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UI gave 15lakh loan of which 2.7 lakh cash from gold mortgage for free of interest in 2023 sep to my childhood friend. Now he is saying he can’t pay me due to losses of about 1 crore in his business.He is saying he is getting depressed so not to bother him now.I gave 9 lakh of my wife savings in it without her permission saying I’m gonna invest that money. I can’t take legal action on my childhood friend. but, I can tell him I’ll proceed with a lawyer if he doesn’t pay to make him fear a bit. Is this okay legally? How to convince him to pay me atleast 9 lakh?
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UI have a very good relation with his family. Can i threaten him like this and recover some money rather than sending legal notice?
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UYes you may be true. But, sometimes we can’t avoid.There will be some situations where we can’t deny them.
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DEven after going to an actual lawyer and filing a recovery suit the likelihood of him giving your money back is very low.
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DThis is a civil matter and the court is also slow moving and passive usually. You should read about how such cases go on court websites.
I know cases where even after the court gave judgement in favor of the petitioner, no money was revived . This is not to discourage you but to make you aware of ground reality so you can take your best action in a timely manner.
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S**DON’T LEND FRIENDS & FAMILY MONEY**
Lending money to friends and family is a loss-loss. They will try to weasel out of paying, and you’ll lose both them and your money. When dealing with money, familial sentiments should be a non-factor.
If you’re gonna lend him that much, you should’ve done your due diligence and followed the relevant paperwork.
Now, you’re not even willing to sue for money which is yours to begin with because your friend who won’t return it is feeling the big sad.
Get a fucking lawyer and sue. He isn’t your friend; if he was, he would’ve prioritised what he owed to you. And take this lesson here to heart.
A fool and his money is quickly departed, indeed.
Money lent beyond ₹10,000, which I believe is the amount big enough, should always be with all the necessary paperwork, witnesses and lawyers, and with the notification that failure to repay in timely manner will be responded with lawsuit.
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UThanks, but I don’t have any documents signed. Apart from bank transfer receipts, will those work as some proof if he denies completely? I’m willing to lose the amount I gave through cash . tbh 9 lakh is enough for me right now.
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SI’m not actually a lawyer, but I’ve helped lawyer friends deal with cases like this too many times.
Without any documents signed, it’s not looking too good, but like I said, your best bet is to get a lawyer, and like you said, tell your ‘friend’ that you’ve got a lawyer to proceed with the matter legally, and not to fall into any sentimental traps. Hopefully, this will be enough. But if it isn’t, proceed with your lawyer and *hopefully* your bank transfer receipts will be enough.
Because you haven’t signed any documents, I*hope* you and your ‘friend’ did all the dealing through text and not verbally or through unrecorded calls, because without any proof that you did lend him for that purpose, it’s gonna be bleak.
Get a lawyer and do not ask for 9L initially. Ask for all and while you’re willing to settle for 9L, go down very slowly and after much haggle. You know what I mean.
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AForget about the money; the real issue is that you lied to your wife about giving away the savings you both worked hard to accumulate. In financial terms, this is known as ‘financial infidelity.’ Studies have shown that the emotional trauma a partner experiences upon discovering this betrayal is comparable to the pain caused by infidelity (cheating).
You should first come clean to your wife and then deal with the world. -
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HSend him a legal notice and file a case. If you are able to show that you have given him the amount through bank statements & correspondences etc. that should be sufficient. You cannot recover any amount paid in cash.
Don’t think about relationship, that is going to get ruined anyways now that he has refused to pay back. Trust me on this. I am a lawyer and had a client in similar situation like yours and who did not taken legal action in time thinking it was dispute within family. By the time he decided to take legal action it was too late and his claim (over 1 cr) became time barred. There is a time-limit of 3 years from date of default in payment for filing cases. After that time has passed you will lose the right to legally recover the debt.
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UOmg. Since it’s a interest free loan how to calculate the time limit? Is it from the day I loaned him? Also do I need to tell about this to my wife if I want to proceed legally?because,I dont have proof of earnings for whole amount. She don’t know about this yet, I want the clear this without involving her.
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HWhen was he supposed to return the 1st instalment? If nothing was agreed upon, then you can calculate the period from the date you made the payment. Also, if there is no paperwork regarding the loan, then while filing the case or sending notice, mention the interest rate as 5% p.a. or something. You can say that you are willing to let it go and accept only the principal amount but do not call it an interest-free loan. Consideration is an essential part of any contract. If you are getting nothing in return, then it does not count as a valid contract, and you won’t be able to recover your money.
Did you make payment to him from your wife’s account? If yes, then you will need to involve her in the legal proceedings. If the entire amount is disbursed from your account, then you can proceed with the case without involving her. But personally, I would recommend you inform your wife. What if she wants to use the savings for something tomorrow? What will you tell her then? Or what if your friend decides to come to your house to talk about the issue or sends a letter/notice, and everything is revealed to your wife then? Court cases take time, and it will be hard to hide from your wife. It’s best if you tell her yourself rather than her finding out some other way.
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FDon’t lend the money you can’t loose. If you have a loan agreement and all transactions through banking channel then proceed legally by sending him a legal notice through a lawyer. If he fails to pay you can file a civil suit which will take 15-20 years for a judgement.
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UDamn this is exactly what my father did almost felt like my father came to reddit and wrote this. So here is what happened my father took some gold loan and his saving and gave to few folks hoping for high interest without telling my mom about this. After few years all of them defaulted now my father has huge loans and my father told my mom about this ever since then they fight often and my father tried to go through legal means to get the money back after a year we got a judgement that they will be paying some minimal amount every month.
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SHi,
I have a suggestion. Though I am a lawyer, things always dont work out the legal way. I will suggest you work out a EMI structure with your friend. Put everything on paper and a token interest to keep your childhood friendship in pic. Put in a three year repayment period. In the agreement, you can put in a clause stating that in case of default in repayment of EMIs, the entire loan becomes payable on demand. You can also have a provision for Security cheques (signed cheques with your name and his signature and in case of default you bank them and you can take him to court for cheque bouncing). If you structure the loan in to EMIs, the burden to repay everything in one go lessens on him and you keep getting your money back in easy instalments. Once the instalments flow in, put into SIPs in good equity MFs and let the money grow .
This agreement will hold you in good stead and help you recover the amount in a easier way.
Cheers
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MThe guy is saying he is broke. You have borrowed what was not really yours – without permission and gave it to him.
Have a chat with your wife. The conversation will not be pleasant for you – but its better that you tell her how you will compensate her considering that you have a low chance of getting any of the money back.
You can at best get an acknowledgement from your friend for the loan and frame terms of repayment – try getting this done on a agreement. Your chances of getting money back – still low – as this was an unsecured loan. The paperwork is to give you a sense of satisfaction – and you can hope that if your friend has better days in future – he may atleast repay you some of the money.
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UYes, I confessed about this to her, and she remained silent for a while. But in the end, she told me to let it go, saying i already did the mistake and it’s too late and asked me to try to get partially recover it. But, i couldn’t stop thinking about this whole thing. I’ll threaten him with legal action if not I’ll proceed through it.
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UI think it’s true. He recently sold two properties in a hurry for less than the market price to repay loan sharks. Also, I found out that his father was approaching people for loans using his personal guarantee. As far as I know, he lied to some by offering a namesake guarantee on properties that are already hypothecated to banks or have existing loans on them.
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LAnother day another cheating case by a “friend”. Thanks to these stories, I have made it super clear on not lending high amounts of money on loans to friends, especially when they say they want it for investment or for starting a business.
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