A money recovery suit in India is a civil case filed to recover a fixed sum of money that someone owes you and refuses to pay — an unpaid loan, an unsettled invoice, a returned security deposit, or a dishonoured cheque amount. You file it as a civil suit under the Code of Civil Procedure, 1908 (CPC) in the court that has the right jurisdiction, and you must do so within the limitation period fixed by the Limitation Act, 1963 (usually three years from when the money became due). This guide explains the procedure, the limitation rules, and the court fees in plain language.
The aim here is to help you understand the process before you decide anything. It is general legal information, not advice on your specific dispute.
What is a money recovery suit?
A money recovery suit is a civil action where the plaintiff (the person owed) asks the court to pass a decree directing the defendant (the person who owes) to pay a definite amount, usually with interest and costs. It is one of the most common matters handled in civil litigation.
Recovery claims typically arise from:
- Loans and advances that were never repaid, with or without a written agreement.
- Unpaid business invoices for goods supplied or services rendered.
- Dishonoured cheques — though a cheque bounce can also be pursued criminally under Section 138 of the Negotiable Instruments Act, 1881, a civil recovery suit runs in parallel for the money itself.
- Security deposits or earnest money wrongfully retained.
- Breach of contract where a fixed sum is due.
A key practical point: a money suit works best where the amount is liquidated (a clear, ascertainable figure). If your claim depends on the court estimating damages, the framing changes.
The procedure for filing a money recovery suit
The CPC governs the procedure. The broad sequence is below.
Step 1 — Send a legal notice (recommended)
Before filing, most claimants send a formal demand or legal notice giving the debtor a window (commonly 15–30 days) to pay. It is not always legally compulsory for a private money suit, but it creates a documentary record, sometimes triggers payment without litigation, and can support a fresh limitation start if the debtor acknowledges the debt in writing.
Step 2 — Identify the correct court (jurisdiction)
Two questions decide where you file:
- Pecuniary jurisdiction — which level of court can hear a claim of that value. This varies by State and is set by the High Court / State rules, so the threshold differs between, say, Karnataka and Maharashtra.
- Territorial jurisdiction — under Sections 15 to 20 CPC, generally where the defendant resides or carries on business, or where the cause of action (wholly or partly) arose.
Step 3 — Draft and file the plaint
The plaint is the foundational document. Under Order VII CPC it must set out the parties, the facts (cause of action), the jurisdiction, the limitation position, the amount claimed, and the relief sought. It is filed with supporting documents (the agreement, invoices, cheques, ledger, statement of account, notice and acknowledgements) and the requisite court fee.
Step 4 — Summons to the defendant
Once the suit is registered, the court issues summons (Order V CPC) directing the defendant to appear and file a written statement, usually within 30 days, extendable up to 90 days in the court's discretion.
Step 5 — Written statement, framing of issues, evidence
The defendant files a written statement (Order VIII). The court then frames the issues in dispute (Order XIV), parties lead evidence and witnesses are cross-examined, followed by final arguments.
Step 6 — Judgment and decree
The court delivers judgment and draws up a decree for the sum found due, with interest and costs as it thinks fit.
Step 7 — Execution
A decree is not money in hand. If the debtor still does not pay, you file execution proceedings under Order XXI CPC — the court can attach and sell property, attach bank accounts, or in limited cases order arrest.
The faster route: Order 37 CPC summary suit
For certain claims — those based on a written contract, a bill of exchange, a promissory note, or a cheque — the CPC offers a quicker summary procedure under Order 37. Here the defendant cannot defend as of right; they must first apply for leave to defend, and the court grants it only if a genuine triable issue is shown. If leave is refused or not sought, the plaintiff is entitled to judgment. This is the standard, faster path for recovering money on instruments like cheques and signed acknowledgements of debt — see our guide on the Order 37 CPC summary suit.
Limitation: how long you have to file
Limitation is the deadline. Under the Limitation Act, 1963, if you file after the period expires, the suit is liable to be dismissed as time-barred (Section 3) even if the debt is genuine — so this is the first thing to check.
| Type of claim | Relevant Article (Limitation Act, 1963) | Limitation period | Starts from |
|---|---|---|---|
| Money lent / payable for goods or services | Generally Articles 18–22 | 3 years | When the loan/amount becomes due |
| Money payable on a written acknowledgement of debt | Section 18 read with the relevant Article | 3 years (fresh) | Date of the signed acknowledgement |
| Suit on a promissory note / bill of exchange payable on demand | Article 21 / related | 3 years | Date of the instrument |
| Suit for a sum on an account stated | Article 26 | 3 years | When the account is stated |
Two devices can save a claim that looks close to the deadline:
- Acknowledgement of debt (Section 18): if the debtor signs an admission of the debt before limitation expires, a fresh three-year period runs from that date.
