Recovery of money lent to friend - legal procedure

Legal Recovery of Personal Loans:

Money lending between friends/individuals creates a legal debt relationship recoverable through civil courts.

Evidence Available in Your Case:

• Bank Transfer Records: Strong evidence of money transfer
• WhatsApp Messages: Admissible as electronic evidence under Evidence Act
• Promise to Repay: Creates legal obligation to return
• Acknowledgment: Any written/digital acknowledgment

Legal Procedure for Recovery:

1. Legal Notice:

• Formal demand notice under Section 80 CPC
• 30-day notice period for payment
• Prerequisite for filing suit

2. Civil Suit for Recovery:

• File money recovery suit under Order 37 CPC
• Jurisdiction: Court where defendant resides or loan was given
• Limitation: 3 years from due date or last acknowledgment

3. Summary Suit Procedure:

• Faster procedure for debt recovery
• Defendant must file written statement within 10 days
• If no defense filed, decree passed summarily

Court Fees and Costs:

• Court fee: 7% of claim value (₹21,000 for ₹3 lakhs)
• Lawyer fees: ₹25,000-₹50,000 depending on complexity
• Process fees and miscellaneous costs

Remedies Available:

• Simple Decree: Order to pay principal amount
• Interest: 6-18% per annum from due date
• Costs: Legal costs and court expenses
• Execution: Attachment of assets if decree not complied

Execution Options:

• Attachment of bank accounts
• Attachment and sale of movable/immovable property
• Arrest and detention in civil prison (rare)
• Garnishee proceedings against third parties

Timeline:

Legal notice: 30 days, Summary suit: 3-6 months, Regular suit: 1-2 years, Execution: 6 months to 2 years

Alternative Dispute Resolution:

• Mediation through mutual friends/family
• Lok Adalat proceedings for amicable settlement
• Arbitration if both parties agree

For expert legal assistance in money recovery cases, contact Metis Law Chamber for effective debt recovery solutions.