Recovery & Commercial Disputes
Money Recovery Lawyer in Bangalore: Suits, MSME Dues and Execution
We recover unpaid invoices, loans, advances and MSME dues through notices, suits, MSEFC references and execution, and we defend businesses and individuals on the receiving end of recovery claims. The route is chosen by the paper you hold, not by habit.
We aim to respond within 24 hours.
- Bengaluru civil and commercial courts & MSEFC
- Recoverability checked before anything is filed
- Confidential by default
- Pro bono Fridays, by prior appointment
How unpaid money actually gets recovered
Businesses and individuals call a money recovery lawyer in Bangalore at about the same point: the invoice is months old, the loan was due last year, and the promises have stopped converting into transfers. The law offers not one route but a toolkit, and the right choice depends on the paper you hold and the debtor you face. Time is the first constraint. Most money claims must be sued on within three years under the Limitation Act, 1963, though a written acknowledgment signed by the debtor before the period expires restarts the clock under Section 18. Dating the debt precisely is therefore the first thing we do, before any notice goes out.
Where the claim rests on an invoice, a written contract, a promissory note or a guarantee, a summary suit under Order 37 CPC can shortcut years of litigation: the debtor must seek leave to defend within ten days of the summons for judgment, and under IDBI Trusteeship Services v. Hubtown (2016) a frivolous defence is refused leave while an admitted amount must be deposited in court. Larger commercial claims of three lakh rupees and above go before the dedicated Commercial Courts in Bengaluru, where pre-institution mediation under Section 12A is mandatory unless urgent interim relief is sought, a requirement the Supreme Court enforced strictly in Patil Automation v. Rakheja Engineers (2022). Our guides on the money recovery suit and summary suits under Order 37 explain both tracks in detail.
Registered micro and small enterprises hold the strongest cards of all: payment within 45 days and compound interest at three times the bank rate under the MSMED Act, enforced through the Facilitation Council, as our guide on MSME delayed payment recovery sets out. A bounced cheque adds a criminal track under Section 138 of the Negotiable Instruments Act, 1881. For corporate debts, an insolvency demand notice can concentrate minds once the one crore threshold is met, though the Supreme Court made clear in Mobilox Innovations v. Kirusa Software (2017) that the IBC is not a recovery tool where a genuine dispute exists. And because a decree is not money, we treat execution, attachment, garnishee orders and asset examination as part of the case rather than an afterthought.
The law at a glance
45 days
Outer limit to pay an MSME
S.15, MSMED Act, 2006. Whatever the contract says, a buyer must pay a micro or small enterprise within 45 days of acceptance of the goods or services.
3x
Bank-rate compound interest
S.16, MSMED Act. Delayed payments to registered micro and small enterprises carry interest at three times the RBI bank rate, compounded monthly, without the supplier having to prove any loss.
3 yrs
Limitation for most money claims
Arts. 14, 15 and 113, Limitation Act, 1963. A written acknowledgment signed by the debtor before expiry restarts the period under S.18.
S.12A
Mediation before commercial suits
Commercial Courts Act, 2015. Pre-institution mediation is mandatory for commercial suits of specified value unless urgent interim relief is sought: Patil Automation v. Rakheja Engineers (2022).
Statutory positions as on the date of review. The MSMED (Amendment) Act, 2026, passed by Parliament in August 2026, takes effect on notification.
What we handle
How we help in money recovery matters
Six kinds of work make up this practice, on both sides of the ledger. Where a card links out, it opens our detailed guide on that subject.
The framework
The law your recovery will turn on
Four instruments do most of the work in recovery practice: the MSME statute with real teeth, the Code that supplies both the suits and the execution machinery, the commercial courts regime, and the Limitation Act that decides more cases than any of them.
Micro, Small and Medium Enterprises Development Act, 2006
- S.15
- S.16
- S.18
- S.19
Payment within 45 days, compound interest at three times the bank rate with monthly rests, reference to the Facilitation Council, and a 75 percent deposit before a buyer can challenge the award. The 2026 Amendment, passed by Parliament in August 2026, tightens timelines and enforcement once notified.
Code of Civil Procedure, 1908
- O.37
- O.38 R.5
- S.34
- O.21
- S.51
Summary suits on written contracts and negotiable instruments, attachment before judgment where assets are being moved, interest on decrees, and the execution machinery: attachment, garnishee orders, asset examination and, in narrow cases, arrest.
