Key takeaway
Most money claims must be filed within three years. Start with a legal notice, then choose the fastest suitable forum — a summary suit for written debts, arbitration if your contract provides for it, or other specialised routes. Many recoveries end in settlement once proceedings start.
Step 1: Gather proof
- Loan agreement, promissory note, invoices or contract
- Bank transfer records
- Messages and emails acknowledging the debt
- Cheques given for repayment, if any
Step 2: Check limitation
Many money claims must be filed within three years under the Limitation Act, 1963. A written acknowledgment of the debt signed by the debtor before the period expires starts a fresh period (Section 18).
Step 3: Send a legal notice
A notice demanding payment often prompts settlement and is useful evidence.
Step 4: Choose the forum
- Summary suit — under Order XXXVII CPC for claims on written contracts, bills and negotiable instruments; the defendant needs leave to defend.
- Commercial suit — commercial disputes above the specified value, usually after pre-institution mediation (Section 12A, Commercial Courts Act).
- Arbitration — if your contract has an arbitration clause.
- Cheque bounce complaint — if a cheque was dishonoured.
- MSME facilitation council — for registered micro and small enterprise suppliers with delayed payments.
- Insolvency — against a company in default above the threshold, where appropriate.
Protecting the money
Courts can order attachment before judgment where the debtor is trying to dispose of assets (Order XXXVIII CPC). After a decree, execution can include attachment of bank accounts and property.
From abroad
- A power of attorney holder can file and pursue the case.
- Courts may require security for costs from a plaintiff living abroad.
- Evidence can often be given by video.
Frequently asked questions
A friend borrowed money without paperwork. Can I recover it?
Yes, but proof matters — bank transfers and messages help.
Can I recover interest?
If agreed, or at the court’s discretion.
Can I enforce a foreign judgment in India?
Money decrees from reciprocating territories can be executed under Section 44A CPC; others need a suit.
Related LegalCops services
References
- Code of Civil Procedure, 1908 — Order XXXVII, Order XXXVIII, Section 44A
- Commercial Courts Act, 2015 — Section 12A
- Limitation Act, 1963 — Section 18
- Micro, Small and Medium Enterprises Development Act, 2006
Last reviewed: November 2026.
The information provided is for general educational purposes only and does not constitute legal advice. Applicable laws and procedures may vary depending on the facts, jurisdiction, and circumstances of each matter. Consult a qualified legal professional before taking action.
