Tamasuk / Transaction Deed/Lenden

A transaction is defined as the giving and taking of things, which is ordinarily the work of taking or giving a loan, also known as the lending and borrowing business. Tamasuk is, in a nutshell, the familiar and social life in which one person’s act and transaction to others.

In the absence of a special act governing Nepalese law, the ordinary law of the 2017 National Civil Code will be enforced.

Clause 17 of the 2017 national civil code, which contains the arrangements of transaction pattern related interdependence, is typically used to regulate the act of transaction pattern.

Things to consider when drafting a tamasuk, reimbursement, or other type of transaction deed

How do I write a repayment deed?

The agreement must be in writing.

The transaction agreement will be unenforceable until clause 476 of the 2017 National Civil Code is codified. This clause necessitates written evidence of the transaction deed. Bills, cheques, vouchers, receipts, and reimbursements are examples of transactions that must be thoroughly understood. There is no provision for going to court if a future dispute arises that is not resolved in writing.

A stamp from the ward or rural municipality is required.

You must go to the ward office to have the tamasuk stamped if you are lending or borrowing money from someone. The tamasuk transaction must be duplicated three times. The lender keeps one copy of the transaction tamasuk, the borrower keeps one, and the ward office keeps one. If a ward office transaction exceeds NPR 50,000, it must be registered in the rural municipality.

What should be written?

Clause 477 specifies the items that must be included based on the nature of the transaction deed. The items listed below must be mentioned.

Identity details are included

When applying for a loan, the borrower must mention his or her three generations of ancestors. Name, surname, age, and address of the borrower, as well as names of his or her father, mother, grandfather, and grandmother, are all included. If the borrower is married, include the name of his or her spouse as well.

Reason for the transaction:

The purpose of the loan must be stated clearly in this section.

·         The transaction volume

·          The price of any good in the case of a transaction;

·          The matter to that effect in the case of an exchange of goods through borrowing, a loan, or otherwise;

·          Details of the goods exchanged, if any;

·         The repayment date for the transacted amount;

·         The rate of interest payable on the transaction, if any;

·         The fact that the creditor may recover the amount involved in the transaction from the borrower’s assets if

Place of execution of the deed,

 Date of execution of the deed,

Any other matters required by the nature of the transaction

Tamasuk, or reimbursement law, is the general principle of Nepali transaction deeds.

·         If the interest while taking benefit is not mentioned in the written, and if such benefit what or how much is to be taken is not mentioned in the written, then clause 478 has mentioned that the lender can take interest from the borrower.

·         The lender may not charge interest to a borrower:

·         The lender may not charge the borrower any interest if the interest is not specified in writing, according to clause 479.

·         Clause 480 states that the lender is not permitted to receive interest on interest. If interest on interest is taken, that amount must be deducted from the principal, and if the principal has already been paid, the lender must return such interest to the borrower.

·         Clause 481 states that the lender may not charge the borrower interest in excess of the amount of principal or double the total amount of the principle.

·         Custom to be fulfilled while paying the principal and interest: If the borrower pays all of the service charge and interest money, the written must be torn, or the lender must return the written to the borrower by writing about the full repayment already done at any place or on any page.

If the lender loses the written for any reason, the lender must compensate the borrower by presenting such a situation.

·         The borrower must pay some portion of the service or interest to the lender, and the lender must take compensation for the paid amount, or if possible, after the money is paid, it must be mentioned in the previous written then, as mentioned in clause 482, the borrower must sign and stamp it.

·          Interest must be paid until the entire principal is repaid: According to clause 483, the written period of house transfer means that if it is claimed in court within 10 years and the court orders to give interest to the lender, the lender can get interest until the full amount is paid.

·          In writing, house transfer or tamasuk period

By making tamasuk on any fixed or variable property, we can typically see a very minimal lending and borrowing culture. As a result, the lender and borrower should enter into a written agreement outlining service charge and interest repayments.

If the borrower fails to make interest and principal payments, the lender must file a lawsuit citing the maximum given duration of 10 years, as stated in clause 484 of the written in house transfer in this arrangement.

If the lender does not file a lawsuit within ten years, the court will dismiss the written deed. However, if the borrower makes a portion of the interest or principal repayment within 10 years, or if the duration of the interest or principal repayment has been lengthened, then 10 years will be added from the date of any repayment or the lengthened duration, according to clause 484.

 Unqualified and semi-eligible transactions will be rejected.

If anyone conducts a transaction with an ineligible or semi-eligible person, the transaction will not be recognized by the law, according to clause 485. A person who has not completed 10 years but is not mentally unstable (who is physically or mentally unhealthy and thus cannot understand self-done work and thus cannot protect own rights and welfare) is considered ineligible, while a person who has completed 10 years but is under the age of 18 is considered semi-eligible, according to clauses 33 and 34 of the 2017 National Civil Code.

Repayment from joint property funds

According to clause 486, when any transaction is made with any person, for example, if the written transaction is not signed by the elder person of the family, the lender cannot recover his repayments until the borrower obtains the right from the joint property from such property.

If the lender is unable to collect the money from the borrower as a result of such circumstances, the lender must keep a claim against the borrower for ten years.

The lender may reclaim the borrower’s funds after the borrower obtains title to his property from the joint property in accordance with the law.

Transactions involving tangible property cannot be completed without approval.

According to clause 487, any member of the joint cannot deal with any of the joint property without the permission of the elder member of the family. If such property is dealt with without the approval of the family’s elder, it will not be recognized.

In this case, you have 35 days to retrieve your money. The approval of the family’s elder is not required to transact on one’s own property.

If the transaction is discovered, repayment is made.

If a transaction is made without complying to the custom, the borrower must pay the money to the person who claims it through the court.

If a written house transfer deed is lost or an out-of-control situation develops, the lender must notify the community authority within 15 days.

 If such an application is made, the relevant community authority must take note of it and return it to the applicant with the company’s stamp and signature.

If the person to whom the relevant community authority writes is still alive, the nominee must appear in court within 7 days of the respective person accepting the previous written, and it must be given to the applicant after proof is provided. According to the law, another written deed can be created in this manner, as stated in clause 489.

If the object in question is defective, it must be returned.

If the money transaction does not go as planned, or if the item is damaged to the point where the person cannot use it, the person who gave the item must be notified within 35 days of the transaction.

If the receiver provides such information and finds it acceptable, the same thing should be exchanged with the giver; if not, the receiver’s own thing must be removed from the deal and the decision is written.

The object’s original state must be restored.

If a person takes anything from anyone’s possession, whether paid or not, borrowed or as a debit, or for any other reason, the type or quality item taken must be returned to the person after the work is completed in the same condition it was taken in.

If such an item is lost, destroyed, broken, or otherwise damaged, the taker is responsible for managing its value and returning it to the person. If the same item is not available, the market value of the item must be paid to the appropriate person.

Whatever the reason for the theft, the item must be returned within 15 days of the work being completed. If this is not done, the owner of the item may seek monetary compensation or loss compensation under clause 491.

Claim period for a transaction deed

There will be no claim period for any transaction carried out to acquire, misappropriate, or lose any disqualified or semi-eligible interest or interest greater than 10%. If a period is mentioned in writing but not written or by any other legal act. According to clause 492, it must be claimed within one year.

Should you have any questions, please do not hesitate to contact us at 9745374671 or by email info@corporatelawyernepal.com