- This topic has 43 replies, 37 voices, and was last updated 1 year, 4 months ago by
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UReally need some good advice from the community here. So, I gave 50 Lakh loan to a friend about 1.5 years ago. The friend is builder and never had money problem, he needed money to finance his project and I tried to help with the money, he agreed to pay 60 lakhs after a year.
The friend has genuinely gotten into trouble as his projects did not get the required approval and he has now a huge debt pile from a few investors. My payment was due in Sep 24 and since then he has paid 15 lakhs so far after chasing him multiple times. He is communicating with properly, and has shown all the intentions to pay the money back. However, he has failed to meet his commitments many times. My assumption is that he is trying to manage multiple creditors and does not have enough liquid money. He assured me that he has a few properties with his partner and they are trying to liquidate those properties to pay off his debt.
I dont have any documentation, plus I paid him cash. Yes, ai was stupid but he is my childhood friend and I trusted him.
I am scared that he might not be able to repay anything more to me or deprioritize me against other investors. He and his father (who is the main director of the business) are willing to sign any documents, etc.
What documents should I get them to sign and how can I protect myself as much as I can so that I build leverage against him and if god forbid, it comes to the complete non-payment, then I can build a solid case against him and his father.
Further, what other approaches can I apply in this case? Would really appreciate any guidance as I am scared to death
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AHe was your childhood friend. He has paid 15L. He is in trouble. Forget the extra 10L. Just get your principal back as soon as you can but do not stake this friendship that you have. Show mercy cuz if you go the hard way you lose the friend and the 35L too. Be smart about it, don’t get anxious and let it ruin this whole situation
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UPrepare a notarized contract and obtain a single post-dated check in his name, not the company’s name. Ensure it’s just one check for the full amount, not multiple checks for smaller amounts. Give him sufficient time to make the payment, and if he fails to pay, use Section 138 of the Negotiable Instruments Act (NIA) for the check bounce.
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S>Ensure it’s just one check for the full amount, not multiple checks for smaller amounts
Why? Genuinely trying to understand the reason behind this.
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BFirst get 3 small cheques totaling amount instead of one single cheque without date.
So you can file case bounce case in future
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QSo basically OP gave his friend 50 lakh black money to get 20% return in a year, which I assume will be again in cash. Because of people like him, most of the tax burden comes to salaried employees.
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USpeculate all you like. No one knows whether tax was paid on the money I gave to my friend or not…
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UAsk him to transfer property worth 1 crore to you among the ones that he is trying to sell till he pays off, get him on the hook . My builder friend offered this to me . He should walk the talk.
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SThe moment you said 50l cash..you can forget it. Childhood friend will surgucally cut you off since you cannot report thus. Only tax paid friendly loans are recoverable…numerous judgements on this. So it is best to take a flat or property as security and get it registered in your name and ho to sleep.
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URaise an invoice to your friend through an entity(your current business or you can get a friend’s company) for services provided or goods sold, then take a cheque against that invoice. If he returns the money then fine otherwise go ahead and put a case for a bounced cheque, this is the process most Pvt money lenders use.
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S>50 L cash and unsecured.
You will get it back only if your friend really gets his projects on the line. I advise you to actually help him in any way possible to get his projects back on the line. You do not have any other option. TBH, if he has taken more unsecured loans from hostile people then they might harm him or even end him. Then you can forget your money.
You do not have any real way to get your money back unless he has any.
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HDon’t keep nudging him for money as it’ll irritate him as he is genuinely ready to give and if he feels irritated he will make you run as he has all legal upper hand to completely deny your amount.
So just finalise one good option for 50L of your money and ask him to sign it. This will not irritate him and he will sign considering your friendship.
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BLawyer here.
The question is whether you can prove the contract existed. Do you have written communications with him on whatsapp, email or SMS? If so, then you can use that to file a suit against him and recover that money.
My advice would be to not delay the matter any more and consult a lawyer and file a suit immediately.
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Ufirst of all WTF? 50 lakh cash??
ask him to transfer some property worth your loan amount in your name until he pays back the loan, forget the friendship, he’ll try to manipulate by saying “Don’t you trust me” n all that, you’ll have to manipulate him back by saying I dont have much left, and that you;ll need the money soon for a house construction, or your parents illness, or your family etceither this
or ask for a post dated cheque(you can date it upto 1 year from the previous due date), in his name, a single cheque that is the same amount as your agreed amount, give him another year to pay back, if he doesn’t, the cheque will bounce and then you can pursue this legally.
keep all the chats screenshots, and if you decide to pursue this legally, then get ready to show where you got 50 lakh in cash from and the taxes that you didn;t pay on it.
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NThis is advice from someone who has seen similar situations very closely.
From his point of view, your loan being an unsecured loan from a powerless person, is the LAST on his priority.
It is very probable that you will never get the money back unless you find a way to show him that you are powerful and shouldn’t be messed with.
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NWhy are people advising op to get cheque and “then proceed legally” if he doesn’t return money?
“Section 138, N.I. Act penalizes the dishonour of any cheque which has been issued in the discharge of the whole or part of “any debt or other liability”.
So you need to have a LEGAL way to show that you had a debt or any other liability, which is missing here in OPs case.
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