What legal action can I take to recover my loan?
I had given Rs. 3,00,000 as a loan with interest to a person who promised to repay my money along with interest by the stipulated date. The borrower and his wife had given an undertaking in writing on plain paper that if the loan was not repaid, their house would become my property. However, he has not repaid my money, and the stipulated date passed 2 years ago. He, along with his family, has shifted to an unknown location, locking the house. Please advise me.
A plain paper agreement promising to transfer property against loan default is not legally valid in India as it requires proper registration under the Registration Act, 1908 to be considered a legitimate mortgage deed. Your best recourse is to file a civil suit for recovering the loan amount of Rs. 3,00,000 with interest, alongside potentially filing a criminal complaint under Section 420 IPC for cheating if you believe there was fraudulent intent from the start.
An informal undertaking on plain paper to transfer property in case of loan default is not legally enforceable as it would be considered a mortgage agreement, which requires proper registration under the Registration Act, 1908. You should file a civil suit for recovery of the loan amount along with interest, and you may also consider filing a criminal complaint for cheating under Section 420 of the Indian Penal Code if there was fraudulent intent from the beginning.
Sir, if that person is not returning your money then you may consider sending a legal notice for money recovery over his WhatsApp mobile number or an email with the help of an expert lawyer who will assist you with to file a civil suit in court of law. For further legal assistance contact us on our helpline number.
Related Questions
24x7 Help
If we fall short of your expectation in any way, let us know
Payment Trust
All refunds come with no questions asked guarantee
