People lend money because they have the confidence that the borrower will duly return it. But it is important for the lender has to make a gentle reminder about the repayment of loan often. The lender may suggest a certain plan to the person who got money for repayment. Even then if the person has not fully returned the money then the lender has to send a letter stating the date of loan,
the exact amount borrowed and also the repayment terms. The letter should be certified and should demand a response. If none of the steps works out, then he has to consult a lawyer and file a suit against the person who has not repaid.
The lender should lend the money only after signing the promissory note or the loan agreement which consist of the terms and conditions. In case of default in the payment of money, the lender can approach the court and file a civil suit for recovery of money or a criminal suit for fraud/ breach of the agreement.
The lender can file a civil suit for recovering the money he owed through promissory note or loan agreement. He can do so under Order 37 of CPC which allows the lender to file a summary suit. He can file this suit in any high court, City Civil Court,
Magistrate Court, Small Causes Court. This suit consists of an important declaration stating the specific relief the lender pleas and the relief should not be beyond the ambit of the order as final relief.
The first step is drafting the summary suit and then it should be summoned to the person who borrowed money. The court requires certain documents to be produced before them along with the copy and summons. Once the suit is filed,
the defendant will be asked to appear before the court within 10 days. If the person fails to appear, the lender has to produce the summons that had been sent earlier and then the,
court orders him to send another summon. If the person has any defence he can claim before the court, if not the court assumes the lender’s allegation as true and rewards the judgment accordingly.
