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Procedure to recover money from a friend legally


02-Apr-2023 (In Recovery Law)
I lent 2 lakh Rs. to a friend in various instalments for his business in which he promised me a position and share in profit. When inquiring more about his business it turned out he was just wasting my money on wishful endeavours and he had borrowed money from many more. He started making false promises about returning the money. ultimately his family has asked to take whatever legal action we want as they don't care.He says he'll return the money by paying 2000 each month.Basically, He is not going to return the money and is just befooling us. What can i do now? what legal steps can help me recover my money
Answers (6)

Answer #1
62 votes

If you have lent money to a friend and they have not repaid the amount as agreed, you may be able to recover the money through legal means in India. Here are the general steps you can follow:

  1. Send a demand letter: You can start by sending a demand letter to your friend asking them to repay the money they owe you. The letter should clearly state the amount owed, the terms of repayment, and a deadline for repayment.

  2. File a civil suit: If your friend does not respond to the demand letter or refuses to repay the money owed, you can file a civil suit against them in a court of law under the provisions of the Indian Contract Act. You will need to provide evidence of the loan, such as bank statements, receipts, or written agreements, to support your claim. The Act provides for the following remedies in case of a breach of contract:
    - Specific performance: This remedy requires the party in breach to perform their obligations as per the terms of the agreement.
    - Damages: This remedy allows the aggrieved party to claim monetary compensation for the losses suffered as a result of the breach of contract.?

  3. Attend court hearings: Once you have filed the civil suit, you will need to attend court hearings as scheduled and present your case to the court. Your friend will also have an opportunity to present their case and respond to your allegations.

  4. Obtain a judgment: If the court rules in your favour, you will be issued a judgment against your friend, which will require them to repay the money owed to you. If your friend fails to comply with the court order, you may be able to take further legal action to enforce the judgment, such as seizing their assets or garnishing their wages.

It is important to note that legal proceedings can be time-consuming and expensive, and it may be worth exploring other options for resolving the issue, such as mediation or negotiation, before pursuing legal action.


People also ask

What to do if someone is not giving money back?

You can take legal action if someone does not return money according to the terms agreed. You can follow these steps: Send a demand in writing for payment. You can file a claim in small claims court.

Can I file FIR if someone is not returning my money?

You can file a civil suit at the local district court in your district. The time limit to file a civil suit is three years after the date you lent your friend money. You can also lodge a police report under Sections 406 and 420 of Indian Penal Code.

Can police help in recovery of money?

Karnataka High Court: Criminal Law Cannot Be Used To Recover Money Unless Cheating/ Criminal Breach of Trust Is Proven - 02-Aug-2022

  
Answer #2
663 votes
It is very simple sir. Send a legal notice to him for recovery of money. And after that file a suit for recovery against him in the court. But the basic things how did you make payment and what documents do you have with you. Or any other help contact me.
Answer #3
685 votes
Hi..
There are various ways in which you can recover your money with interest. You can even recover your money if there is nothing in writing between both the parties regarding the lending of money. You can either get your money through legal way or through the other ways available.

Answer #4
717 votes
You can file a case under section 138 of negotiable instruments Act ,if the payment which is given by you is not in cash. You should file it within the limitation period. After the limitation period is expired it becomes difficult to file a case.
Answer #5
296 votes
If someone owes you money and is not returning it, you can take legal actions to recover your funds. Here are the steps you can follow:
  1. Send a Legal Notice: Begin by sending a legal notice to the person who owes you money. This notice should state the details of the debt, including the amount owed, the reason for the debt, and a demand for payment. You can seek the assistance of a lawyer to draft and send this notice.
  2. File a Civil Suit: If the person does not respond to the legal notice or refuses to pay, you can file a civil suit in the appropriate court. In India, civil suits for recovery of money fall under the jurisdiction of the appropriate civil court. Your lawyer can help you with this process.
  3. Provide Evidence: During the civil suit, you'll need to provide evidence of the debt, such as contracts, agreements, or any communication that establishes the loan. Your lawyer will guide you on the necessary documentation and evidence required.
  4. Court Proceedings: Once the case is filed, the court will initiate proceedings. Both parties will have an opportunity to present their case, and the court will make a judgment based on the evidence and legal principles.
  5. Enforcement of the Judgment: If the court rules in your favor, it will issue a judgment in your favor for the recovery of the money owed. You can then take legal steps to enforce the judgment, which may include seizing the debtor's assets or garnishing their wages.
  6. Alternative Dispute Resolution: In some cases, you may consider alternative dispute resolution methods like arbitration or mediation to resolve the dispute out of court. These methods can be less time-consuming and costly compared to litigation.
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Answer #6
130 votes
Send an official demand for payment. File a complaint in the small claims court. Consult a lawyer to help you present your case in the proper court. You can report a fraud to the police if you feel you've been defrauded. Get a court order attaching the property of that person.
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Comments by Users

Ravi
I have given 1.5 lakh to someone half money was tranfer in his account half was in cash he not returned that money since 4 years. How can i recover my whole money?

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