How to collect the invested amount at the earliest?

Sir, I,aged 62, middle class,worked in small pvt. firms,retired in 2012, got PF 2 lacs. I saw an Ad"for 1 lac investment I pay monthly Rs. 5000 as profit." Because of no job, I invested 1 lac on 26.12.2013. He gave an agreement on Rs.100 stamp paper, a cheque dated 24.12.2014 for one lac as security. He paid monthly in 2014(total 56000). Believing him I invested another lac on 24.12.2014. He gave an Agreement on Rs.100 Stamp Paper, a cheque dated 24.12.2014 for 1 lac as security. After this investment, he did not pay monthly. After several requests, like a beggar, he paid 86,000/-. Now he is saying " I have no money". I request you to kindly advice me the best way to collect the amount at the earliest. I am thankful to you my lifelong. yours sincerely bhaskar 

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Making a written agreement is important as it helps both the parties to understand the terms. But
to ensure that the other party complies with the agreement, it is important to ensure that the
agreement is made on a stamp paper. A stamp paper agreement has given legitimacy to your
investment and is also legally enforceable.
A stamp paper agreement is of several types and one in this particular case should be of the non-
judicial type which, as the name suggests, is used for sale, purchase or any other type of commercial
agreement. Stamp duty is calculated differently for different documents. In the present case, it is a
type of contract which has been pre determined and the subject matter of the agreement is not
dependent of the market value of anything. Hence it falls under the first category of the different
ways of calculating stamp duty.1 Therefore the agreement made on Rs 100 stamp paper is valid and
legally enforceable.
In the case of Ramesh Kumar Gupta v. Kshetrimayum Ibohal Singh2the High Court of Gauhati
discussed that a sale agreement was not valid as it was not executed on a non- judicial stamp and
held that a agreement cannot be enforced unless it is found to be genuine. Thus you can show that
your agreement was genuine and legally enforceable.
In addition to it, if you can show that the advertisement was published by a Non-banking Institution
which is registered under the RBI Act, you can refer the matter to the Banking Ombudsman. For this
you will have to identify the status of the entity which released the advertisement. Only if this entity
is registered as a non-banking financial institution with the RBI can you register a complaint against it
to the Banking Ombudsman.
Further, law operates on the principle of justice, equity and good conscience. Specific Performance is
one such remedy available based on the Principle of equity.3 It means that the Court can direct the
other party to perform his part of the contract if one of the parties have perfomed their part of the
contract. This principle was laid down in the case of Bala Krishna v. Bhagwan Das.4 In this case,
your part of the contract was to deposit 1 lakh for investment which you have done. Under no
circumstances can the person refuse to pay, as under the principles of equity he will be directed to
pay you, if nothing, atleast the amount you invested. Therefore it is advised that you must initiate
legal proceedings against him at the earliest for the specific performance of the contract. If he is
claiming to have “no money”, he can be forced to pay from his shares or assets or any other
property which he might possess.
2 (2009) 2 GLR468
4 AIR 2008 SC 1786

Answered on April 25, 2016.
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