- Part-payment (Section 19): a part-payment of the debt, with the fact recorded in writing/signed, can similarly start a fresh period.
Note on labels: criminal statutes have changed — the Indian Penal Code (IPC) is now the Bharatiya Nyaya Sanhita (BNS) and the Code of Criminal Procedure (CrPC) is now the Bharatiya Nagarik Suraksha Sanhita (BNSS). A civil money recovery suit is still governed by the CPC and the Limitation Act, which were not replaced — but always verify the current text of any section before relying on it.
Court fees in a money recovery suit
Court fees on a money suit are ad valorem — they scale with the amount you claim. The fee is governed by the Court Fees Act, 1870 as amended and by the State Court Fees Act of the State where you file, so the exact percentage and any cap differ from State to State (Karnataka, Maharashtra, Delhi and others each have their own schedule).
| Cost head | What it is | Typical basis |
|---|---|---|
| Court fee (ad valorem) | Statutory fee on the plaint | A percentage of the claim, per the State schedule, sometimes capped |
| Advocate's fee | Professional fee | As agreed; varies with complexity and stage |
| Process / service fee | Serving summons | Nominal, fixed by court |
| Miscellaneous | Affidavits, certified copies, documentation | Variable |
Because the court fee tracks the claim amount, inflating the claim raises your upfront cost, while under-claiming can bar you from recovering the balance later. Getting the figure right at the plaint stage matters. For a current rate, check your State's court fee schedule rather than relying on a generic percentage.
Money suit vs. cheque bounce complaint: which route?
If your money is tied to a dishonoured cheque, you often have both a civil and a criminal option.
| Feature | Money recovery suit (civil) | Cheque bounce case (criminal, S.138 NI Act) |
|---|---|---|
| Goal | Recover the sum (decree) | Punish dishonour; compensation possible |
| Governing law | CPC + Limitation Act 1963 | Negotiable Instruments Act, 1881 |
| Trigger | Debt due and unpaid | Cheque dishonoured + statutory notice unmet |
| Outcome | Decree, then execution | Fine (up to twice the cheque amount) / imprisonment |
| Can run together? | Yes — civil + criminal can be pursued in parallel | Yes |
Many claimants pursue both: the criminal complaint adds pressure, while the civil suit secures an enforceable decree for the money.
Practical tips before you file
- Gather every document that proves the debt and its due date — this drives both your case and your limitation calculation.
- Check the limitation clock first; if it is near expiry, look for a written acknowledgement or part-payment.
- Consider the Order 37 route if your claim rests on a cheque, promissory note, or written contract.
- Budget for execution, not just the decree — winning on paper is only half the recovery.
To understand how disputes like these are run end to end, visit our civil litigation practice. The full text of the Limitation Act, 1963 is available on the Government of India's India Code portal.
Frequently Asked Questions
What is the limitation period for a money recovery suit in India?
For most money claims it is three years, counted from the date the money became due, under the Limitation Act, 1963. A suit filed after this is generally time-barred unless a written acknowledgement or part-payment restarted the clock.
Can I file a money recovery suit without a written agreement?
Yes. You can rely on other proof such as invoices, bank transfers, messages, ledgers, witnesses, or a dishonoured cheque. A written contract makes the case stronger and may open the faster Order 37 route, but it is not always essential.
How much are the court fees for a money recovery suit?
Court fees are ad valorem, calculated as a percentage of the amount claimed under the Court Fees Act and your State's schedule. The exact rate and any cap vary by State, so check the local schedule.
What is an Order 37 summary suit?
It is a faster CPC procedure for claims on a written contract, bill of exchange, promissory note, or cheque. The defendant cannot defend as of right and must seek the court's leave to defend; if none is granted, the plaintiff can get judgment quickly.
Can I file both a cheque bounce case and a money recovery suit?
Yes. A cheque bounce complaint under Section 138 of the Negotiable Instruments Act (criminal) and a civil money recovery suit can run in parallel — one seeks punishment, the other an enforceable decree for the money.
What happens after I win the suit?
The court passes a decree. If the debtor still does not pay, you file execution proceedings under Order XXI CPC, where the court can attach bank accounts or property to satisfy the decree.
Which court do I file a money recovery suit in?
The court with the right pecuniary jurisdiction (based on the claim value, per State rules) and territorial jurisdiction under Sections 15 to 20 CPC, usually where the defendant resides or works, or where the cause of action arose.
Does sending a legal notice restart the limitation period?
A notice by itself does not. But if the debtor responds with a signed acknowledgement of the debt, Section 18 of the Limitation Act can start a fresh three-year period from that acknowledgement.
This article is for general informational purposes only and does not constitute legal advice. Laws change and every situation is different; please consult a qualified advocate about your specific matter.
