05 May 2012
As per sec 271D Minimum penalty of loan/deposit accepted in contravention of Sec.269SS shall be levied. Sec.269SS provides that if the amount of loan/deposit or the aggregate amount of such loan/ deposit is Rs.20,000/- or more then the same shall not be taken/accepted otherwise than by an account payee cheque/account payee draft.
You can give such loan by account payee cheque / account payee draft only but not in cash. you can prepare agreement on stamp paper.
06 May 2012
Under Civil Laws, Receipt, Promissory Note, Agreement to repay would be required to prove your case for recovery of debt, if remains unpaid;
06 May 2012
It would be still better if you obtain an undated cheque for repayment of the loan amount, which can be useful for criminal case under section 138 of N.I.ACT if it is dishonoured by his Bank on presentation
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