Lead India

Nowadays, it happens that the other party doesn't return the money or repay the amount within the agreed-upon time frame. So, the party who has suffered harm has a range of legal options to pursue against the defaulting party. If the aggrieved parties still don't receive the payment, they can go for one of these choices, Summary Lawsuit, Negotiable Instruments Act, Criminal case or Insolvency and Bankruptcy Code. Legal Provisions under IPC: Different laws allow for the filing of criminal cases in order to recover money owed to borrowers. If a borrower uses a check or a bill of exchange to make a payment but fails to do so, the moneylender may file a lawsuit under the Negotiable Instruments Act. Likewise, if a borrower uses a check or a bill of exchange to make a payment but it bounces, the moneylender may file a lawsuit under Section 138 of the Negotiable Instruments Act and the borrower is required to make up the difference within 30 days. If the borrower doesn't ...

Summary Suit or Summary procedure has been provided under Order 37 of the Code of Civil Procedure, 1908. The provision of summary suit applies to- All suits related to bills of exchange, hundies and promissory notes. The suits where the plaintiff seeks to recover a debt which is to be payable by the defendant, due to a contract or an enactment, where the sum sought to be recovered is fixed.  A suit for recovery of money under CPC can be instituted under this provision in the High Court, City Civil Court, Court of Small Causes or any other court of law as provided by the law.  Limitation Period to file a Recovery Suit- The limitation period to file a civil suit is within a period of 3 years, any later than that the claim shall be barred by time.  The companies, Partnership firms and traders etc., could file a suit for the recovery of their unpaid bills/ business due amounts or payment if there is a written agreement between the parties. In o...