If you are stuck in such a situation, here is what to do.
Mr. Alok, who had recently moved to the city of Navipur for a new job, decided to take a weekend trip to the nearby hill station of Girinagar with a couple of his new colleagues, Mr. Rohan and Mr. Sameer. During the trip, Mr. Alok lent them approximately ₹20,000 through a digital payment app to cover shared expenses. He trusted them as friends and didn’t think a formal agreement was necessary. However, after returning from the trip, both colleagues started avoiding his calls and messages when he asked for the money back. Feeling disrespected by their behaviour and the breach of trust, Mr. Alok decided that he wanted to pursue legal channels to recover his money and hold them accountable, even if it meant spending more than the amount he was owed.
Advice in such cases
Gather All Evidence: Collect all possible proof of the transaction. This includes screenshots of the digital payment, bank statements, and any chat history (like WhatsApp or text messages) where the loan or repayment was discussed.
Send a Formal Communication: Before taking legal action, send a final, clear message or email demanding the money back. This creates a formal record of your attempt to resolve the matter amicably.
Send a Legal Notice: The next step is to have a lawyer draft and send a formal legal notice to the individuals who owe you money. This notice details the amount owed, the circumstances of the loan, and a deadline for repayment, failing which legal proceedings will be initiated. Often, a legal notice is enough to compel repayment.
File a Civil Suit: If the legal notice is ignored, you can file a civil suit for the recovery of your money in the appropriate court. Based on your evidence, you can file a summary suit which is a faster procedure for recovering money based on written contracts or acknowledgements.
Consider a Criminal Complaint: If you can prove that your friends had a dishonest intention to not repay the money from the very beginning, you may be able to file a police complaint for cheating. However, the burden of proof for this is high.
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 of 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.
Applicable Sections of Law
Such cases primarily fall under civil law but can sometimes have criminal implications.
Indian Contract Act, 1872: An oral agreement to lend and repay money is a valid contract. Failure to repay is a breach of this contract, giving you the right to sue for recovery.
Code of Civil Procedure, 1908: Order 37 of the CPC allows for a “summary suit” in cases of debt recovery where there is clear evidence like a cheque, bill of exchange, or a written acknowledgement. This is a faster legal process as the defendant is not allowed to defend the suit unless they can prove they have a substantial defence.
Bharatiya Nyaya Sanhita, 2023 (BNS): If it can be proven that the borrower had a dishonest intention from the outset and fraudulently induced you to lend money, a criminal complaint can be filed under the provisions for cheating (Section 318 of BNS).
If you are the complainant
Organize Your Evidence: Systematically arrange all digital and physical evidence. Create a timeline of events, from when the money was lent to the attempts made to recover it.
Draft a Legal Notice: Through your lawyer, send a well-drafted legal notice. This is a crucial first step in the formal legal process and shows your clear intent to pursue the matter legally.
Prepare for Court: If the matter proceeds to court, be prepared for the legal process. Your lawyer will file a plaint (the lawsuit document) on your behalf, detailing your claim and the evidence supporting it.
File a Police Complaint (If Applicable): If you and your lawyer believe there is a strong case for cheating, you can approach the police to file an FIR. Provide them with all the evidence that points towards a pre-meditated intention to defraud you.
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 of 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.
If you are the victim
Do Not Resort to Threats: Avoid using threats or aggressive language, as this could be used against you. Keep all communication formal and focused on repayment.
Document Everything: Keep a record of every interaction, including dates, times, and summaries of conversations. If you have a phone call, send a follow-up message confirming what was discussed to create a written record.
Understand Your Rights: You have a legal right to recover money lent in good faith. Do not let the informal nature of the loan discourage you from seeking a legal remedy.
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 of 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.
How the police behave in such cases
Police are often hesitant to register an FIR in cases of friendly loans not being returned. They typically view these as civil disputes and will advise you to approach the civil court for recovery. They may register a complaint only if you provide strong, compelling evidence that suggests a criminal offence like cheating or criminal breach of trust from the very beginning of the transaction. In many cases, they might try to mediate between the parties for an informal settlement before registering a formal complaint.
FAQs people normally have
What evidence is required?
The stronger your evidence, the better your chances of recovery. Key pieces of evidence include:
Bank statements or screenshots of UPI/digital wallet transactions showing the money being transferred.
WhatsApp chats, SMS messages, emails, or social media conversations where the loan or repayment is mentioned.
Any witnesses who were present when the loan was given or discussed.
Any informal written note or IOU, even if not on a stamp paper.
How long will the investigation take?
This depends on the path you take. If you file a criminal complaint, the police investigation timeline is governed by the Bharatiya Nagarik Suraksha Sanhita, 2023 (BNSS), and can take a few months. However, if you file a civil suit, there is no “investigation” by the police. The court process itself can be lengthy, often taking anywhere from several months to a few years for a final decision in a regular civil suit. A summary suit under Order 37 is designed to be much faster, potentially resolving the matter within a year if the defendant has no valid defence.
Advocate Sudhir Rao, Supreme Court of India