I lent 5 lakh to my friend by bank transfer but we did not sign any agreement. He is not repaying. Can I recover the money?
PR Asked by Priya Sharma from India
Quick Answer
An oral agreement to repay a loan is valid under Section 10 of the Indian Contract Act, 1872, and the bank transfer records serve as proof of the loan transaction.
Detailed Legal Analysis
An oral agreement to repay a loan is valid under Section 10 of the Indian Contract Act, 1872, and the bank transfer records serve as proof of the loan transaction. Send a legal demand notice under Section 80 of the Civil Procedure Code if the defendant is the government, otherwise a normal demand notice, asking for repayment within 15 days.
If he does not pay, file a civil suit for recovery of the amount under Order XXXVII of the Civil Procedure Code as a summary suit for a liquidated amount, which is faster than an ordinary suit. The bank statement, UPI transaction reference, and any WhatsApp or email communications acknowledging the loan are strong evidence.
You can also file a complaint for cheating under Section 415 and 420 IPC / Sections 317 and 318 BNS if he never intended to repay. Limitation for filing a recovery suit is three years from the date the loan became due under Article 137 of the Limitation Act, 1963.
Legal Provisions Referenced
Verify the current statutory text at India Code (the official repository of Indian legislation) or the Legislative Department. This answer is general legal information, not advice on your specific matter.
Disclaimer: AI-generated for educational purposes only. Does not constitute legal advice. Consult a qualified practitioner.