Suit for Recovery of Money Under Civil Law in India
Owed money by someone who refuses to
repay? Whether it's a loan to a friend, an unpaid invoice, or breach of a
financial agreement — the Indian legal system provides civil remedies through a
money recovery suit.
In this article, you'll learn:
- What is a money recovery suit
- Types of civil remedies for
money recovery
- Jurisdiction and limitation
period
- Step-by-step filing process
- Role of a civil lawyer in
Delhi
- How to strengthen your claim
📌
What is a Money Recovery Suit?
A money recovery suit is a
civil lawsuit filed to recover a legally recoverable debt, loan, or outstanding
amount. It is typically filed under the Civil Procedure Code (CPC), 1908
or under summary procedures for faster disposal.
💼
Common Scenarios for Money Recovery Suits
- Unpaid business dues from a client
- Personal loan given without a formal
contract
- Bounced cheques (can also attract criminal
charges under NI Act)
- Advance paid for services not rendered
- Salary dues from an employer
- Commission or rent unpaid by a tenant
If someone owes you money and
refuses to return it despite reminders, you have a valid cause of action
for filing a suit.
📍
Where to File the Suit? (Jurisdiction)
Jurisdiction is based on:
- Cause of action (where the transaction
happened or where the debtor resides)
- Amount of money involved
|
Amount
Involved |
Forum |
|
Up to ₹20 lakh |
District Civil Court |
|
₹20 lakh – ₹2 crore |
District or Commercial Court |
|
Above ₹2 crore |
Commercial Division of High Court |
For Delhi-based cases, jurisdiction
may lie in Tis Hazari, Saket, Rohini, Karkardooma, etc., or the Delhi
High Court.
⏱️
Limitation Period
You must file the suit within 3
years from the date the money became due or was last acknowledged in
writing.
Failing this, the case may be barred
by limitation, and the court will not entertain your claim — even if it’s
otherwise valid.
⚖️
Legal Remedies Available
- Ordinary Civil Suit for
Recovery
- Under CPC, 1908
- Standard legal process
- Summary Suit under Order 37 CPC
- Fast-track procedure for
liquidated debts (loan, cheque bounce, promissory notes)
- No need for lengthy trial
unless defendant gets permission to defend
- Negotiable Instruments Act
(Section 138)
- If cheque is dishonoured
- Civil + criminal remedy
- Insolvency Petition
- Against companies or
individuals unable to repay large debts
📁
Documents Required
- Loan agreement (if any)
- Bank statement or transaction
record
- Promissory note / IOU (if
signed)
- Cheques / UPI payment
screenshots
- Legal notice (sent before suit)
- Identity & address proof
- Correspondence via email or
WhatsApp
Your case is stronger when supported
by clear evidence of liability and reminders.
🧾
Steps to File a Money Recovery Suit
✅
Step 1: Send a Legal Notice
- Sent by your civil lawyer
- Gives the debtor 15–30 days to
pay
- Failure to pay leads to civil
action
✅
Step 2: Draft and File the Suit
- Includes plaint, affidavit,
cause of action, claim amount, relief sought
- Filed in appropriate court with
jurisdiction
✅
Step 3: Court Issues Summons
- Defendant is given a chance to
reply
- If no response, court may
proceed ex parte
✅
Step 4: Evidence and Trial
- Both parties present
documentary and oral evidence
- Civil lawyer cross-examines
witnesses
- Arguments presented
✅
Step 5: Court Decree
- If proven, court issues decree
for recovery
- May include interest, legal
costs, and damages
🏦
Execution of Decree
Even if you win the case, the money
isn’t automatically transferred. If the debtor doesn’t comply, you must
initiate an Execution Petition under Order 21 CPC.
This can involve:
- Attachment of property
- Salary or bank account
garnishing
- Auction of debtor's assets
Role
of a Civil Lawyer in Delhi
A skilled civil lawyer:
- Assesses the merits of your
claim
- Helps you choose between a
regular suit and a summary suit
- Drafts a strong legal notice
and plaint
- Guides you on limitation period
and forum
- Argues your case and handles
execution of decree
📊
Summary Table
|
Aspect |
Details |
|
Type of Case |
Civil suit under CPC (Order 37 if
summary suit) |
|
Limitation Period |
3 years from date of default |
|
Documents Needed |
Loan proof, bank statements, legal
notice, identity, evidence |
|
Forum |
District Court / Commercial Court
/ High Court (depending on value) |
|
Timeframe |
6 months to 2 years, varies by
complexity and court backlog |
🧠
Legal Tips to Win a Money Recovery Case
- Preserve written
communication (WhatsApp, email, SMS)
- Always issue a legal notice
before filing suit
- Avoid delay — file within
limitation period
- Seek summary suit if
conditions apply (faster disposal)
- Work with a lawyer who can also
execute a favorable decree
🏁
Conclusion
Filing a money recovery suit in
India is a legally recognized and enforceable remedy under civil law.
Whether you're an individual, freelancer, or a business — if someone owes you
money and refuses to pay, the law is on your side.
To maximize your chances of success and get your money back quickly, consult a trusted civil lawyer in Delhi who understands the intricacies of filing, litigation, and enforcement.
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