Question
If my family takes money from a close relative on interest, and that relative can’t pay the interest, we pay the money with interest. But now, even after 3 years, that relative is not paying us the money. We don’t have any documents about the money. Can we do anything against that relative? Can I sue?
Answer
If your family lent money to a relative with interest, but there is no formal document or written agreement, it can be challenging to prove the debt in court. However, you still have some options:
- Witness Testimony: Even without a written document, if there were witnesses to the transaction or any verbal agreement, you can use their testimony to support your case. This can help establish the existence of the debt and the terms of repayment.
- Bank Records: If any payments were made through a bank transfer or any form of documented payment (e.g., cheque), those records can serve as evidence to back up your claim.
- Legal Action: If the debt is significant, you can file a civil suit for recovery of the money. You will need to present as much evidence as possible, such as witness statements, bank records, or any communication between you and the relative about the debt. While the lack of a written agreement complicates things, the court will still consider the circumstances and any available evidence.
- Debt Recovery through Arbitration: If both parties agree, you can attempt to resolve the matter through family or community arbitration. This process can sometimes be more effective in resolving family-related issues amicably.
- Consult a Lawyer: It is advisable to consult a lawyer to assess the strength of your case and guide you through the legal process, especially without formal documentation.