Civil

Money Recovery


Overview

Often we come across circumstances where the opposite party fails to return the money or repay the amount within the stipulated period. Hence, there are various legal resources that can be taken by the aggrieved party against the defaulter party. One of the legal actions an individual can take is to file a civil suit for recovery of money under the Code of Civil Procedure within a stipulated time period. In this article, a clear understanding of what a money recovery suit is, what are the documents required to file the suit for recovery, and the process of filing the suit has been discussed.

What Is A Money Recovery Suit?

A Suit for recovery of money is a civil relief and acts as an effective remedy to recover money from the delinquent. The suit can be filed under Order IV of the Code of Civil Procedure 1908 (CPC). It is a summary suit (Order 37, Code of Civil Procedure) that offers speedy disposal of the suit as here the defendant is not required to defend as a matter of right.

Documents For Filing Recovery Suit

A document that acts as proof for the grant of money from a person to the defaulter is enough to prove the debt.

 

Promissory notes, Bank account transactions, a contract or other payments so made act as evidence of the lending of money. Also, any document, message, contract, mail, telephonic conversation, or post can serve as proper evidence in the Court to prove the debt.

Process

What is the procedure for filing a Money Recovery Suit?

Every suit has to be instituted as a plaint. Plaint is narration of facts of the case and the amount that is claimed including the interest if any. In every plaint, an affidavit has to be filed proving the facts.

The following particulars of a plaint:

  • Court Name
  • Name, description of the plaintiff, and place of residence of the plaintiff
  • Name, description of the defendant, and place of residence of the defendant
  • Cause of action
  • Establishing the jurisdiction of the Court
  • Relief that the plaintiff is seeking; 
  • Any set-off or relinquishment of claim by plaintiff
  • Subject matter value for the purposes of jurisdiction and court fees
  • Signature and verification. Money recovery is a specific case, and in such cases, the amount claimed must be mentioned in the suit.

Proceedings After Institution

Issuance of summons: A summon is a document issued by the court, calling upon the person to attend the court before a judge or an officer of the court for the specified purpose. The Court after scrutinizing the plaint and its jurisdiction issues a summon which is duly sent to the Defendant within 30 days of the filing of the suit.

 

Written Statement: It is a reply filed in response to the plaint filed by the plaintiff. The Defendant, before the first hearing or not more than 30 days from the date of summons file a written statement defending it. In the written statement, the defendant has to state new issues in his favor or take legal actions opposing the plaintiff’s claim.

Framing Of Issues, Trial And Arguments:

After issues involved in the suit are framed, settlement of issues takes place, and finally, the trial commences. After taking into account all the evidence, the final arguments are heard and the suit is finally decreed.

 

As soon as the suit is registered and summons are issued, the defendant has a time of 10 days to appear before the court, failing which the court assumes that the plaintiff’s allegations are true and passes the judgment in the plaintiff’s favor.

Court Fees

According to the schedule, the court fee has to be paid by the Plaintiff. A suit shall not be filed in case the court fees are not paid by the plaintiff.

Execution Of A Decree

Final step after a person gets a decree from the court of law against another person, is that the decree has to be satisfied. Execution proceedings is a process by which a person approaches the court for the accomplishment of his decree. Execution proceedings enable the enforcement of an order passed by the court or give effect to the judgment of the court of law. The execution ends when the judgment debtor gets the relief granted to him by judgment, decree, or order.

FAQs On Money Recovery

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