In business transactions or even in day to day life, one may face a situation where they have to ask for their own money back from someone. In these situations, a legal course of action could be of assistance. After having sent a legal notice for recovery of money, it must be understood that a formal warning has been issued to the person owing money, to pay back the due amount of money or else a legal process will be initiated against him or her.
A legal notice for recovery of money could be understood as a formal conversation between the parties before having initiated a legal action in order to recover the pending amount of money. A legal notice could be sent from anyone to any other person who owes him or her money, including individuals such as employee, tenant, friend, company, bank, etc.
Need A Legal Advice
The internet is not a lawyer and neither are you. Talk to a real lawyer about your legal issue
Recovery of Money in India
As already has been discussed, a legal notice is one of the most important and basic steps for recovery of money. A legal notice will generally be sent by an advocate on behalf of his/her client with an intention of settlement and also to communicate the will of his or her client so as to start the legal proceedings. A legal notice shall include the following-
- Name, description and address of the sender of the legal notice.
- Details related to the cause of action for which the legal notice has been issued.
- Monetary relief which has been claimed by the aggrieved party or the sender of the legal notice.
- Legal grounds on which such relief could be claimed.
Steps when drafting a Legal Notice
- A legal notice would have to be specific and proper and must be drafted on the letterhead of the respective advocate who has been appointed by the aggrieved party to issue such notice.
- A legal notice shall include the respective date on which such notice was issued as well as name, address and contact details of the receiver of the legal notice.
- When the legal notice for recovery of money is being issued from a client’s end, the name and details of the client must also be mentioned.
- It is required to be mentioned in the legal notice as to how the right of the sender has been infringed due to some act or omission of the recipient and the compensation so demanded. A particular amount of time is also required to be specifically mentioned in the notice as well under which the reply to the notice is being expected.
- Signature of the advocate must be included in the legal notice as well.
Time limit to receive reply of a legal notice
The time frame within which the receiver of the legal notice has to send a reply could be within 30-60 days from the date of having received the notice. It is important to note that the notice is drafted in such manner that the receiver would have no other option than to accept the terms mentioned in the legal notice by the sender of the notice, so as to prevent the process of a lengthy a legal proceeding
Conditions when legal notice for recovery of money can be sent
Tenant
Such situations where the tenant has not paid the rent to the landowner, resulting in a huge amount of money shall be accumulated, which the landowner is entitled to receive. In this situation, the landowner can send a legal notice for the eviction of the tenant.
Employee
In case an employee absconds with the money from his or her work place, a domestic enquiry would be initiated and a show-cause notice could be sent to the employee’s residential address.
Employer/Company
In a situation where an employer deprives his or her employees from their legitimate salary, several procedures have been provided so as to seek recovery of money, which shall include sending a legal notice as well.
Legal notice for recovery of money for loan
A tribunal for debt recovery has been established in every state which helps resolving these debt-related issues and the first step to initiate proceedings under such a tribunal would be by sending a legal notice for debt recovery from respective banks as well as financial institutions.
Dealer
In various business transactions, producers generally sell their products through distributors, hence keeping security deposits from dealers and distributors in the form of post-dated cheques.
Recovering money from a friend
In order to avoid any unpleasant confrontation related to money in the near future, it is advised that you offer a loan to your friends or family through either promissory notes or loan agreements.
Conclusion
Legal notice for recovery of money could be understood as a kind of formal conversation between two parties, hence informing the recipient of a possible upcoming legal action which shall be initiated so as to get the due payment of the sender.
In order to send a legal notice for recovery of money, it is advised that you appoint an experienced advocate who shall guide you through the proper legal procedure which is required to be followed as well as the appropriate legal language required for such an act.
Lead India offers you an experienced team of lawyers who have been for years successfully handling civil as well as criminal cases and can offer you appropriate advice and assistance as required. Therefore, if you wish to talk to a lawyer online or seek free legal advice, you may contact us.
Talk to a Lawyer