Hyderabad court orders repayment of Rs 11 lakh hand loan after family dispute turns legal

Hyderabad: With a hand loan dispute within a family turning into a legal battle, a local court has ordered 36-year-old Syed Rafiq, a resident of Borabanda, to repay Rs 11.88 lakh to his maternal uncle, Md Shabbeer, ending a nearly decade-long tussle over the hand loan.

Shabbeer, now 58, told the court he had lent Rs 9.3 lakh to Rafiq in 2012 to help him set up a business. What began as a gesture of support within the family soon spiralled into a courtroom fight when Rafiq failed to return the money. Despite signing an acknowledgment in front of police in 2013, Rafiq never repaid the amount.

Instead, he denied taking any money and claimed that the documents were forged and the acknowledgement letter was signed under police pressure, allegations the II senior civil judge, City Civil Court, Hyderabad, found to be baseless. The judge pointed out that Rafiq never filed any formal complaint of coercion and failed to produce any evidence to support his claims. Witnesses included family members, Rafiq’s own brother, and Shabbeer’s younger brother, who confirmed the loan transactions.

The court also took note of a letter signed by Rafiq, promising to repay the debt by Oct 2014. His refusal to accept a legal notice served in 2015 further weakened his defence. Rafiq argued that the suit was time-barred and questioned the lack of income tax documentation. But the court ruled that the 2013 letter acknowledging the debt effectively reset the limitation period. As for the source of funds, Shabbeer explained that the money was arranged through personal means, including a chit fund and loans from family and friends.

Calling Rafiq’s defence “an attempt to escape liability,” the court concluded that Shabbeer provided sufficient proof. The judge ordered Rafiq to pay Rs 11,88,924 along with interest, 12% annually from the date of filing the suit until the date of decree, and 6% thereafter, plus legal costs. What began as a family favour has ended in a legal reminder that even hand loans between close relatives can come back with interest.