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Recovery of Money in India

Recovery of Money in India

Recovering money under Indian laws is difficult owing to so many bottlenecks of one such is poor enforcement and lack of awareness. 

It's very common where educated people lend money without any written agreement or promissory note to that effect. 

Now what can I do if I am of one such category? 

SUMMARY SUITS UNDER ORDER 37 CPC.

The best recourse where defendants at the outset only have to apply for leave to defend which if rejected attracts judgement henceforth in favour of plaintiff. Thus if you can show in the beginning only the debt owed to you, half the battle is won, leave the  amount alone.

Note- Defendant has to apply for leave to defend within 10 days of his/her appearance. 

Also courts in case of granting leave can ask defendants to deposit some share of total amount. 

Where to file the recovery Suit in India? 


A. Pecuniary - upto 2 crores in District Court,  above in High Court. 
B. Territorial - Where the cause of action has  arisen or defendant's primary place of business.

What is the limitation to file Recovery Suit in India?


FROM THE CAUSE OF ACTION FIRST ARISING. 

FAQs regarding Recovering suit?

1 Specific averment in your petition that you are claiming relief under this order.
2 Only asking relief which is allowed by this order. 
3 In absence of any written contract, case will be based on surrounding circumstances and facts.
4 Court Fees has to be paid before the petition is filed that is fixed percentage on the total amount sought from Court.  
5 If more than one defendant at different place then courts permission has to be sought regarding place of jurisdiction.  
6 If the defendant fails to apply for leave to defend then judgement immediate and ex-parte decree can also be awarded, appeals against which lies to High Court.
7 The order also provides recovery of expenses on litigation as well.
8 The courts may ask to deposit the original with Court. 
9 If the court allows to defend then the case will as per ordinary procedure of law which is CPC.


Situations where money can be recovered?

1 Recovery of salary from employer.
2 Enforcing payments due from corporate. 
3 Funds muddled by brokerage.
4 Someone took the money and not responding. 

If there's anything else I have missed, do let me know in the comments section below or dial 9988817966 for quick chat.

Spreading Legal awareness throughout India- LegalSeva

 

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