Loan Given But Now No Repayment By The Party

Don’t worry. Merely showing an entry of payment by self-cheque does not automatically prove repayment of the loan. Burden of Proof Lies on the Borrower: You have advanced ₹25 lakhs through RTGS, which is a clear, documented banking transaction. If the borrower claims that you withdrew the same amount from his account using a self-cheque, the burden of proof is entirely on him to establish that: a) The cheque was actually encashed by you, and b) The money was received by you in repayment of the loan. c) Mere entries or assertions are not sufficient in law. Issue a Legal Notice for Recovery: You should issue a formal legal notice demanding repayment of the loan amount along with interest (if applicable). This puts your claim on record and calls upon the borrower to substantiate his defence with proof. Self-Cheque Entry Is Not Conclusive Evidence : A self-cheque only shows withdrawal from the borrower’s account; it does not prove delivery or receipt of money by you, unless supported by independent evidence such as acknowledgment, signature, CCTV footage, or contemporaneous documents. Civil and Criminal Remedies: Depending on facts, you may pursue: a) Civil recovery proceedings for the loan amount, and b) In appropriate cases, criminal action if false claims or cheating are involved. Limitation and Strategic Considerations: Please keep in mind the limitation period, documentation available, and the overall strategy before initiating proceedings. It is strongly advised to consult an advocate with all documents (RTGS proof, communications, bank statements) before proceeding, so the matter is handled correctly from the outset. — Advocate Prakhar Gupta (Advocate in Kota)

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