Money Recovery Suit — How to File a Civil Case to Recover Money
When someone owes you money and refuses to pay — whether from a loan, a business transaction, unpaid invoices, or a bounced agreement — a money recovery suit is the legal remedy to get your money back through the court.
This is a civil suit filed under Section 26 and Order VII Rule 1 of the Code of Civil Procedure, 1908. The court, if satisfied, passes a money decree directing the defendant to pay the amount along with interest and costs. If they still refuse, the decree can be executed by attaching their property, freezing their bank accounts, or even arresting them.
- When to File a Money Recovery Suit
- Step-by-Step Procedure
- Limitation Period — How Much Time Do You Have
- Which Court to File In
- Regular Suit vs Summary Suit — Which is Faster
- Court Fees
- Documents Required
- Generate Your Complete Case File
- Applying for Interim Relief
- What Happens After the Decree — Execution
- Frequently Asked Questions
When to File a Money Recovery Suit
A money recovery suit is appropriate when all three conditions exist: there is a legally enforceable debt, the debtor has failed to pay despite demand, and you have evidence to prove the debt.
Common situations where this suit is filed:
- A personal loan given to someone who refuses to repay — whether with or without a promissory note.
- Unpaid invoices for goods supplied or services rendered to a business or individual.
- A business partner or associate who owes money from a commercial transaction.
- Rent arrears where the landlord seeks recovery of unpaid rent amounts (as opposed to eviction, which is a different suit).
- EMI or instalment payments defaulted on under a written agreement.
- Advance or deposit paid that the other party refuses to refund.
- A cheque was issued but cannot be pursued under Section 138 NI Act because the cheque was time-barred, or the notice was sent late, or the criminal complaint deadline was missed. The civil money recovery route remains available even when the criminal route under Section 138 is closed.
Step-by-Step Procedure
Send a Legal Notice Recommended
Before filing the suit, send a written legal notice to the debtor demanding repayment within 15 to 30 days. While not legally mandatory for private parties under the CPC, a pre-suit notice serves three important purposes: it creates a documented record that you attempted to resolve the matter without litigation, courts view it favourably when assessing costs and conduct of parties, and in many cases the notice itself prompts payment — saving you the expense and time of a lawsuit.
For suits against the government or public officers, a notice under Section 80 CPC is mandatory and must be served at least two months before filing the suit. Failure to serve this notice makes the suit liable to dismissal.
Determine Jurisdiction
Territorial jurisdiction (Section 20 CPC): File where the defendant resides or carries on business, or where the cause of action arose. If there are multiple defendants, you may file where any one of them resides or where the cause of action arose.
Pecuniary jurisdiction (Section 15 CPC): File in the court of the lowest grade competent to try the suit. If your claim is within the Junior Civil Judge's limit, do not file in the District Court. Pecuniary limits differ by state.
Special forums: Commercial dispute between businesses with suit value Rs 3 lakh or above → Commercial Court (with mandatory pre-institution mediation under Section 12A). Claim against a bank or FI exceeding Rs 20 lakh → Debts Recovery Tribunal (DRT).
Prepare and File the Plaint
The plaint under Order VII Rule 1 CPC must contain: names and addresses of all parties, facts constituting the cause of action, the cause of action paragraph, jurisdiction paragraph, limitation paragraph, valuation and court fee paragraph, and the prayer clause with the specific relief sought including principal, interest, and costs.
The plaint must be verified on oath by the plaintiff under Order VI Rules 14 and 15 CPC. File along with: vakalatnama, affidavit of the plaintiff, list of documents (Order VII Rule 14), and court fee stamps.
Summons, Written Statement, and Trial
After the plaint is accepted, the court issues summons to the defendant. The defendant must file a written statement within 30 days of service of summons, extendable up to a maximum of 90 days. No further extension beyond 90 days is permissible — the Supreme Court has held this limit to be mandatory following the CPC amendments of 2002.
If the defendant fails to file a written statement, the court may proceed ex parte. After written statements, the court frames issues, parties lead evidence through affidavits (Order XVIII Rule 4) followed by cross-examination, and after final arguments the court passes judgment and decree.
Decree and Execution
If the court passes a money decree in your favour, the defendant is directed to pay the decreed amount. If they do not pay voluntarily, file an Execution Petition under Order 21 CPC. The execution options — attachment of property, bank accounts, garnishee orders, and arrest — are detailed in the Execution section below.
