civil
Money Recovery / Debt Collection
Someone owes you money — a personal loan, business debt, or unpaid dues — and is not repaying despite repeated requests.
- 01Send a written demand letter to the debtor requesting payment
- 02If cheque bounced — send legal notice within 30 days of bounce
- 03If no response to demand letter — send a formal legal notice through lawyer
- 04File a money recovery suit in Civil Court (Order 37 for summary suit)
- 05For cheque bounce — file criminal complaint under NI Act Section 138
- 06For smaller amounts — approach Small Causes Court
- 07If debtor has property — apply for attachment before judgement
- Loan agreement, promissory note, or IOU
- Bank transfer records showing money lent
- Bounced cheque and bank return memo
- Communication records showing acknowledgement of debt
- Witness statements
- Messages, emails, or WhatsApp chats about the loan
- Any collateral or security documents
- Legal notice to debtor
- Money recovery suit petition
- Loan agreement or promissory note
- Bank statements showing transfer
- Bounced cheque and return memo (if applicable)
- ID proof
- Civil Court — Money recovery suit (Order 37)
- Criminal Court — Cheque bounce case (NI Act 138)
- Small Causes Court — For smaller amounts
- Lok Adalat — For amicable settlement
- Debt Recovery Tribunal — For bank/FI debts above Rs. 20 lakh
- NCLT — For insolvency proceedings on defaults of Rs. 1 crore or more
- Civil Procedure Code — Order 37 (Summary suit for money recovery)
- Negotiable Instruments Act — Section 138 (Cheque bounce — criminal offence)
- Indian Contract Act — Section 73 (Compensation for breach of contract)
- Insolvency and Bankruptcy Code — For defaults of Rs. 1 crore or more
- Limitation Act — 3 years to file money recovery suit
If someone owes you money and is not paying, Indian law provides several remedies. For amounts backed by cheques, the Negotiable Instruments Act (Section 138) makes cheque bounce a criminal offence. For other debts, you can file a civil money recovery suit under Order 37 of CPC (summary suit for faster resolution). A legal notice is the first step. For small amounts, approach the Small Causes Court. For business debt defaults of Rs. 1 crore or more, the Insolvency and Bankruptcy Code may apply.
When to see a lawyer
Consult a lawyer to draft the legal notice and file the suit. Money recovery cases require proper documentation and legal strategy. A lawyer can also help with attachment of debtor's property.