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Can I claim interest on the money given to my friend

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I gave 18 lakhs to my friend for his export business via a bank account. For assurance I took 5 cheques equivalent to 18 lakh. And 10 blank documents paper nothing written on it just signature. He assured me profit about 2% monthly. And he exported goods to Qatar worth rupees 40 lakhs to his Qatar firm. As per RBI norms within 8 months he had to regularize with payment. He didn’t bring back the money yet. He didn’t give me a profit share and did not return the principal amount. 

He didn’t have any fixed asset in India. How do I can pressurize him. Other than cheque bounce case can I report any other case. Like he took INR to Qatar not to bring back kind money laundering. He says he met loss and can’t give back his family financially. We are both from Kerala and now he has moved to Kolkata. How I can pressurize him. He is aware about cheque case but he thinks it will take many years to compete. I gave him from overdraft I was unable to make payment towards my OD.

Question from: Kerala

You should pursue the cheque bounce case. However, it may take time but it may convict your friend for dishonour of cheque and he will pay double the amount mentioned in the cheques. This is the sole option you have to resort to legal remedy. You have not made a written agreement for sharing profit in the business and his business is also lacking legal formalities.  

You can file a civil suit for recovery of money

You have the evidence that your friend has borrowed money from you. The bank statement is sufficient to file a civil suit for recovery of money. In absence of business or commercial agreement you cannot sue your friend  for the payment of interest upon the money. If you would have contracted for sharing profit in the business then you have the right to claim interest. You have the right to recover the amount you paid and a simple interest under the provisions of Code of Civil Procedure. The court may grant payment of simple interest on the whole amount. But you must file a civil suit simultaneously to the cheque bounce case.

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