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I lent money and it has not been returned

Proof of payment alone may not prove it was a loan. We will look for anything showing the person agreed to repay.

What the law says

Papers that usually help

• Transfer records (statement, UPI history, cheque encashment)
  Proves payment and the date.
• Proof of where the cash came from (withdrawal slip or statement) and when it was handed over
  Supports a cash loan.
• Signed agreement or promissory note
  The clearest proof of a loan.
• Complete chat where they accept the debt or promise to repay
  Shows the money was a loan and may affect time limits.
• Records of any part-payments they made
  Part-payment supports the loan and may affect time limits.
• The original cheque and the bank's return memo
  Needed for a cheque-bounce case.
• The cheque (check its date)
  Cheques are generally valid for 3 months from their date.
• Names and contact details of people present
  Can support an oral loan.
• Your written demand and any reply
  Their response may admit or dispute the debt.
• Messages around the time of the payment (them asking for money, saying why they needed it, or promising to return it)
  Without a signed paper, the surrounding messages often show the money was a loan and not a gift.
• A dated list of every amount given and every amount repaid
  Your advocate needs the exact balance claimed.
• Ask your advocate whether to send a written demand or a legal notice
  A demand and the reply (or silence) can matter later.
• Borrower's full name and current address
  Needed for a notice or a case.

Questions Saboot will ask you

• How was the money given?
• Is there anything in writing showing it was a loan?
• When was the money given?
• Since then, has the person paid anything back or admitted the debt?
• Did they give you a cheque for repayment?
• When did you get the bank's cheque return memo?
• Was anyone present when the money was given or discussed?
• Have you asked for repayment in writing?

Sources

• Limitation Act, 1963
• Indian Contract Act, 1872
• Negotiable Instruments Act, 1881

Common situations

• Lent money to a friend and he is not returning it
• Gave cash to a relative, nothing in writing
• Lent money and only have WhatsApp chats as proof
• Borrower admits the debt but keeps delaying
• Lent money over three years ago
• Gave money for a business that never started
• Ex-partner borrowed money and stopped talking
• Paid a deposit to someone for a deal that fell through

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