Limitation Period — How Much Time Do You Have
The Limitation Act, 1963 prescribes strict time limits for filing suit. Once the limitation period expires, the court will reject the suit regardless of its merit — Section 3 of the Limitation Act makes this mandatory.
The general limitation period for money recovery is 3 years, but the starting point depends on the nature of the underlying debt:
| Nature of Debt | Limitation | Starting Point | Article |
|---|---|---|---|
| Contract in writing (registered or signed account stated) | 3 years | When money becomes payable or last debit/credit/payment | Art. 36 |
| Contract in writing (not registered) | 3 years | When the contract is broken | Art. 37 |
| Goods sold and delivered | 3 years | Date of delivery / expiry of credit period | Art. 22 |
| Money lent (without promissory note) | 3 years | Date when loan becomes repayable | Art. 19 |
| Promissory note payable on demand | 3 years | Date of the promissory note | Art. 20 |
| Promissory note payable after fixed period | 3 years | Date when the note falls due | Art. 19 |
| Compensation for breach of contract | 3 years | Date of breach | Art. 55 |
| Balance due on mutual account | 3 years | Close of the year in which last item is entered | Art. 1 |
Two provisions that can extend limitation:
Section 18 — Acknowledgment: If the debtor acknowledges the debt in writing and signs it before the limitation expires, the 3-year period restarts from the date of acknowledgment. A WhatsApp message, email, or letter saying "I will pay you back" can serve as acknowledgment if it is in writing and signed or sent from a verified account.
Section 19 — Part Payment: If the debtor makes a part payment before the limitation expires, the 3-year period restarts from the date of that payment. Even a small token payment restarts the full clock.
Use our Limitation Calculator → to check your exact deadline.
Which Court to File In
Territorial Jurisdiction — Section 20 CPC
You have a choice. File where the defendant resides or carries on business, or where the cause of action arose. If these are different locations, choose the one more convenient for you.
Pecuniary Jurisdiction — Varies by State
| State | Junior Civil Judge | Senior Civil Judge | District Court |
|---|---|---|---|
| Telangana | Up to ₹3,00,000 | ₹3,00,001 – ₹10,00,000 | Above ₹10,00,000 |
| Andhra Pradesh | Up to ₹3,00,000 | ₹3,00,001 – ₹10,00,000 | Above ₹10,00,000 |
| Karnataka | Up to ₹3,00,000 | ₹3,00,001 – ₹10,00,000 | Above ₹10,00,000 |
| Delhi | Up to ₹3,00,000 (Civil Judge) | — | ₹3,00,001 to ₹2 Cr (District Judge). Above ₹2 Cr: Delhi HC Original Side |
| Maharashtra | Up to ₹50,000 (Junior Division) | Above ₹50,000 (Senior Division — unlimited) | Appellate jurisdiction primarily |
Pecuniary limits are revised periodically by state governments. Verify with the court registry before filing.
Commercial Court (value ≥ ₹3 lakh): If this is a commercial dispute between two businesses, file in the Commercial Court under the Commercial Courts Act, 2015 — not the regular civil court. Mandatory pre-institution mediation under Section 12A applies (except where urgent interim relief is needed).
Debts Recovery Tribunal (claim > ₹20 lakh vs bank/FI): If the claim is against a bank or financial institution and exceeds Rs 20 lakh, file before the DRT under the Recovery of Debts and Bankruptcy Act, 1993 — not the civil court.
Use our Jurisdiction Calculator → to determine the exact court.
Regular Suit vs Summary Suit — Which is Faster
If your claim is based on a written contract or a negotiable instrument (promissory note, bill of exchange, cheque), you may file a summary suit under Order 37 CPC instead of a regular suit. This is significantly faster.
| Feature | Regular Suit (Order VII) | Summary Suit (Order 37) |
|---|---|---|
| Applicable for | Any money claim | Only claims on written contracts, negotiable instruments, or where an Act provides for debt recovery |
| Defendant's response | Written statement within 30–90 days | Must apply for "leave to defend" within 10 days of summons |
| If defendant does not respond | Court may proceed ex parte | Decree passed immediately |
| If defendant's defense has no merit | Full trial still proceeds | Court can reject leave to defend and pass decree immediately |
| Typical timeline | 2–5 years | 6–12 months |
| Interim relief | Available | Available |
Summary suits are particularly powerful when the debt is clearly documented — a signed loan agreement, a promissory note, unpaid invoices with acknowledged receipt. If the defendant cannot show a genuine triable defense, the court passes a decree without a full trial. Not all courts entertain summary suits — verify with the court registry whether Order 37 is available in that jurisdiction.
