If a lender fail to repay the due amount then as per the provision of section 3 of Limitation Act one can send a legal notice to the party who fails to pay the money. In that case one can file a recovery suits in the civil court. This suit will be file under XXXVII Civil procedure code.
Companies, Proprietorship firm, Partnership Firms, Traders including individual as well as others can file a suit for recovery of their unpaid bills, business dues or payments. In this suit debtors have no much choice of not paying debts to the party as there are not many chances where the proceedings could be delayed.
In India the limitation period for filing a civil recovery suit is 3 years. After expiring of this period the claim is barred by time.
Procedure of suits under order 37 CPC
- Submit a fee which must be include the determination where the law suits is filed under this order and no remedy has been claimed under any other law.
- The defendant shall not defend the case referred to in sub-rule 1 unless it appears in his complaint.
- The complaint shall be in form o4 of appendix B or it may be in other form which is prescribed in this regard time to time.
Rate of interest will be applicable if any up to the date of issuance of decree that may be determined by the Supreme Court from time to time by the rules issued in this name.
Jurisdiction to file a suite in different courts.
The Supreme Court determines the financial limit of the Districts court. The financial limit of district court is currently up to 2 crores.
The Supreme Court determines the financial limit of High Court is more than 2 Crores.
Steps for recovery money
- First of all there will send a legal notice to the defaulter.
- After sending notice if you do not receive payment you can go for one of the options. Criminal case or Insolvency, Negotiable Instruments, Summary Lawsuits and Bankruptcy Law.
Steps Required in Money Recovery Suits:-
- Documents Verification- Arrange all relevant documents and send it to your lawyer for verification
- Petition Drafting – After receiving documents a petition would be drafted within a week.
- Approval of the Party- All documents will be shared with the party for his/her final approval and if it required a few rectification same will be done.
- Filing of the Petition- A well framed copy of petition is sent to the court after approval of the drafted petition by the party.
- Waiting Period- The debtor may reply to the Petition. This will be the waiting time.
- Court Hearing- After all above procedure the court will arrange a date for hearing where arguments will be done over the verified points of matter.
We have a team having years of experience dealing in such cases that is why we will lead you through the process positively.