If you are stuck in such a situation, here is what to do.

In a complex financial arrangement, Mr. Sharma agreed to help an acquaintance, Mr. Verma, who urgently needed a sum of ₹50 lakhs for his daughter’s higher education. Mr. Verma had a property in the city of Anandnagar but a poor credit history, making it impossible for him to secure a bank loan. A mutual friend, Mr. Gupta, mediated a deal. The proposal was that Mr. Verma would transfer his house to Mr. Sharma’s name. Leveraging his excellent credit score, Mr. Sharma would then take a loan of ₹75 lakhs against that property. As per the agreement, Mr. Sharma would pay the monthly loan instalments for two years, and Mr. Verma would receive the required funds. Mr. Sharma was also to receive ₹15 lakhs from the loan amount for his assistance. The understanding was that after two years, Mr. Verma would repay the amount Mr. Sharma had paid to the bank, and the property would be transferred back to him.

Initially hesitant, Mr. Sharma eventually agreed after persistent requests. However, a critical misunderstanding occurred. Mr. Verma believed he was only providing his property documents as collateral, not actually transferring ownership. Upon discovering the property was no longer in his name, Mr. Verma became distraught. He allegedly created a fraudulent receipt, claiming he had repaid the entire ₹75 lakhs to Mr. Sharma, and forged Mr. Sharma’s signature on it. Using this fake document, he filed a court case, accusing Mr. Sharma of refusing to return the property despite the purported repayment.

Mr. Gupta attempted to mediate, even involving local community leaders, but to no avail. Tragically, about two years ago, Mr. Verma took his own life. Following this, Mr. Sharma attempted to settle the matter with Mr. Verma’s wife and daughter, expressing that he had no interest in keeping the house and only wanted the legal dispute resolved. However, they refused to settle and began holding Mr. Sharma responsible for Mr. Verma’s death. In response, Mr. Sharma filed a counter-case against them for forgery and using a fake document in court. A significant problem now is that for the past several years, Mr. Verma’s family has consistently failed to appear for court hearings, causing extreme delays in the legal proceedings.

Advice in such cases

• Preserve all documentation related to the transaction. This includes the sale deed, loan agreements, bank statements showing the loan disbursal and EMI payments, and any communication like emails, text messages, or letters between all parties involved.
• File a counter-complaint immediately. If you are accused based on a forged document, it is crucial to file a police complaint and a private complaint in court for forgery, cheating, and related offences.
• Engage a forensic expert. A handwriting expert can analyze the signature on the disputed receipt and provide a report to prove it is a forgery. This report is a critical piece of evidence in court.
• Address the non-appearance of the opposing party. Your lawyer can file applications in court to proceed with the case ‘ex-parte’ (in their absence) or request the court to dismiss their case for non-prosecution.
• 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 complex cases involve both civil and criminal aspects of the law. The following sections from the new Indian legal framework are relevant:

• Section 318 of the Bharatiya Nyaya Sanhita, 2023 (BNS): This section deals with the offence of cheating. If it can be proven that Mr. Verma had a dishonest intention from the beginning, this section may apply.
• Section 335 of the Bharatiya Nyaya Sanhita, 2023 (BNS): This section defines forgery. The act of creating a false receipt with a forged signature falls directly under this provision.
• Section 337 of the Bharatiya Nyaya Sanhita, 2023 (BNS): This section pertains to the offence of using a forged document as genuine, which is what Mr. Verma’s family is allegedly doing by presenting the fake receipt in court.
• Bharatiya Nagarik Suraksha Sanhita, 2023 (BNSS): The procedural aspects of the criminal case, including the investigation by the police and the trial in court, are governed by the BNSS. It also provides mechanisms to deal with accused or complainants who do not attend court proceedings.
• Civil Laws: The civil suit would be governed by the Code of Civil Procedure, the Transfer of Property Act, and the Specific Relief Act, which deal with property ownership, transfer, and contractual obligations.

If you are the complainant

If you are in the position of the person who originally filed the case (like Mr. Verma’s family), and you believe a genuine repayment was made:

• Gather all possible proof of repayment. This would include bank transfer records, witness testimony, or any other communication acknowledging the payment. A simple receipt, especially if its authenticity is challenged, may not be sufficient.
• Attend every court hearing. Failing to appear in court weakens your case significantly and can lead to its dismissal. It shows a lack of interest in pursuing the matter.
• Be open to mediation and settlement. Litigation can be a long and expensive process. If a reasonable settlement is offered, it should be seriously considered to achieve a faster resolution.
• 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

If you are in Mr. Sharma’s position, facing a lawsuit based on false claims and forged documents:

• Immediately challenge the authenticity of the evidence. Your lawyer must file a formal application in court stating that the receipt is forged and should not be considered as evidence.
• File a criminal complaint. Do not wait. Go to the police and file an FIR for forgery and cheating. If the police are hesitant, your lawyer can file a private complaint before a Magistrate.
• Push for the dismissal of their case. Your lawyer should file an application to dismiss the civil suit filed against you on the grounds of non-prosecution, citing the continuous absence of the other party.
• Gather your own evidence. Systematically collect all documents that prove your side of the story: the property transfer deed, the loan documents from the bank, and your bank statements showing you are paying the EMIs.
• 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

Initially, the police might view such a matter as a “civil dispute” concerning property and money, and they may be reluctant to file an FIR. However, when presented with clear prima facie evidence of a criminal act like forgery (for example, a forged signature on a receipt used to file a court case), they are obligated to register a case under the relevant sections of the Bharatiya Nyaya Sanhita (BNS). The police investigation will likely involve sending the disputed document to a Forensic Science Laboratory (FSL) to get an expert opinion on the authenticity of the signature by comparing it with admitted signatures of the person.

FAQs people normally have

Can the case against me be dismissed if the other party doesn’t show up?
Yes. If the plaintiff (the person who filed the case) consistently fails to appear for hearings without a valid reason, your lawyer can request the court to dismiss the case for “default” or “non-prosecution.”

What happens in the forgery case I filed?
The criminal case for forgery will proceed independently of the civil case. The police will investigate, collect evidence (including the forensic report), and file a chargesheet if they find sufficient evidence. The court will then conduct a trial.

Can I get the property back in my name and sell it?
As long as the property is the subject of a court case (lis pendens), selling it can create further legal complications. It is advisable to wait until the court has decided the matter in your favour. Once the civil suit is dismissed and your ownership is confirmed, you can deal with the property as you wish.

What evidence is required?

The most crucial pieces of evidence in a case like this include:

• The registered Sale Deed or Transfer Deed showing the property was legally transferred to your name.
• The loan agreement and sanction letter from the bank.
• Bank account statements showing the disbursal of the loan amount and the regular payment of EMIs by you.
• The alleged forged receipt, which will be the primary subject of the forensic investigation.
• A report from a certified handwriting expert confirming the forgery.
• Any written or electronic communication (emails, WhatsApp chats) between you, the deceased, and the mediator.

How long will the investigation take?

The duration of such cases in India can be unpredictable. The civil case is delayed by the non-appearance of the other party. While this can be frustrating, it can also be a ground for getting their case dismissed. The criminal investigation’s length depends on factors like police efficiency and the time taken for the forensic lab to provide its report, which can sometimes take several months. A proactive lawyer can file applications to expedite the process, but one should be prepared for a legal battle that could span a few years.

Advocate Sudhir Rao, Supreme Court of India