Question: I intermittently borrowed some money from a close friend a couple of years ago. We have never talked about repayment in Indian Rupee. Now, how should I pay these debts? Should I pay in Indian Rupee, gold or foreign currency?
As we can understand from your question, you did not determine a certain currency or payment date for the debt. Under normal circumstances, such a debt should be paid in the same currency and the same amount as it was borrowed. However, when the debt is due, or the payment is delayed (for a period which may cause loss of monetary value), not only the amount received but also the depreciation of that amount should be calculated and given. So, the rates of inflation between the date of receipt of each debt and the day of payment should be calculated, and the total amount should additionally be paid.
If the parties agree, the debt can be indexed in gold and another currency/property to calculate its current value.
You can find further information about debts and repayment on the link below: