Property

Dear Sir,

If it was a one-time friendly/colleague loan:

It is not illegal to lend money privately to a friend or colleague, as long as it was not done as a regular business or with the intent of earning profit from multiple borrowers.

If he refuses to pay reasonably, your father can file a civil recovery suit:

Under Order 37 of the CPC (summary suit for money recovery) if there’s a written acknowledgment/promissory note.

Otherwise, a regular money recovery suit in civil court.

However, note the limitation period — 3 years from the date the payment became due or last acknowledgment.

If payments or acknowledgments were made in between (like small interest payments), the limitation restarts from that date.

Hello, 

Is this transaction documented? If not it is difficult. There are other ways to deal with this but for that we need to discuss the matter in depth. Feel free to connect through OLQ for further discussions. 

Friendly loan is permitted in law, however, doing business of lending without proper license from RBI is illegal. It is wise to collect the money and interest as person is ready to pay with interest otherwise your claim for recovery is barred by limitation. Being son only you have no right to file claim on behalf of father unless you obtain letter of administration which too is time consuming.  

Dear Sir, as per your query,

1. Collect all evidence — any written agreement, receipt, message, bank proof, or any acknowledgment of debt.

2. Send a formal legal notice through an advocate demanding:

A. The full principal + interest as per agreement.

B. Payment within 15 days.

3. If he still refuses, consult a local civil lawyer to file a recovery suit. 

For further details & clarification, feel free to contact our OLQ Team for a detailed discussion.