Commercial Courts Act, 2015
- S.2(1)(i)
- S.12A
Commercial disputes of specified value, three lakh rupees and above, go before the dedicated Commercial Courts in Bengaluru, with mandatory pre-institution mediation unless the suit contemplates urgent interim relief.
Limitation Act, 1963
- Art.14
- Art.15
- Art.113
- Art.136
- S.18
Three years for most money claims, twelve years to execute a decree, and a fresh period whenever the debtor acknowledges the debt in signed writing before time runs out. This Act quietly decides more recovery cases than any other.
Our approach
Date the debt, pick the track, protect the assets
The order of these steps is the strategy. Notices sent in anger, suits filed on the wrong track and decrees with no execution plan are how good claims die.
- 1
Paper audit and limitation check
Week 1Invoices, contract, ledger, emails and cheques are dated and matched against the Limitation Act. If an acknowledgment or part payment has restarted the clock, we record it; if time is nearly out, we file first and negotiate after.
- 2
Demand notice, built for the chosen forum
Week 1-3One notice can set up several tracks: the civil suit, the MSEFC reference, the S.138 clock or an IBC demand. Many matters settle at this stage, because the notice shows the debtor the interest arithmetic and the deposits he will face later.
- 3
Filing and interim protection
Month 1-3Summary suit, ordinary suit, commercial suit after S.12A mediation, MSEFC reference or complaint, as the paper dictates. Where the debtor is moving assets, we seek attachment before judgment under Order 38 Rule 5 CPC.
- 4
Decree or award, then execution
Runs with the caseA decree is not money. Execution under Order 21 follows the assets: bank accounts, receivables, property, salary. MSEFC awards carry their own advantage, the 75 percent deposit a buyer must make before any challenge is heard.
Durations are indicative and vary with the forum and the debtor. Interest keeps running through most of it.
Choosing a route
The five recovery tracks, compared
Five tools, one question: which combination gets this particular debtor to pay? The answer depends on the paper you hold, your registration status, and how much dispute the other side can honestly manufacture.
| Summary suit (O.37 CPC) | Ordinary money suit | MSEFC reference (MSMED) | Cheque bounce (S.138 NI Act) | IBC demand notice (S.8) | |
|---|---|---|---|---|---|
| Fits when | The claim is a debt or liquidated sum on a written contract, invoice, promissory note or guarantee | Any money claim, including disputed accounts, damages and unliquidated sums | A Udyam-registered micro or small enterprise is owed for goods or services | A cheque for the debt has been returned unpaid | An undisputed operational debt of one crore rupees or more against a company |
| Speed (indicative) | Months where leave to defend is refused; the defence must earn a trial | 2-5 years to decree in Bengaluru, before execution begins | The Act expects a decision in 90 days; 6-18 months is common in practice | 1-3 years to verdict; settlement pressure works much earlier | Weeks for the pressure to tell, months for NCLT admission |
| Cost and risk | Court fee on the claim; if leave is granted, the suit runs as an ordinary one | Court fee on the claim; the longest road and the most patience | Modest filing burden; the buyer must deposit 75 percent of any award to challenge it | Criminal complaint with modest fees; fatal if the notice timeline slips | High stakes; a genuine pre-existing dispute defeats it (Mobilox, 2017) |
| What you get | A money decree, often with contract interest | A money decree with interest under S.34 CPC | An award or settlement carrying compound interest at three times the bank rate | Fine up to twice the cheque amount, interim compensation up to 20 percent, real leverage | Payment under the threat of insolvency; not a money decree |
Indicative comparisons, not commitments. Tracks can run in parallel, and the notice that starts one often sets up another.
Where you might be right now
Situations we handle every week
Most recovery files arrive as one of these six situations. Where a cheque is involved, our guide to the cheque bounce demand notice covers the format and the timeline.
Invoices unpaid for months, buyer still promising?
Every month of politeness costs limitation and interest. We date the debt, send a notice with the arithmetic spelt out, and choose the track before the file gets any older.
Holding a cheque that just bounced?
The clock is unforgiving: a demand within 30 days of the return memo, 15 days for the drawer to pay, a complaint within a month after that. Send us the memo the day the bank issues it.