Court Fees
Court fees for money recovery suits are ad valorem — calculated as a percentage of the suit value. The fee structure varies by state.
As a general indication: for a suit of ₹5,00,000 in Telangana, the approximate court fee is ₹8,750. For ₹10,00,000, approximately ₹13,750. The exact amount depends on the applicable state Court Fees Act.
Court fee is paid through court fee stamps or challan at the time of filing. Ensure you pay the correct amount — an under-valued plaint can be returned for payment of deficit court fee, wasting time.
Use our Court Fee Calculator → for the exact fee for your suit value and state.
Documents Required for Filing
- Plaint — the main document describing your case, facts, cause of action, jurisdiction, limitation, valuation, and the relief sought.
- Vakalatnama — authorizing your advocate to appear and act on your behalf.
- Affidavit of the plaintiff — a sworn statement verifying the facts stated in the plaint.
- List of documents — an index of all documents you are relying upon, filed along with the plaint (Order VII Rule 14 CPC).
- Underlying transaction documents: For loans — loan agreement, promissory note, bank transfer receipts. For goods/services — purchase orders, invoices, delivery challans with acknowledgment. For business transactions — account statements, ledgers, email/WhatsApp communications confirming amounts.
- Demand notice and proof of dispatch — the legal notice you sent, along with the RPAD receipt and tracking report.
- Court fee stamps or challan of the required value.
- Documents supporting interest rate — the agreement or promissory note if a rate was agreed. If no rate was agreed, the court awards interest under Section 34 CPC at 6 to 12 percent per annum.
Generate Your Complete Case File
Fill one form. Get every document you need — plaint, affidavit, vakalatnama, list of documents — all with consistent party names and details from a single entry.
Complete Case File in 2 Minutes
Our system validates your limitation period and jurisdiction before generating — so you know instantly if your case is within time and in the right court.
First case file is free. No payment required — just sign up.
Applying for Interim Relief
While the suit is pending, you can protect your interests through interim applications:
Attachment Before Judgment — Order 38 Rules 5–12 CPC
If you have reason to believe the defendant is about to dispose of or remove property from the court's jurisdiction to defeat the eventual decree, apply for attachment before judgment. The court can freeze the defendant's property, bank accounts, or assets pending trial. You must show that the defendant is trying to obstruct execution of a future decree — a mere apprehension without evidence is not sufficient.
Temporary Injunction — Order 39 Rules 1–2 CPC
If the defendant is likely to transfer, sell, or damage property that would otherwise be available to satisfy the decree, apply for an injunction restraining them. The court considers three factors: whether you have a prima facie case, whether the balance of convenience favours granting the injunction, and whether you would suffer irreparable injury without it.
Arrest Before Judgment — Order 38 Rules 1–4 CPC
In extreme cases where the defendant is about to abscond or leave the court's jurisdiction to avoid the suit, the court can order their arrest. This is rarely granted and requires strong evidence of the defendant's intention to flee.
What Happens After the Decree — Execution
Getting a decree is half the battle. If the defendant does not pay voluntarily, file an Execution Petition under Order 21 CPC. The limitation for filing an execution petition is 12 years from the date of the decree (Article 136, Limitation Act).
The court can enforce the decree through:
- Attachment and sale of movable property — vehicles, machinery, stock, jewellery.
- Attachment and sale of immovable property — land, buildings, apartments.
- Attachment of bank accounts — the court directs the defendant's bank to freeze and transfer funds to satisfy the decree.
- Garnishee orders — if a third party owes money to the defendant, the court can direct that third party to pay you directly instead.
- Appointment of a receiver — the court appoints a receiver to manage the defendant's property and apply its income towards satisfying the decree.
- Arrest and civil imprisonment — as a last resort, if the defendant has the means to pay but wilfully refuses. Subject to conditions under Section 55 CPC; used sparingly.
A decree remains valid for 12 years, during which you can execute it whenever the debtor acquires assets. In practice, most debtors prefer to settle once a decree is passed because it affects their ability to obtain bank loans and can result in attachment of future earnings.