Formalities required to recover friendly loan safely

593 votes

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Advocate Ramniranjan Chaturvedi LawRato

542 votes

I think you have taken Post dated cheque from him, otherwise the validity of cheque is 3 months not 1 year. Ask your father to enter an borrowing agreement with that person and mention in that agreement that your father gave him Rs. 1 lakh as a debt for his need and that he accepts his liability to return the amount within a stipulated time. The agreement should be in the form of an acknowledgment of debt from that person. Make the agreement on Rs. 100/- stamp paper.

Advocate Pradeep Naik LawRato

548 votes

Firstly, how is the cheque valid for 1year cheques are valid for only 3 months, if in case the date mentioned on the cheque has passed you should produce the cheque to your bank within 3 months of the date mentioned on the cheque, if the cheque is not honoured then you can approach the court under 138 Negotiable Instrument Act. Remember that under NI Act sec 138, you need to establish that the cheque was for a consideration, so as a safeguard you should get a letter from the person you gave money stating that he is giving the cheque so as to return the friendly lone taken which was given as a good gesture, in the presence of a third party.

Advocate Shantanoo Saxena LawRato