Lending money to a friend, supplying goods to a business or paying an advance for a service that was never delivered — unpaid money is one of the most common legal problems. The good news is that Indian law provides clear remedies. The key is choosing the right one and acting within time.
Step 1: Collect your evidence
- Written agreements, invoices, purchase orders or promissory notes
- Bank statements showing transfers
- Emails, WhatsApp chats or messages admitting the debt
- Any cheques given by the other party
Step 2: Send a legal notice
A well-drafted legal notice sets out the facts, the amount due with interest and a deadline to pay. Many disputes are settled at this stage. The notice also becomes important evidence later.
Step 3: Choose the right court proceeding
Summary suit (Order XXXVII CPC)
If your claim is based on a written contract, a bill of exchange, a promissory note or a cheque, you can file a summary suit under Order XXXVII of the Code of Civil Procedure. Here the defendant cannot defend as a matter of right — they must apply for “leave to defend” and show a genuine defence. This makes summary suits much faster than ordinary suits.
Ordinary recovery suit
Where there is no such written document, an ordinary civil suit for recovery of money can be filed, supported by oral and documentary evidence.
Commercial disputes
If the dispute arises from a commercial transaction and its value is ₹3 lakh or more, it is governed by the Commercial Courts Act, 2015. In most such cases, pre-institution mediation under Section 12A is mandatory before filing the suit, unless urgent interim relief is required.
Which court in Delhi?
Depending on the value of the claim, the suit is filed either in the District Courts of Delhi or, for high-value claims (above ₹2 crore), on the original side of the Delhi High Court. Territorial jurisdiction depends on where the defendant resides or carries on business, or where the cause of action arose.
Limitation period: don’t miss the deadline
For most money claims, the limitation period is three years under the Limitation Act, 1963 — usually counted from the date the money became due. A written acknowledgment of the debt or a part-payment made within the limitation period can give a fresh period of limitation.
Other options
- Cheque bounce complaint under Section 138 NI Act, if a cheque was dishonoured
- Arbitration, if your agreement has an arbitration clause
- MSME Samadhaan / Facilitation Council, if you are a registered micro or small enterprise supplier
Talk to an advocate
Adv. Swati Suman assists clients with legal notices, summary suits and recovery proceedings in Delhi. Call or WhatsApp 8789818007.
Disclaimer: This article is for general legal awareness only and is not legal advice. Every case depends on its own facts — please consult an advocate before taking any step.
