Bhabesh, An out of court settlement is advisable in this case.So, kindly make an effort to reach such a settlement.The reason is simple.Legal battles are often long drawn out.
You can always file a lawsuit against him in court. A cheque payment evidence should suffice in this case for you to file the case against the borrower. The burden of proof will fall on him (current borrower) to prove any xyz reasons like (consider hypothetically) the money was not loaned to be returned to the lender but was actually a settlement of an earlier loan that the current borrower had loaned the current lender.And this won't be easy on him and the verdict will be in your favour. Several sections of Indian Contract Act 1872 AD could be applied in your case.I am no lawyer but i discussed this matter with a few lawyer friends who advised me this. All the best. ~ Arindam
