- This topic has 7 replies, 6 voices, and was last updated 1 year, 3 months ago by
.
-
Posts
-
-
LI lent ₹10 lakh to my friend on a monthly interest basis. As security, I received two cheques from him and also executed a sale agreement for one of his properties. He took this money to start his business.
Additionally, we signed a Memorandum of Understanding (MoU), which states that he has borrowed ₹10 lakh from me and, as security, has provided a sale agreement for the land and two cheques. The MoU also mentions that if he fails to repay the amount within 12 months, I have the right to take legal action or use the cheques to recover my money.
The MoU and sale agreement were valid for 12 months, and they are set to expire in the next month.
For the first six months, he paid me the agreed interest, but for the last five months, he has not made any payments. Now, he claims that since he couldn’t start his business, he is unable to repay me.
With just one month left before the agreement expires, what is the best course of action I can take to recover my money?
-
-
-
-
-
B*Hey, practicing High Court Lawyer here!*
You should immediately deposit the cheques—if they bounce, send a legal notice under Section 138 NI Act and prepare to file a cheque bounce case (criminal offense).
At the same time, file a civil suit for recovery based on the MoU, cheques, and sale agreement. This lets you claim ₹10L plus interest and even request the court to attach his property.
Asking for a sale deed is risky unless he’s fully cooperative and the land title is clear—do proper due diligence.
Don’t wait for the MoU to expire. Act fast. Cheque bounce + recovery suit together will give you the strongest legal footing.
-
