Money recovery from Friend
Introduction :
You extended a friendly loan to a family member, friend, or acquaintance, but they’ve disregarded, postponed, or refused to repay the money you generously lent. What legal steps can you take in such situations, and how can you prevent finding yourself without recourse? Don’t worry; this article will provide answers to these questions.
Legal Procedures in recovering your money :
- Consult a Lawyer : Your first step in the legal recovery of your friendly loan is to consult with an attorney. A lawyer will provide guidance and assistance once they have a clear understanding of your situation.
- Confirm Court Eligibility : Before proceeding to court, it’s essential to ensure that the money lent is a genuine debt and not a penalty resulting from any agreement. A lawsuit can be filed in various courts, including the High Court, City Civil Court, Courts of Small Causes, or other relevant courts, depending on your specific case.
- File a Summary Suit : When it comes to recovering your money, a civil remedy is to initiate a legal action in a court with the right jurisdiction. The process of filing a summary suit under sec 37 is known for its speed and efficiency, ensuring a quicker resolution compared to standard lawsuits. This summary suit is a legal process designed for efficient enforcement of rights, where the court can issue a judgement without a lengthy defence process. However, this procedure is only applicable to specific subject matters.
- Legal Violations Connected to non – payment of money :
- Criminal Breach of Trust : When you entrust someone with property or money and they dishonestly use it for personal gain, they commit a criminal breach of trust. In the case of lending money to your friend, the borrowed amount is entrusted to him. If he doesn’t repay the money and misuses it, it becomes a criminal breach of trust. This offence is a violation of the Indian Penal Code, 1860, and is subject to punishment, which can include imprisonment for up to three years, a fine, or both.
- Cheating : if your friend to whom you lent the money fails to repay or denies to repay the money, it amounts to Cheating and it’s a punishable offence under sec 420 of IPC with imprisonment for a term extending upto 7 years and fine.
What a lawyer can do for you ?
When you’re dealing with legal issues, the very first and most important step is to hire a lawyer. A lawyer is your best ally in these situations because they possess the legal expertise and experience needed to navigate the complexities of your case. They will provide guidance tailored to your unique circumstances, considering both the strengths and weaknesses of your case. Having a skilled lawyer on your side is a fundamental requirement that can greatly benefit you in numerous ways.
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