Money Recovery Suit

Money recovery can be a hectic process, it is quite difficult to file a suit for recovery of debt. The legal notice is a formal way of correspondence between two parties by which one party can send an intimation to another in the form of a legal notice stating the recovery of a debt due to the other party. 

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Whether it’s a friend or a relative, one can send a legal notice stating the recovery of due or outstanding amount with them. The outstanding amount can recover through legal proceedings. Order 37 of the Code of Civil Procedure, 1973 is the legal provision governing the debt recovery using a legal notice. 


A legal notice has to be sent within a period of three years from the starting date when the debt was pending until three years, the party, who owes the debt consents that he/she owes the debt then the limitation of three years is not applicable. The amount due should be perceived as a reasonable amount by a reasonable person for sending a legal notice. 




  1. When the loan due is not paid by the borrower for a significant number of days- The debt recovery tribunal is present in every state. The first stage in debt recovery is sending a legal notice to the debtor by the creditor i.e. the bank;


  1. Employer and employee relationship – a) If an employer prohibits the employee from getting his/her salary, then a legal notice can be sent by the advocate of the employee to recover the amount of the salary.
  2. If an employee runs away with the money of the company, then a showcase notice or legal notice can be served to the absconding employee by the company; 
  3. Tenant – When a tenant does not pay the rent to the landowner, then the landowner can serve a legal notice for recovery of money from the tenant; 
  4. Giving a loan to a friend- while giving a loan to a friend one needs to ensure that the loan should be given by the means of two instruments- loan agreements or promissory notes so that the problem of debt recovery through legal notice does not arise in the future.


How to apply


When sending a legal notice for recovery of money, it is imperative to follow the following steps


  1. One must hire someone, who is qualified in the debt recovery procedure;
  2. The drafted notice must be checked thoroughly before sending it to the other party;
  3. The complainant party or the party sending the legal notice can give any suggestions in the drafted legal notice;
  4. Before filing a suit, it is better to send a legal notice as it allows the dispute of due payment to be solved with mutual understanding. Most of the cases of debt recovery are resolved by sending a legal notice for recovery of money.


Key Requirements


Essentials contained in a Legal Notice for Recovery of money 


  1. The amount of money claimed by the complainant party or the party sending the legal notice;
  2. Name, address, and general information of the sender of the legal notice;
  3. The details and information of the problem or cause of action should be clearly and precisely stated;
  4. Briefly explaining the legal soundness of the relief claim.


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