Recovery Suit Filing Lawyers Advocates in Delhi
Recovery Suit Filing in India – Provisions Under BNS, BNSS, CPC, CrPC & Process
A recovery suit is filed when a person or business is legally entitled to recover money, property, or compensation from another party. In India, recovery of dues, unpaid invoices, loans, or breach of contract is governed under Bharatiya Nyaya Sanhita (BNS 2023), Bharatiya Nagarik Suraksha Sanhita (BNSS 2023), the Civil Procedure Code (CPC), and the Criminal Procedure Code (CrPC).
1. Legal Provisions for Recovery Suit in India
(A) Bharatiya Nyaya Sanhita (BNS) – Criminal Provisions for Recovery
✅ BNS Section 316 (Previously IPC 406 & 420) – If money or property was fraudulently taken, a criminal case for breach of trust or cheating can be filed.
✅ Punishment – Up to 7 years imprisonment + Fine.
(B) Bharatiya Nagarik Suraksha Sanhita (BNSS) – Criminal Case Procedure
✅ BNSS replaces CrPC and provides the procedure for filing a criminal complaint for fraud, breach of trust, or misappropriation.
(C) Civil Procedure Code (CPC) – Civil Recovery Suit
✅ Order XXXVII CPC (Summary Suit for Recovery) – A special fast-track civil suit where the defendant gets limited defense options.
✅ Regular Civil Suit – If there is a legal contract or debt agreement, a standard civil suit under CPC Section 9 can be filed.
(D) Arbitration & Conciliation Act, 1996
✅ If there is an arbitration clause, disputes can be resolved without court proceedings through an arbitrator.
2. Process of Filing a Recovery Suit in India
Step 1: Send a Legal Notice
🔹 Before filing a suit, a legal notice must be sent, demanding payment within 15-30 days.
🔹 If the opposite party fails to pay, a suit can be filed in Civil Court or Magistrate Court.
Step 2: Filing of Recovery Suit in Court
✅ Where to File?
- Small cases (< ₹3 lakhs): Local Civil Court.
- Higher amounts (> ₹3 lakhs): District Court / High Court.
- Criminal fraud cases: Magistrate Court under BNS 316 or BNSS procedure.
Step 3: Submission of Required Documents
✔️ Legal contract/agreement (if any).
✔️ Proof of money transaction (Bank statements, invoices, cheques, etc.).
✔️ Correspondence/emails showing demand for repayment.
✔️ Legal notice copy & delivery proof.
Step 4: Court Issues Notice to Defendant
🔹 After reviewing the suit, the court issues summons to the defendant.
Step 5: Defendant’s Response & Hearing
🔹 The defendant must reply within 30 days.
🔹 If the defendant fails to appear, the court may pass an ex-parte decree (judgment in favor of the plaintiff).
Step 6: Court’s Judgment & Execution
✅ If the plaintiff proves the claim, the court orders recovery of the amount with interest.
✅ If the defendant refuses to pay, the plaintiff can seek:
✔ Attachment of property/assets.
✔ Bank account seizure.
✔ Salary deduction order.
3. Types of Recovery Cases in India
(A) Money Recovery from a Loan or Business Transaction
- Applicable Law: CPC Order XXXVII (Summary Suit).
- Procedure: Send legal notice → File civil suit → Court summons the defendant → Court passes a decree.
(B) Cheque Bounce Recovery
- Applicable Law: BNS 320 (Formerly NI Act 138).
- Procedure: Send legal notice within 30 days → Wait 15 days → File a criminal complaint.
(C) Fraud or Misappropriation of Money
- Applicable Law: BNS 316 (Formerly IPC 406, 420 – Criminal Breach of Trust & Cheating).
- Procedure: File FIR at the police station → Case registered → Court trial.
(D) Recovery of Property
- Applicable Law: Specific Relief Act, 1963.
- Procedure: File civil suit for possession → Court order possession restoration.
4. FAQs on Recovery Suit in India
Q1. What is the time limit for filing a recovery suit?
✅ 3 years from the date of non-payment (as per Limitation Act, 1963).
Q2. Can I file both a criminal and civil case for recovery?
✅ Yes
- Civil case for financial recovery.
- Criminal case under BNS 316 for fraud/misappropriation.
Q3. Can I recover money without a written agreement?
✅ Yes, if there is proof like bank transactions, messages, or witness statements.
Q4. What if the defendant does not appear in court?
✅ The court may pass an ex-parte decree & order attachment of assets.
Q5. How long does it take to recover money through a suit?
✅ Summary suits (Order XXXVII CPC) – 6 to 12 months.
✅ Regular civil suits – 1 to 3 years.
Q6. Can the court order interest on the recovered amount?
✅ Yes, court awards interest (12%-18% per annum) on the due amount.
5. Conclusion
- Recovery of money/property can be done through Civil & Criminal cases under BNS, BNSS, and CPC.
- Summary suits under CPC Order XXXVII provide fast-track recovery.
- Legal notice is mandatory before filing a case.
- If the defendant refuses to pay, courts can attach assets & bank accounts.
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