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Execution/registering a stamp paper

31 December 2015

I had a question.

I am entering into a money-lending contract with someone. They are willing to give it to me on a stamp paper (with their sign).

What do i need to do so that the stamp paper can be a legal proof?

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4 Replies

DISHA SHAH (professional) (1618 Points)
Replied 08 January 2016

Money lending contact between individuals without their registeration of being lender is not valid at all , even if you done contract via stamp paper , there is no legality in that

Regards

Ddshah

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sathyanarayanan (advocate) (62 Points)
Replied 26 January 2016

The term money lender denotes a person who lends money as his regular business, he only needs a licence.if a person gives money to few known people they won't need licence.no registration is required.

Ra Valencia (5 Points)
Replied 31 January 2016

thank you all.

Yes, I want to lend money to a few friends, but I also want to be legally solid, if they do not pay. This has happened to me.

CA CMA CS Ram Pavan Kumar Melam (CA) (6980 Points)
Replied 01 February 2016

In case of lending you have to take a demand promissory note / promissory note. In case of a contract, any party to the contract can approach the court for violation or non-compliance to the terms of the contract. Money lending itself is not a contract. If it has other activities such as hirepurchase etc. you can take an agreement from him.