Written contract, signed ledger or admitted balance?
That paper may qualify for a summary suit under Order 37 CPC, where the debtor must persuade the court to let him defend at all. Admissions in emails and ledgers can also restart limitation.
Registered MSME with a large buyer sitting on bills?
Sections 15 and 16 of the MSMED Act were written for you: payment within 45 days, then compound interest at three times the bank rate. We file the Samadhaan reference and argue it before MSEFC, Bengaluru.
Decree in hand, not a rupee recovered?
Execution is its own campaign. We trace assets, attach bank accounts and receivables through garnishee orders, and put the judgment debtor on oath about what he owns.
On the receiving end of a recovery claim?
We defend too: leave to defend in summary suits, replies that place a genuine dispute on record against IBC notices, and challenges to SARFAESI measures before the DRT within the 45-day window under S.17.
Fees, honestly
How we charge, and a note from practice
Recovery is arithmetic before it is advocacy. A claim is worth pursuing when what the debtor can pay, less what the pursuit will cost, is still a number that matters to you. That is the first calculation we do, and we show you the working before any fee is agreed.
- The first assessment is a recoverability check, not a pitch: limitation, the quality of your paper, and what the debtor visibly owns. If a suit will cost more than it can return, we say so at the start.
- Fixed fees for defined work: demand notices, MSME Samadhaan references and S.138 complaints are quoted as one figure before we begin.
- Stage-wise fees for suits and execution: pleadings, evidence, arguments and execution are priced as stages in the engagement letter, so you can pause at any gate.
- No recovery is ever promised. Interest projections are shown as calculations under the contract or the statute, not as assurances of outcome.
Talk to a money recovery lawyer in Bangalore before the debt gets older
Bring the invoices, the contract and the correspondence. We will tell you candidly what is recoverable, by which route, and what it should cost. Friday is our pro bono day: send the question in first and we confirm a slot as availability allows.
Every enquiry is privileged and confidential. Nothing you share leaves this firm.
Frequently Asked Questions
How long do I have to sue for unpaid money in India?+−
Three years for most money claims under the Limitation Act, 1963: from delivery for goods sold (Article 14), from expiry of the agreed credit period (Article 15), and from when the right to sue accrues for claims with no specific article (Article 113). A written acknowledgment signed by the debtor before the period expires restarts the clock under Section 18, which is why we date every debt before choosing a route.
What is a summary suit under Order 37 CPC and when does it fit?+−
A summary suit is a fast-track money suit available on bills of exchange, promissory notes and claims for a debt or liquidated sum arising on a written contract, an enactment or a guarantee. The defendant cannot defend as of right: he must enter appearance within ten days of service and apply for leave to defend within ten days of the summons for judgment. If no leave is granted, the court decrees the claim without a trial.
When will a court refuse the debtor leave to defend a summary suit?+−
The Supreme Court restated the tests in IDBI Trusteeship Services v. Hubtown (2016). A substantial defence earns unconditional leave; genuine triable issues ordinarily do too; a plausible but improbable defence can be put on terms such as deposit or security; and a frivolous or vexatious defence is refused leave altogether. Where the debtor admits part of the claim, leave is conditional on depositing the admitted amount in court.
What extra rights do I get if my business is a registered MSME?+−
Serious ones. If you are a Udyam-registered micro or small enterprise, the buyer must pay you within a maximum of 45 days of acceptance under Section 15 of the MSMED Act, 2006, failing which interest runs automatically at three times the RBI bank rate, compounded monthly, under Section 16. You can then refer the dispute to the Facilitation Council through the MSME Samadhaan portal. A Bengaluru supplier files before MSEFC, Bengaluru at Khanija Bhavan, even if the buyer sits in another State.
The contract has an arbitration clause. Can I still go to the MSEFC?+−
Yes. In Gujarat State Civil Supplies Corporation v. Mahakali Foods (2022) the Supreme Court held that Chapter V of the MSMED Act overrides the Arbitration and Conciliation Act, 1996, so a registered micro or small supplier can make a Section 18 reference despite an independent arbitration clause. The council first attempts settlement and then arbitrates the dispute itself or through an institution, and the resulting award enjoys the Section 19 deposit protection.