Can I sue someone who borrowed money from me in India?
Asked by: Miss Abigale Schoen PhD | Last update: January 25, 2026Score: 4.9/5 (23 votes)
If someone borrowed money from you and committed a breach of trust, you can file a criminal suit. Under Section 420 of the Indian Penal Code (IPC), you can sue them for fraud if they deceived you to get the money. Additionally, you can file a case under Section 406 of the IPC for criminal breach of trust.
How to get borrowed money back legally in India?
You can file a civil suit for recovering the money he owed through promissory note or loan agreement or even there is no agreement per se. You can do so under Order 37 of CPC which allows the lender to file a summary suit. You can file this suit in any high court, City Civil Court, Magistrate Court, Small Causes Court.
Can you sue someone for borrowing money?
Yes, you can sue someone for money you loaned to them. A verbal agreement is usually enforceable. You'll have to be able to prove the terms of the agreement and hopefully you can do that through your bank records and text messages.
What to do if someone doesn t return borrowed money?
If things don't work out even after serving the Letter of Demand, one is advised to file a suit. A creditor can commence civil proceedings against the debtor for recovery of debt. This approach is financially viable when the owed amount is substantial and the debtor possesses the means to repay but refuses to do so.
Is money lending a crime in India?
The draft bill further states: "Any lender who lends money, whether digitally or otherwise, in contravention of the law shall be punishable with imprisonment for a term not less than two years, which may extend to seven years, and a fine not less than ₹2 lakh, up to ₹1 crore.
Understanding: winning a lawsuit (getting a judgment) vs. getting paid
What is the money-lending act in India?
AN. ACT. to provide, in the interest of the general public, for the regulation of money-lending transactions and for the registration of money-lenders, and for matters connected therewith, or incidental thereto.
What is financial crime in India?
Financial crime is an umbrella term which refers to any illicit act by which the perpetrator illegally acquires the property of the victim. There are several categories and multiple scales of financial crime, and both perpetrator and victim can be economies, governments, businesses, or individuals.
What to do if someone is not returning your money in India?
You can file a complaint with the police if you believe that someone has unlawfully withheld money owed to you. Provide the police with all relevant details, including evidence of the debt and any attempts you've made to recover the money through negotiation or legal means.
What to do if someone keeps borrowing money from you?
Say, “I'm sorry, but I can't give you a loan.” When the person asks, “Why not?” just repeat your statement. Eventually, your friend or family member will stop asking. OFFER OTHER AID.
Can you go to the police if someone owes you money?
It is a civil matter, not criminal, so the police are not going to get involved. You have to sue and go after her and get a judgment. If she does not pay, you can then enforce it and go after money or assets.
Can you sue someone who promised you money?
The short answer is yes, you may have a claim for someone who broke a promise to you. Now, depending on the nature of that promise, we may have different types of the cause of action that could be brought. The most common that I see is a breach of contract.
What is the lowest amount you can sue someone for?
While most courts don't have a strict minimum amount you can sue for, the practical minimum is usually determined by the small claims court filing fee, which can range from around $25 to $50, meaning you would need to be suing for at least that amount to make it worthwhile to file a lawsuit; however, the maximum amount ...
Can you take legal action against someone in another country?
It is sometimes possible to sue someone for disputes that occur overseas, but the legal feasibility and process can be complicated and depend on various factors including the nature of the dispute, the jurisdictions involved, the specific laws that apply, and the treaties or agreements between the countries in question ...
Can I sue someone who owes me money in India?
If someone is not paying you back, you can send a formal demand notice and consider filing a civil suit or seeking an out-of-court settlement through arbitration or conciliation.
What happens if you don't pay back borrowed money?
Failing to pay could result in your account going into default, the balance being sent to collections, your lender taking legal action against you and your credit score dropping significantly.
How do you prove someone borrowed money?
It's a good idea to create a contract for money loaned, money owed, or any personal property you lend. Other ways to show evidence can include emails, texts, money transfer receipts, bank account transfer history, etc.
When someone borrows money and doesn t return it?
If you can't resolve the loan dispute on your own, consider legal action. Unfortunately, that's not a reality for everyone. When clear, consistent payment reminders and communication don't work, lenders may consider legal action to collect an unpaid loan. Seek legal advice before proceeding with any legal action.
What to do if someone has taken money from you?
Contact your bank or building society straight away if you're worried someone might have access to your account. For example, if your: card or security details have been lost or stolen. statement shows payments you don't recognise.
Is it illegal to borrow money from someone?
Yes, it is. It is legal to lend money, and when you do, the debt becomes the borrower's legal obligation to repay. For smaller loans, you can take legal action against your borrower if they do not pay by taking them to small claims court. This may seem harsh, but it's important to understand up front.
Can I file a police report if someone owes me money in India?
FIR can be lodged only when there is an allegation of commission of a non-cognizable offence. Not returning borrowed money is not an offence at all. So an FIR cannot be lodged for it. A civil suit can be filed to recover the money.
What to do if someone refuses to refund money?
- Contact your state attorney general or state consumer protection office. ...
- Contact a national consumer organization. ...
- Contact your local Better Business Bureau The Better Business Bureau is made up of organizations supported by local businesses. ...
- File a report with the FTC.
Can I get my money back from fraudsters in India?
Yes, your bank might refund your money if you are the victim of a scam. However, some conditions must be fulfilled. First, the bank must be notified as soon as you know about the scam. The longer you take to report the scam, the lower the chance that the bank will be able to refund your money.
Where do I report financial frauds in India?
Note: If you have already lost money due to financial fraud or are a victim of cyber-crime, please report at cyber crime helpline number 1930 or website https://www.cybercrime.gov.in.
What are the top 3 financial crimes?
Financial crime is a broad term that has serious effects on individuals, businesses and whole economies! Financial crimes examples include money laundering, insider trading, and embezzlement. A 2024 report found that criminals stole about $3.1 trillion in 2023 through illegal activities and financial crimes.
How do I report someone to Interpol?
Criminal activity should be reported to your local or national police. INTERPOL does not carry out investigations or arrest people; this is the responsibility of national police. Do you have information on a wanted criminal?