Defaulters in Lending

Dear Sir/Madam,

You can first issue a legal demand notice calling upon her to pay ₹10 lakhs principal along with the agreed interest at 24% p.a., within a specified period. However, since the agreement is only oral, proving the agreed 24% interest may be difficult unless there are supporting materials such as WhatsApp messages, bank-transfer records, acknowledgments, or witnesses. The undated cheque for ₹10 lakhs is important: if it was issued towards discharge of a legally enforceable debt, you may present it after properly filling in the date (with due caution) and, if dishonoured, initiate proceedings under Section 138 of the Negotiable Instruments Act, subject to the statutory timelines.

For recovery of the principal and interest, you can also institute a civil suit for recovery. Your claim for 24% interest should be specifically pleaded and supported by whatever evidence exists; alternatively, the Court may award reasonable interest according to law. The fact that the industrial property stands in her mother's name does not by itself permit you to attach or sell that property, because your friend does not appear to be its owner. If there is evidence that the mother owns the property and is willing to secure the debt, a properly drafted registered mortgage/security document or other legally valid security would be preferable. Do not rely merely on her being the only daughter or expected heir, because an expectancy of inheritance is not presently attachable property.