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Recovery from Debtors

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Civil Suit For Recovery: Procedure To Recover Due Debt

Sometimes it becomes tiresome to recover the dues from someone you know and to whom you once lend money and now they refuse to return it back. Unlike Banks and financial Institutions who have well-established debt recovery procedure, we don’t have any particular recovery procedure to recover due amount but law has provided us with numerous legal recourses to battle out such cases and to recover the money. One of the most important legal recourse available to victim is to file a Suit for recovery in Civil Court under Order 37 of the Civil Procedure Code, 1908.

First step by party to recovery due amount

In order to recover money from party foremost step is to send a legal notice to party for recovery of money. Before commencing any legal action, party is advised to serve a legal notice to the opposite party from whom amount is due. In the said legal notice party is required to describe all grievances including amount due to the party and thereby indicating your desire to initiate further legal actions in case amount is not paid within prescribed time limit.

Is it important to send legal notice through an attorney?

Sending legal notice is basically a final chance given to opposite party from whom amount is due to resolve or settle the dispute and pay the due amount to the party. Sometimes the issue gets settle just by sending legal notice that might bring the opposite party on heels and the issue might get settled even moving to court through mutual discussions and understanding. Thereby it is always advisable to take a help of Attorney to draft a legal notice, as well drafted and strongly worded legal notice elaborate and covers every fact related to dispute and way to resolve it.

What are the services Lawyerinc offers for recovery of amount due?

Our services:

Our comprehensive range of end-to-end solutions includes following:

  • End to end services for recovery notice.
  • We have expertise in drafting recovery notice.
  • Our Experts shall guide you through the procedure and will draft notice for you.
  • Our experts will file a complaint in court in case of no refund within prescribed time.
  • We shall inform you of the date and time when your physical appearance before court, if any
  • You will get your Recovery Notice without any hassles.

*Any fee, stamp duty and miscellaneous charges shall be payable extra.

Do contact us in case of any query related recovery notice and much more. To avail any of the above-stated services, kindly establish contact by posting a query at our site.

What a well-drafted legal notice should include?

A valid and well-drafted recovery notice should include below points:

  • The description of an event that led amount being due to the party such as payment of any good or service etc.
  • Description of any written Agreement/contract executed between parties;
  • Important terms and conditions of the Agreement;
  • Timeline/record of event;
  • Any obligations or responsibility under the agreement;

What if opposite party fails to refund the due amount?

Generally a time period of 15 days to 30 days is given to opposite party to refund the due amount or settle the dispute. If opponents refuse or fail to refund the due amount or settle the dispute within prescribed period of time, Party can take legal recourse and sue the opposite party.

Legal recourse if opposite party fails to refund the amount

  • To file a Summary Suit under Order 37 of the Civil Procedure Code, 1908: This is most common and faster mode to recovery due money from debtor in comparison to normal civil suits. After filing of Summary Suit, once the Judge is satisfied, Summons is issued to opposite party/Defendant. Opposite party is given only 10 days time period to appear and represent the case from court. If Opposite party fails to appear personally or through counsel within prescribed period of time, court has liberty to declare party as Ex-party and in such case only plaintiff is heard and matter is decided only on basis of merits.
  • To file criminal case under important provisions of Indian Penal Code, 1860: Creditor also has option to go for criminal proceedings , however criminal proceedings are time consuming and as this is criminal offence so more emphasis is given to punishment than recovery of money. Creditor can file a criminal complaint or an FIR with local police station under Section 406 of Indian Penal Code, 1908 for criminal breach of trust; Section 417 and 420 of Indian Penal Code, 1908 which covers cheating and dishonestly inducing delivery of property and its punishment; Section 426 of Indian Penal Code, 1908 which covers punishment for mischief.
  • To file a complaint under Section 138 of Negotiable Instrument Act, 1881: Creditor can file a complaint under Section 138 of NIA if debt due is out of cheque bounce/dishonor. This is more viable and fast track method compare to both Summary Suit and Criminal Complaint. As per the provisions of NIA, Creditor needs to send Statutory Notice to the defaulter within 30 days of cheque dishonor or from the date of return memo. Time period of 15 days is given to defaulter to repay the dishonor amount to creditor. In case if defaulter fails to repay the said amount, Creditor has option to file a complaint under Section 139 NIA within 30 days from date of delivery of legal notice to the defaulter. If defaulter is found guilty, the he can be imprisoned for the term of two years and/or with fine, which can be as high as twice the amount of the cheque.
  • In case of online transaction: Creditor can file an FIR with the Cyber cell of police of concerned city/state citing that his cyber safety has been breached. Cyber Crime Cells has been operational in various cities of states. As per The Information Technology Act, when a cybercrime has been committed, it has a global jurisdiction so the cyber complaint can be filed at any cyber cell. One may file an online complaint by specifying  his name, mailing address and contact number along with an application letter addressing to the head of a cyber-crime investigation cell. He also needs to provide certain documents in relation to the default/crime in order to register a complaint.

Frequently Asked Questions

  • 1. Can I send legal notice by myself?

    Although you can draft the legal notice but it needs to be dispatched under signature of an Attorney. And keeping the importance of money in mind certain legal provisions need to be added in notice that can only be drafted by some legal professional.

  • 2. Apart from civil suit what alternatives are available for recovery of money?

    You can file a Summary Suit, which is less time consuming, or you can file a criminal complaint under Indian Penal Code. Complaint can also be filed under Negotiable Instrument Act.

  • 3. Is it mandatory to send legal notice before filing a complaint?

    No, it is not mandatory to send legal notice before initiation of proceedings. But it is highly recommended to send a legal notice which not only increases the authenticity but also helps to resolve the matter sometime without moving to court. However, for initiating complaint under NIA, it is mandatory to send statutory notice.

  • 4. Why to get recovery notice drafted through lawyerinc?

    Lawyerinc is a complete blend of professionals from across the globe. In –house team of lawyers and attorneys, CA and CS. All professional work together in Lawyerinc, providing you end to end solution. It guarantees delivery in the shortest and most reasonable rate in India. It enjoys a global presence.

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