

Definitely receipt can be made. Receipt must be handwritten of the person making it. No person can make receipt on the behalf of other or fraudulently. It amounts criminal act which can be complained to local police station. However receipt made by him will amount forgery under the Indian Penal Code. You have to establish that white paper was got signed at the time of advancing loan.

Charging high interest rate is not justifiable. It is not legal to give blank cheque. It is must be written by its maker, i.e., account holder.

If he produces hand written receipt made by him, it is not valid legally but you have to prove that it was not made by the lender but it is forged document prepared with fraudulent intent.

He might be supposed complained the cheque lost two years back, that�s why you should refrain to fill in it.

You may file recovery suit proving the advance of loan by all the means you have so far.

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Answered on 11/03/08, 9:24 pm


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