Lending money is often based on trust, but what happens when the borrower refuses to pay it back? If you find yourself in this situation, don’t worry—you have legal options to recover your money. In India, the law provides several avenues to help individuals and businesses reclaim unpaid debts.
At Ravi & Associates, we specialize in debt recovery cases and help our clients take the right legal steps to recover unpaid dues efficiently. In this blog, we’ll guide you through the legal ways to recover money from a borrower who refuses to pay.
Step 1: Attempt an Amicable Settlement
Before taking legal action, it’s best to try and resolve the issue amicably. Here’s what you can do:
✔️ Send Reminders: Call, message, or email the borrower with polite but firm reminders.
✔️ Discuss a Payment Plan: If the borrower is facing financial difficulties, offer a repayment schedule.
✔️ Keep Records: Maintain proof of communication, such as WhatsApp messages, emails, and transaction details.
If the borrower continues to ignore requests, it’s time to take legal steps.
Step 2: Send a Legal Notice for Money Recovery
A money recovery legal notice is a formal demand letter sent through a lawyer. It includes:
- The amount due
- The date of borrowing and repayment terms
- A deadline (typically 15-30 days) for repayment
- A warning of legal consequences if the amount is not paid
A strong legal notice for unpaid dues often pressures the borrower into paying without court intervention. At Ravi & Associates, we draft well-structured legal notices to maximize their impact.
Step 3: File a Case for Money Recovery
If the borrower refuses to pay despite receiving a legal notice, you can file a money recovery suit under the Civil Procedure Code, 1908. The appropriate legal course depends on the nature of the transaction:
1. Summary Suit (Order XXXVII of CPC)
Ideal for cases involving written agreements, such as promissory notes, bills of exchange, or loan agreements. Summary suits are fast-track procedures where the borrower must provide a valid reason for non-payment, or the court may order immediate repayment.
2. Civil Suit for Recovery of Money
If no written agreement exists, you can file a regular civil suit in a district court. The process includes:
- Submitting all proof of lending (bank transfers, messages, witness statements)
- Court issuing summons to the borrower
- Borrower responding to the claim
- Court hearing and judgment
3. Criminal Case for Cheating or Fraud (If Applicable)
If the borrower deliberately deceived you or had no intention to repay from the start, you can file a criminal complaint under Section 420 of the IPC (Indian Penal Code) for fraud.
Step 4: Alternative Dispute Resolution (ADR)
If you want a faster resolution, consider mediation or arbitration:
- Mediation: A neutral mediator helps both parties reach a settlement.
- Arbitration: If an arbitration clause is included in the agreement, a private arbitrator decides the case without court intervention.
ADR methods save time and legal costs compared to lengthy court proceedings.
Step 5: Enforcement of Court Orders
If the court rules in your favor but the borrower still refuses to pay, legal enforcement options include:
✔️ Property Attachment: The borrower’s assets can be seized to recover the dues.
✔️ Bank Account Freeze: The court can direct the bank to freeze the borrower’s account.
✔️ Salary Garnishment: If the borrower is salaried, deductions can be made from their paycheck.
Ravi & Associates can assist in the execution of court orders to ensure you receive your rightful dues.
Common Questions About Money Recovery in India
1. Can I recover money without a written agreement?
Yes, you can still recover money using bank statements, messages, or witness testimony.
2. How long does it take to recover money legally?
Summary suits may take 6-12 months, while regular suits can take longer depending on the case complexity.
3. What if the borrower has left India?
Legal action can still be pursued through interpol red notices, embassy complaints, or property attachment in India.
4. What if the borrower is insolvent?
You can file a claim with the Insolvency and Bankruptcy Board of India (IBBI) to register as a creditor.
Why Choose Ravi & Associates for Money Recovery Cases?
At Ravi & Associates, we offer:
✔️ Experienced Debt Recovery Lawyers: We have handled numerous successful money recovery cases.
✔️ Strategic Legal Approach: Whether through legal notices, ADR, or court cases, we choose the most effective path.
✔️ Fast & Cost-Effective Solutions: We aim for quick settlements while keeping legal costs low.
✔️ Transparent Legal Guidance: We provide clear, honest advice so you know your legal standing.
Take Action Today – Contact Ravi & Associates
If someone owes you money and refuses to pay, don’t wait! Legal remedies exist to protect your rights. Ravi & Associates specializes in money recovery cases, ensuring swift and effective action against defaulters.
📞 Call us now at +91-8920599818 or whatsapp or visit our Contact Us page today for a legal consultation and let’s recover your money legally!