2 Answers
Dear Client,
Under the Indian Contract Act, when a contract is broken, the injured party is entitled to compensation for the loss caused by breach. A debt or obligation created by a loan can also be enforced. For a loan of Rs. 45 lakhs, the most practical route for recovery will be to send a formal notice with the help of a lawyer demanding the return of the said amount. If no action is taken after the notice, you can then file a money recovery suit in the appropriate civil court. If you have supporting evidence, such as the written loan agreement, promissory note, cheque, etc., you may also be able to use Order XXXVII of the Code of Civil Procedure, dealing with summary suit for a faster recovery as it applies to suit for recovery of a debt or liquidated demand arising on a written contract. Hence, preserve all the available documentary evidence.
It is also important to take into consideration the applicability of the Limitation Act. A suit for money lent is generally 3 years from the date the loan was made. Is your cousin has made a written agreement of liability before expiry, a fresh limitation period starts from the signed acknowledgment, as per Section 18. If he made a part payment before limitation expired, Section 19 can also restart the limitation. A criminal complaint for cheating is only worth considering if you can show that he had obtained the money by deception at the primary stage and that he never intended to repay. If this is only a repayment dispute or business failure, it will be treated as a civil matter. Hence, it is a more effective route to get civil recovery first. I hope this helps. If you have any further questions, please feel free to reach out.
Dear Client, as per your query, To recover ₹45 lakhs, your best bet is to issue a legal notice through a lawyer, which may force the borrower to pay up quickly without going to court. Since it was for a firm, you can file a Summary Suit under Order 37 of CPC, which allows for a quick recovery with acknowledgement, or file a normal Money Recovery Suit with bank transfer and WhatsApp chat records as proof. If there is proof of intent to cheat and a bounced cheque, you can file criminal charges under Cheating or Negotiable Instruments Act. I hope this answer is helpful. In case of further queries, please do not hesitate to contact us.
Thank You.