How-To Guide · Recovery of Money
How to Send a Legal Notice for Recovery of Money in India (2026)
When someone owes you money and will not pay, a legal notice for recovery is usually the first real step. It is a formal demand that sets out exactly how much is due, why, and by when, and warns that you will sue if it is ignored. You do not legally have to send one before filing a recovery suit, but it is cheap, it often gets you paid without a case, and it builds your record if the matter does go to court. This guide answers the practical questions: when a recovery notice is worth sending, what it must say, the three-year time limit you cannot ignore, how to serve it, and what happens next, including the faster summary suit route. It is general information, not legal advice.
- Not mandatory, but worth it: a recovery notice often gets you paid without a suit and builds your record.
- Be specific: state the exact principal and interest, the basis of the debt, and a 15 to 30 day deadline.
- Three years: most money suits must be filed within three years of the debt falling due, under the Limitation Act, 1963.
- Then a suit: many written money claims qualify for a faster Order 37 CPC summary suit if the notice is ignored.
01When to send a recovery notice
A recovery notice fits any situation where a clear, identifiable sum is owed: an unpaid invoice, a friendly loan that was not returned, a security deposit withheld, dues under a contract, or a bounced payment. Sending it first is not mandatory for a civil recovery suit, but it is almost always worth doing.
- It often works: a formal demand with a deadline settles many debts without a case.
- It builds your record: an ignored notice is evidence that you demanded payment and gave fair time.
- It can reset the clock: if the debtor replies and acknowledges the debt in writing, the limitation period can start again from that acknowledgement.
If the money is due on a bounced cheque, a different and time-bound notice applies, see the cheque bounce notice under Section 138.
02What the notice must contain
A recovery notice is only as strong as it is specific. It should set out:
- The exact amount: the principal due, and any interest you are claiming, with the rate and basis.
- The basis of the debt: the invoice, loan, agreement or transaction it arises from, with dates.
- A record of demands: any earlier reminders, so it is clear payment was sought before.
- A clear deadline: a reasonable time to pay, commonly 15 to 30 days.
- The consequence: that you will file a recovery suit, and claim costs and interest, if the deadline passes.
For the full structure and a drafting sample, see the legal notice format and sample.
03The three-year time limit
This is the point people get wrong most often. Under the Limitation Act, 1963, a suit to recover money is generally subject to a limitation of three years, counted from the date the money became due. If you wait beyond three years, you can lose the right to sue for that debt altogether.
Acknowledgement can restart the clock
If the debtor acknowledges the debt in writing and signs it, or makes a part payment, before the period runs out, the three years can start again from that date. A reply to your notice that admits the debt can therefore work in your favour.
Because of this, do not sit on an old debt, and do not send your notice so late that the limitation runs out while you wait for a reply. Send it with enough time left to file the suit afterwards.
04Who sends it and how
You can send a recovery notice yourself, but many people use an advocate so the amount, interest and legal basis are stated correctly and the demand carries more weight. Lawyer fees for a recovery notice vary by city and the size of the claim, so ask for a quote rather than assuming a fixed figure.
Send the notice by registered post with acknowledgement due, or by courier, to the debtor’s correct current address, and keep the posting receipt and the signed acknowledgement or delivery proof. Email can be used as additional proof. Keep a copy of the notice with all proof of sending, because you may need to produce it in the suit.
05What happens next
If the debtor pays or agrees a settlement, the matter ends. If they reply and dispute the debt, you have their position and can decide whether to negotiate or sue. If they ignore the notice, you can file a recovery suit after the deadline.
For many written money claims, such as a debt under a written contract, a bill of exchange or a promissory note, you can use the faster summary suit under Order 37 of the Code of Civil Procedure, where the defendant cannot defend as of right but must seek the court’s leave to defend. See how to file a money recovery summary suit and the Order 37 CPC summary suit notice format. For an ordinary debt without such a document, a regular civil suit is the route.
06Where Claw fits
Claw is an all-in-one legaltech platform for Indian advocates, law firms, and corporate legal teams, combining AI-based case search, an AI legal assistant (Legal GPT), case management, and compliance automation across all Indian courts and tribunals.
A recovery notice is quick to send; the suit that follows is not. Once you file, the matter runs through summons, leave to defend, evidence and arguments, and it is easy to lose track of the next date. Claw tracks cases, orders and hearings across 9,102 courts, benches and forums, so you can follow a recovery suit by party name and get the next hearing date and new orders as alerts. You can also search 30 crore+ judgments, with Supreme Court decisions from 1950 and High Court decisions from 1990, in under 5 seconds, to see how courts have dealt with similar debts, and Claw does not use your case documents to train its AI models.
Create a FREE Claw account to track your recovery matter if the notice turns into a suit, and use case search across Indian courts to follow it across every forum.
07Sources and further reading
- India Code (Limitation Act, 1963 and Code of Civil Procedure, bare text): indiacode.nic.in
- eCourts (case status of the recovery suit): ecourts.gov.in
- Claw: clawlaw.in
This guide is general information, not legal advice. The exact time limit and route depend on your facts, so check the current law or take advice from an advocate before you act.
08Frequently asked questions
Is a legal notice compulsory before a money recovery suit?
No, a civil recovery suit does not require a prior notice by law. But a notice is cheap, often gets you paid without a case, and an ignored notice is useful evidence, so it is almost always worth sending first.
What is the time limit to recover money in India?
Generally three years from the date the money became due, under the Limitation Act, 1963. If the debtor acknowledges the debt in writing, or makes a part payment, before the period ends, the three years can start again from that date.
What should a recovery notice say?
The exact amount due including any interest, the basis of the debt with dates, any earlier demands, a reasonable deadline to pay (often 15 to 30 days), and a clear warning that you will file a recovery suit if it is not paid.
What is an Order 37 summary suit?
It is a faster civil recovery route for certain written money claims, such as a debt under a written contract, a bill of exchange or a promissory note. The defendant cannot defend as of right and must seek the court’s leave to defend by disclosing a genuine defence.
Can I send the recovery notice myself?
Yes, a notice in your own name is valid. Many people use an advocate so the amount, interest and legal basis are correctly stated and the demand carries more weight. Lawyer fees vary, so ask for a quote.