How to draft a legal notice for recovery of money? 

In India, legal problems about money recovery are not uncommon. A legal notice for recovery of money directed to the party in default is one of the best strategies to resolve such problems. A formal warning to the recipient to return the sum due or else legal action would be taken is given by mailing a legal notice to recover the money owed. You should consult legal professionals at Lawgical Adda for clear information on the topic relevant to your case.

Legal Notice for recovery of money in India

Sending a legal notice for not returning money is one of the first steps in the money recovery process in India, as was previously described. An advocate will draft legal notice for recovery of money either to indicate the client’s intention to begin legal proceedings or to negotiate a settlement on behalf of the client. One can also take legal action against company for non-payment in India. A legal notice for recovery of money will contain the following:

• Sender’s name, description, and address.
• Information regarding the cause of action that prompted the notice.
• The notice’s sender may be entitled to a monetary remedy. 
• The legal foundation upon which a request for financial relief is made. 

When to Communicate with a Legal Notice for Non Payment of Loan?

• Despite several warnings, the defaulting party has not repaid a loan or debt.
• A financial transaction involves a breach of contract or commitment.
• The party in default has unfairly benefited at the expense of the party being wronged.

What must a Legal Notice for Recovery of Money include?

A legal notice for recovery of money must include

• The legal notice must be written on an advocate’s letterhead and accurate and detailed.

• It ought to include the advocate’s address and phone number.

• It is necessary to specify the date of the legal notice’s issuance together with the recipient’s name, address, and phone number.

• The client is sending the legal notice seeking money recovery, so the client’s name and contact information must be included.

• In the legal notice for recovery of money, it should be clear how the opposite party’s behaviour or omission violated your rights and what you seek from him in response. The other party needs to be given clear instructions and a deadline.

• The advocate and the sender must sign the notice and include a date.

Documents Required for a Money Recovery Legal Notice

Before filing a lawsuit in order to recover money, the party that was wronged should compile all pertinent paperwork, including:

• Debt or loan arrangements.
• Negotiable instruments such as promissory notes, checks, or others.
• Records of earlier correspondence, such as text messages, emails, and letters.
• Evidence of a default or contract violation.
• Any pertinent bills or invoices.

Process of Legal Notice for Recovery of Money

There is no specific process for drafting a legal notice to recover money. On the other hand, a legal notice for recovery of money needs to be written and signed by an attorney and contain all the information that was previously stated. The lender should review the note after it is written. The defendant should then receive it. A recovery suit against the defendant may be brought in the court with jurisdiction if no action is taken or if restitution is not made within the specified number of days after the notice. The Advocate needs to draft a legal notice for recovery of money fact wise.

Draft Legal Notice Format for Recovery of Money

To, _____________ 

Dear, Sir or Madam 

On this date ____, I hereby serve you with the following legal notice in accordance with the directives from and on behalf of my client ___________________, through its _____________. 

1. That the company or individual I represent is ___________ operating under the name and style of M/s ______________________. 

2. That my client is in the ___, etc., business of __________. 

3. Because you had an active credit account in my client’s account books that is operated in the regular course of business, my client occasionally performed your job work on credit against your legitimate and confirmed order. 

4. Despite your acknowledgement of receiving the bills, my client has raised invoices for each and every task completed and is waiting for payment. 

5. That despite acknowledging your obligation to pay the principal balance of ₹ _________/-, you have wilfully neglected to pay the amount that is owed to my client from you on purpose. As a result, you are obligated to pay the principal balance of ₹ __________/-as well as interest at the rate of __% per annum from the date of due until the said sum is realized, as is generally and customarily prevailing in the trade usages, totaling ₹ __________/-. 

6. That as a result, you owe my client mentioned earlier a total of __________, and my client named earlier has the right to collect that amount from you. 

7. That my client has repeatedly asked you to release the aforementioned outstanding payment by phone and by sending a personal messenger to your office; however, you have consistently postponed this on various grounds and have not reimbursed a single paisa of the outstanding, undisputed amount to date. 

Thus, by means of this Notice, I hereby finally demand that you pay my client ₹__________/-, plus future interest at the rate of __% p.a. from the date of notice until the actual realization of the said amount, along with a notice fee of ₹ ____/-, in cash or by demand draft or check, whichever method is most convenient for you, within a clear 30 days of the date on which you receive this Notice.

If you fail to do so, my client has given me specific directions to file a civil lawsuit for recovery and other related actions against you in the appropriate court of law, for which you will be entirely liable. This notice has been kept on record in my office for future reference and action. 

Lawgical Adda can help you draft and send a legal notice for non payment of loan easily. We can also help you draft a legal notice format in hindi or any other language!

FAQs

What is the legal action process after legal notice for recovery of money?

Order IV of the 1908-enacted Code of Civil Procedure (CPC) may be used to file the lawsuit. Three years from the day the cause of action first appears is the window of opportunity for commencing a lawsuit to recover money. However, it may also be excused and left up to the court’s judgment.

What can I do if someone doesn’t return my money?

Imagine that you have given your money to a friend. If he doesn’t pay back the amount, you can initiate a civil lawsuit against him after sending him a demand notice for recovery of money requesting that he reimburse your debt within a certain amount of time. But you have the option to report cheating with a FIR.

What happens when one doesn’t respond to your legal notice for recovery of money?

The plaintiff may bring legal action against the defendant in an appropriate court of law if the defendant fails to reply to your legal notice by advocate within a fair and agreed upon timeframe.

Is legal notice for recovery of money mandatory in suit for recovery of money?

The lender is required to send the borrower a Statutory legal notice for recovery of money prior to initiating a money recovery lawsuit.