What is a Recovery Suit?

A Recovery Suit is a legal proceeding initiated under Order IV of the Civil Procedure Code, 1908 (CPC) by a person or business (the plaintiff) to recover a specific amount of money from another person or entity (the defendant). These suits are typically filed when a debt remains unpaid despite multiple requests or legal notices.

Recovery suits are an effective remedy for:

• Unpaid loans
• Pending invoices
• Dishonoured cheques
• Recovery of damages or compensation
• Non-payment of agreed sums under a contract

Legal Provisions for Filing a Recovery Suit

Several laws may apply depending on the nature of the debt:

• Code of Civil Procedure (CPC), 1908 – governs the filing and procedure of civil recovery suits.
• Indian Contract Act, 1872 – applicable where there is a breach of contract.
• Negotiable Instruments Act, 1881 – relevant for cheque bounce cases.
• Limitation Act, 1963 – sets the time limit for filing a recovery suit.

Types of Recovery Suits

1. Money Recovery Suit

Filed when money is due under a contract, invoice, or loan agreement.

2. Suit for Recovery of Possession and Damages

Used when property is unlawfully taken or damaged and compensation is sought.

3. Suit Under Order XXXVII (Summary Suit)

For fast-track recovery without full trial, where the liability is clear (e.g., promissory note, written contract).

When Can You File a Recovery Suit?

You can file a recovery suit when:

• The debtor refuses to repay the debt
• You have exhausted alternative dispute resolution (ADR) methods like negotiation or mediation
• You have documentary proof of debt, such as an agreement, invoice, or bounced cheque
• The statutory limitation period (usually 3 years from the date of cause of action) has not lapsed

Procedure to File a Recovery Suit in India

1. Drafting and Sending a Legal Notice

Before approaching the court, a legal notice is usually sent to the debtor, demanding payment within a specified period (often 15 or 30 days).

2. Filing the Suit

If the notice is ignored, a recovery suit is filed in the appropriate civil court. The jurisdiction depends on:

• The place where the cause of action arose
• The residence of the defendant
• The monetary value of the suit

3. Payment of Court Fees

Court fees are calculated based on the claim amount.

4. Court Proceedings

• Admission of Suit: Court examines the case and issues notice to the defendant.
• Written Statement: Defendant replies with a written defense.
• Evidence and Trial: Both sides submit documents and witness statements.
• Judgment: Court gives a decision based on facts and evidence.

5. Execution of Decree

If the court passes a decree in favor of the plaintiff, the next step is to execute it—either by attaching the debtor’s property or by other means as per law.

Documents Required to File a Recovery Suit

• Identity and address proof of the plaintiff
• Loan agreement or contract
• Invoices, emails, or letters proving the debt
• Bank statements
• Bounced cheque copies (if applicable)
• Legal notice copy

Time Limit to File a Money Recovery Suit

As per the Limitation Act, 1963, the limitation period for a recovery suit is three years from the date the debt became due or from the date of the last acknowledgment of debt.

Advantages of Filing a Recovery Suit

• Legal validation of your claim
• Possibility of interest and legal costs awarded in your favor
• Recover money through court-backed enforcement mechanisms
• Helps prevent future defaults from the same debtor