Legal notice for recovery of money is a formal intimation between two people warning the other before legal action is initiated to get their due payment. Believe it or not, you can also send a legal notice for recovery of money from a friend, in case he/she owes you a lot. To recover money from people who owe it to you, the role and importance of a legal notice for recovery of due becomes important. Legal notice for refund of money can be filed for anyone from a dealer to an employee, tenant, friend, company, bank, etc.
India on Recovery of Money
This is the era of entrepreneurship and start-up businesses which is clearly boosting the developing economy of the country towards the path of financial freedom. It is very unfortunate that according to IBM Institute for Business Value and Oxford Economics, more than 90% funded startups are shutting down within primary five years of their business because of negative cash inflow i.e. issues with the recovery of money. In most cases, due to the lack of strong legal support and prudent legal advisors, people failed to recover a huge amount of money from debtors which led to the closure of businesses or other financial instabilities.
As we discussed earlier, one of the crucial steps for recovery of money in India is to send a legal notice. The legal notice is generally issued by an advocate on behalf of his/her client for the purpose of soliciting a settlement. A legal notice must contain the following points:
- Name, description, and place of residence of the sender of the notice
- Details of the cause of action
- The monetary relief claimed by the sender of the notice
- The gist of the legal basis for the relief claimed
Steps to Drafting a Legal Notice
- The legal notice must be drafted in the letterhead of an advocate which is to be specific and proper.
- It should contain addresses and contact details of the advocate.
- The date on which the legal notice is issued including the name, address, and contact details of the person to whom the legal notice is issued is to be stated.
- Since the legal notice for recovery of money is going from the client’s end, the name and details of the client should be mentioned.
- It should be made clear in the notice as to how your right has been infringed due to the act or omission by the opposite party and for that what you want from him. A specific direction must be given to the opposite party along with a time limit.
- The notice must be signed (with date) by the advocate and the sender.
When & Why the Situation of Recovery of Money Arises?
There are several situations when it becomes necessary to opt for legal solutions. Among them, the most common are as follows:
Henceforth, in order to summarize all of the above mentioned legal remedies for recovery of money, it can be said that for recovery of money, civil remedies are available under Order 37 of The Code of Civil Procedure, 1908.
The Summary Suit and Criminal Remedies are available under Section 406 (criminal breach of trust), Section 420 (cheating), and Section 426 (mischief) of the Indian Penal Code, 1860. Above all, the most effective and primary step which can be taken is sending a legal notice for recovery of money in order to get your money safely & securely back.
You can also get a sample legal notice for recovery of money here. We at MyAdvo help you save your time and efforts by availing the pdf format of legal notice for recovery of money right here!
How to Find the Right Advocate?
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 Specific Relief Act, 1963 - An Act to define and amend the law relating to certain kinds of specific relief.
 The Indian Contract Act, 1872 - The Indian Contract Act, 1872 prescribes the law relating to contracts in India and is the key act regulating Indian contract law.
 Payment of Wages Act, 1936 - The Act applies to employed persons drawing average wages not exceeding Rs. 10,000/- Per Month.
 Industrial Disputes Act, 1947 - An Act to make provision for the investigation and settlement of industrial disputes, and for certain other purposes.
 The Code of Civil Procedure, 1908 - An Act to consolidate and amend the laws relating to the procedure of the Courts of Civil Judicature.
 Indian Penal Code 1860 - The Indian Penal Code (IPC) is the official criminal code of India. It is a comprehensive code intended to cover all substantive aspects of criminal law.
 Section 447 - Companies Act, 2013 - Punishment for fraud provided that where the fraud in question involves public interest, the term of imprisonment shall not be less than three years.
 The Negotiable Instruments Act, 1881 - This law defines these instruments and also deals with each type of them individually. It governs the use of cheques, promissory notes, and bills of exchange.