One of my clients recently had a case which I am explaining below and if you are stuck in such similar situation, here is what to do.

Note: Due to attorney-client privilege, I cannot disclose complete case details or identify the actual parties involved. However, I am sharing the essential facts and legal approach so that if you find yourself in a similar situation, you can understand the available solutions and legal remedies.

My client Rajesh Kumar from Andheri, Mumbai, had lent Rs. 12,000 to his close friend Amit Verma who works in the merchant navy. Amit urgently needed money while his ship was docked at Kandla Port, claiming his bank cards weren’t working due to server issues. He promised to repay within 10 days once he returned to shore. Rajesh, being a helpful friend, immediately transferred the amount via UPI. However, after the promised period, Amit completely stopped responding to calls and messages. When Rajesh tried contacting mutual friends, he discovered Amit had been avoiding several people who had lent him money. What started as helping a friend in distress turned into a case of deliberate fraud and breach of trust.

Advice in Such Cases

Consult with Lawyer: The very basic and important step to start is talk to Lawyer / advocate. You should not hesitate in paying his consultation fee i.e. might be in range of Rs. 10,000 to 50,000 depends case to case. He is helping you in this situation to come out. He is expert in the domain and can help you explain the procedure which you might have never explored. A good lawyer can get the issues resolved much faster than you think.

Document all communications including WhatsApp messages, call logs, and bank transfer receipts. Send a legal notice through your lawyer demanding repayment within a specified timeframe. Consider filing a case under relevant sections if the borrower continues to ignore legal notice. In cases involving multiple victims, coordinate with other affected parties to strengthen your case.

Applicable Sections of Law

Under the Bharatiya Nyaya Sanhita (BNS) 2023, Section 316 deals with criminal breach of trust where someone dishonestly misappropriates property entrusted to them. Section 318 covers cheating by inducing someone to deliver property under false pretenses. Section 61 addresses dishonestly inducing delivery of property. Under the Bharatiya Nagarik Suraksha Sanhita (BNSS) 2023, Section 223 allows magistrates to try cases summarily for offences punishable with imprisonment up to two years. These provisions collectively provide a strong legal framework for money recovery cases involving breach of trust and fraudulent non-repayment.

Relevant Legal Precedents

Various High Courts have consistently held that borrowing money with no intention to repay constitutes cheating under criminal law. The Supreme Court has established that when someone takes money promising repayment and then deliberately avoids the lender, it shows dishonest intention from the beginning. Courts have also ruled that electronic evidence like WhatsApp messages and bank transfer details are admissible proof of lending transactions. The legal principle emerging from numerous judgments is that civil disputes can become criminal matters when fraud or dishonest intention is established.

If you need specific judgement references for your case, you can contact Adv. Sudhir Rao on his helpline numbers for detailed legal research and citations.

If You Are the Complainant

• Gather all evidence including bank transfer receipts, screenshots of messages, and call logs showing the lending transaction and subsequent demands for repayment
• Send a formal demand notice through registered post or email clearly stating the amount borrowed, terms agreed upon, and deadline for repayment
• File a police complaint under appropriate sections of BNS if the borrower continues to ignore demands and shows dishonest intention
• Consider filing a civil suit for money recovery along with interest and damages if the amount is substantial
• Maintain detailed records of all attempts to contact the borrower and their responses or lack thereof

If You Are the Victim

• Immediately document your version of events while details are fresh, including dates, amounts, and circumstances of the lending
• Preserve all electronic evidence including screenshots, call recordings if legally obtained, and bank transaction details
• Try to resolve the matter amicably first through mutual friends or family members before taking legal action
• Contact other potential victims as such cases often involve multiple lenders being defrauded by the same person
• Be prepared for a potentially lengthy legal process and consider the cost-benefit analysis of pursuing legal action versus the amount involved

How the Police Behave in Such Cases

Police typically treat money lending disputes as civil matters initially and may be reluctant to register FIRs. However, when clear evidence of cheating or criminal breach of trust exists, they are legally bound to register complaints. Officers often suggest trying civil remedies first. In cases involving substantial amounts or multiple victims, police show more interest. They may attempt mediation between parties before proceeding with formal investigation. Providing comprehensive documentary evidence significantly improves chances of FIR registration.

FAQs People Normally Have

Q: Can I file a criminal case for non-repayment of borrowed money?
A: Yes, if there’s evidence of dishonest intention or fraud from the beginning, criminal cases can be filed under BNS sections.

Q: What if I lent money without any written agreement?
A: Electronic evidence like bank transfers, messages, and call logs can prove the lending transaction even without written agreements.

Q: How much does it cost to pursue legal action?
A: Legal costs vary but typically range from Rs. 25,000 to Rs. 1,00,000 depending on case complexity and duration.

Q: Can I claim interest on the borrowed amount?
A: Yes, reasonable interest and damages can be claimed in civil suits for money recovery.

What Evidence Is Required?

• Bank transfer receipts or cash withdrawal records showing money given to borrower
• WhatsApp messages, SMS, or emails discussing the loan terms and repayment promises
• Call logs showing attempts to contact the borrower for repayment
• Screenshots of social media interactions related to the lending
• Witness statements from people who knew about the lending transaction
• Any written acknowledgment or promissory notes if available
• Evidence showing borrower’s capacity to repay but deliberate avoidance

How Long Will the Investigation Take?

Police investigation typically takes 2-6 months depending on case complexity and cooperation from the accused. If charges are filed, court proceedings can extend from 6 months to 2 years for summary trials. Civil suits for money recovery generally take 1-3 years depending on court workload and case disputes. Mediation or settlement negotiations can resolve matters within 2-6 months if both parties cooperate.

Advocate Sudhir Rao, Supreme Court of India