money lending
6 months ago
hello sir/madam - my brother borrow 58000 from his friend and wrote stamp paper of 100 . on this stamp paper he wrote that if i dont pay this amount my friends have all rights to get my bike as collateral on 20 oct . and then when we pay all amount i will get my bike back. what to do now. my family have no idea about it. my friend told me this.
A.Dear Client,
A mere agreement on a Non-Judicial Stamp Paper without collateral security by way of a promissory note or with a post-dated cheque or in the absence of an Affidavit sworn before the Judicial Magistrate supporting that piece of document, got no legal sanctity and enforceability under law. If the matter is litigated for any reason, both the owner of the vehicle and the lender would face legal consequences apart from other harassment.
A mere agreement on a Non-Judicial Stamp Paper without collateral security by way of a promissory note or with a post-dated cheque or in the absence of an Affidavit sworn before the Judicial Magistrate supporting that piece of document, got no legal sanctity and enforceability under law. If the matter is litigated for any reason, both the owner of the vehicle and the lender would face legal consequences apart from other harassment.
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A.Dear Client,
In India, the use of stamp papers and written agreements is a common practice for documenting financial transactions. First, carefully review the agreement that your brother made with his friend. Make sure you understand the terms and conditions, including the repayment date and the conditions for returning the bike. If an extension is needed or if your brother is unable to repay the entire amount on the specified date, he should propose a repayment plan that both parties can agree on. The stamp paper agreement has legal significance, and if your brother fails to honor the agreement, his friend may have the right to claim the bike as collateral.
In India, the use of stamp papers and written agreements is a common practice for documenting financial transactions. First, carefully review the agreement that your brother made with his friend. Make sure you understand the terms and conditions, including the repayment date and the conditions for returning the bike. If an extension is needed or if your brother is unable to repay the entire amount on the specified date, he should propose a repayment plan that both parties can agree on. The stamp paper agreement has legal significance, and if your brother fails to honor the agreement, his friend may have the right to claim the bike as collateral.
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