Hi, you can't claim the interest at the rate 36% per month it is against the interest act and on the basis of the agreement you have to file a suit for recovery of money provided you have to file a suit with in 3 years form the date of the agreement otherwise your suit is time barred.
Can I get my money back through civil court
I am from Chennai and I gave rupees 3,00,000 to one guy for a period of 3 yrs. We also wrote an agreement with 20 rupees stamp paper for 3 yrs and in the agreement it is wrote as 3% interest for each month [ 36% p.a ] will be given on 1st date of each month and will settle the full money to me within the end of 3yrs. But the problem is he did not pay me any interest for almost 10 months now.When I asked him about it he is telling this is not a valid agreement as the interest rate allowed by Indian government is 2% for a month and if I ask more than that it is invalid. Now he is not even paying 1 rupee as interest and says he will not also pay 3,00,000 as it is not valid. More over he signed in only second paper where the sign of borrower is needed. I contacted a lawyer he said his sign is also needed in the first page as it is the stamp paper. Now can I take this case to civil court and can I get my money back atleast. First of all is it a valid agreement as I didnt get any of his documents or material for the 3,00,000 I gave him except that agreement. Please any lawyers clear my doubt There is no check involved here. I withdrawn 3,40,000 from my bank A/C and the next day I gave him 3,00,000 and signed agreement. There were 2 witnesses who also signed in the agreement. More over this guy [the person who got money from me]signed for a surity in a finance company for one of the witness. That witness is with me and he will tell the truth in court. One more thing is he transferred 2000 rupees to my bank A/C from his bank internet banking after 2 months for the interest of that month and he mailed me the screenshot of that through mail and he also wrote as interest in the subject column of the mail. Is these proofs enough to win my case?
Asked 10 years ago in Civil Law
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14 Answers
1. Your agreement for lending money against interest at rate higher than prescribed by the RBI is illegal,
2. For lending money against interest, you shall have to collect license from apprpriate authority,
3. You will certainly entitled to get back your lent amount of Rs.3 lakhs with interest to be fixed by the Court (which will normally be the Bank rate),
4. File a Money Suit against the borrower claiming the money back with interest, damage and cost.
1) do you have money lender licence . please clarify .
2) int the vent you file suit for recovery of Rs 3 lakhs with interest at 36%pa the defence raised would be that you dont have money lender licence .
3) material particulars as to when agreement was entered into have not been mentioned .
4) contact a local lawyer issue legal notice for recovery of Rs 3 lakhs with interest
You can issue a legal notice for recovering the amount and file a suit for recovering the amount.lodge a police complaint for cheating file a 138 case too.
Dear Client,
You are advised to file a police complaint agains the borrower. You require to get the agreement from the Registrar Office for proper stamp duty by paying the deficiet duty of Rs.80/- with charges etc.,
You require to file a civil suit for recovery of your amount , but the courrt will order to pay the amount with bank interest rate .
No I dont have any money lender licence. But still the percentage typed in the agreement is 3% for 100 rupees and he will give the interest in every month on a particular day. But it is not clearly mentioned whether this 3% interest of 100 rupees is for a month or a year. So can we argue that the interest rate is for year and not for a month mentioned in the court. But the worry is if we argue that then the interest will be so low and I have to pay the court fee,lawyer fee, stamp duty for 3 lakhs. At the end I will get below 2.5 lakhs. So thats my worry. Can I argue that he promised me a sum of money to be given by him which the law allows in India and the reason why it is mentioned 3% instead of a higher different figure that he only told that I cannot get more interest without licence and putting the blame on him. Will this work out. If we argue like this then What the court will order for just 3% interest will be given to me for a year or the court will allow more interest than 3% ? One more thing is he signed and gave that agreement before 16 months and the agreement is signed for 3 yrs. I forgot to say this part that on the day he signed the agreement. They were no witness to sign at that time and after 1 yr only the 2 witnesses signed in a different pen. Will he argue that this agreement his fake because the witnesses signed in a different pen?
Asked 10 years ago
1)is this a isolated transaction or you have advanced money to others also .
2)it is necessary to peruse agreement signed by you with borrower to advice . the interpretation of agreement can be made only after reading all the clauses of the agreement
3) witnesses have to sign n same date when agreement is signed . borrower will definitely take defence that no witnesses had signed the agreement on date mentioned in agreement .
4) it appears you did not consult a lawyer before advancing loan . you have given loan without taking some basic legal precautions .
5) contact a local lawyer
Hi, we can understand your problem but you have no option you have to file a suit for recovery of money and what all are you stated this is a matter of evidence and argument, if you are so concerned at the time of entering to the agreement you have to contact advocate did the thing legally......... there is no use in postmortem of the things.
Dear Querist
It will be better to contact a lawyer personally with the documents.
first of all send a legal notice to him and claim your amount with interest. But the defense will raise that issue that there is no money lending licence with you and you can not claim any interest against the loan but once he admitted your loan amount then you may get the same through court after filing recovery suit.
The interest rate is very high and not allowed by the civil court at the recovery of the principal.
1. The terms and conditions mentioned in the Agreement needs to be seen to give proper advice,
2. You claim hat he agreed to pay 3% per annum. The Court will fix tye rate of interest,
3. The witness shall have to sign on the same date when the agreement was executed to make the said agreement valid.
1.No one can lending money without valid license. In your case case you have no such license, then you can received money on basis of lending money but you can get that money on the basis of giving loan to him.
2. There is no restriction in giving loan to any person so your transaction is valid one.
3. As far as rate of interest is concerned you need money lending license or banker license.
4. When your transaction is legal and the document prepared by you and signature of the witnesses have no weight into proving of rate of interest decided by the parties.
5. That document is void ab initio.
6. You can file recovery of money suit. Because your transaction is valid.
7. You can't claim interest on that money but you have full right to claim interest on the said money from the date of institution of the suit to the decree of the suit, at the normal rate of interest prevalent in the ordinary course of business.
8. You must file a suit before civil judge and get back your money.
You issue a legal notice and then file a suit for recovering amount and 138 case. Only above rupees 10 lakhs you need licence for money lending
1. If this is the first time you advanced a loan then absence of money lending license does not impair your rights to move a civil court to get back your money along with interest accrued thereon.
2. The clauses in the agreement require a threadbare perusal before an opinion can be formed on the enforceability of the agreement in the court. However, the agreement seems to have been drafted in a clumsy manner as the period of interest should have specifically been mentioned therein. Since the duration of interest is not mentioned the court may calculate interest on an annual basis.
3.The witnesses ought to have signed the agreement on the same day as the debtor signed it.
file recovery suit for said amount of RS.3.0 lacs with interest in civil court within 3 years from date of advance of said amount.
