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DRAFTING, PLEADING AND CONVEYANCING

DRAFT A SUIT FOR RECOVERY OF MONEY


PROJECT SUBMITTED TO:
Mr. Shreyas Vyas
(Faculty: Drafting, Pleading & Conveyancing)

PROJECT SUBMITTED BY:


Sneh Shrivastava

Roll No.- 153

Semester- VIII

HIDAYATULLAH NATIONAL LAW UNIVERSITY,


RAIPUR, CHHATTISGARH
Submitted On 15th February-2017

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DECLARATION

I hereby declare that the project work entitled Draft a Suit for Recovery of Money,
submitted on 15th February 2017, in HNLU is record of an original work done by me under
the able guidance of faculty of Drafting, Pleading and Conveyancing.

-Sneh Shrivastava

-Roll No.- 153

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CERTIFICATE
This is to certify that Sneh Shrivastava of SEMESTER-VII, BATCH-2013 has successfully
completed the project work assigned in COMPETITION LAW, by Mr. Shreyas Vyas
(Faculty: Drafting, Pleading & Conveyancing)
of Hidayatullah National Law University, in the year 2017. It is further certified that this
project is the individual work of the candidate.

Signature: Sneh Shrivastava

Semester: VIII

Section: A

Batch: 2013

Date: 15-February-2017

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ACKNOWLEDGEMENT

I take this opportunity to express my profound gratitude and deep regards to my

teacher Mr. Shreyas Vyas for his exemplary guidance and encouragement throughout the

course of this project. The blessing help and guidance given by him time to time shall carry

me a long way in the journey of life on which I am about to embark.

I also take this opportunity to express a deep sense of gratitude to IT lab staff and

library staff for their cordial support, valuable information and guidance which helped me in

completing this task efficiently.

Lastly, I thank almighty, my family, friends for their constant encouragement and

help without which this assignment would not be possible.

Sneh Shrivastava
Sem-8
Sec- A
Roll no.- 153

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LIST OF ABBREVIATIONS
& AND
Section
AIR All India Reporter
CCI Competition Commission of India
Ec European Commission
Ed. Edition
Etc. Et Citra.
Ors. Others
P. Page Number
Rev. Revised
SC Supreme Court
SCC Supreme Court Cases
V. versus
Vol. Volume

LIST OF CASES
Neebha Kapoor v Jayantilal Khandwala; AIR 2008 SC 1117

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TABLE OF CONTENTS

SL. No. TOPIC Pg. No.

1. List of Abbreviations 5

2. List of cases 5

3. Introduction 7

4. Research methodology and Objectives 9

5. Chapter 1: Recovery of Money under Indian Law 10

6. 12
Chapter 2: Procedure for Money Recovery under Civil Suits

8. Chapter 3: Summary Suits: Order XXXVII of CPC, 1908 14

9. Chapter 4: Other Approaches for Recovery of Money 17

10. Suit for Recovery of Money under Order XXXVII 19

11. Conclusion 23

12. Bibiography And Webliography 24

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INTRODUCTION
There are number of ways where an individual can seek legal action against
the wrongdoer considering the nature of action which means the matter can be of civil nature,
it can be of criminal nature or there can be an out of court settlement as well if parties agreed
for the same. Remedies also differs according to the nature of the matter, remedies of civil
matter differs from remedies available for criminal matter.
Before legal action is taken against a debtor, the claim should be brought to his or her notice
to make sure that the debtor is aware of the fact that the debt has not been paid back. A letter
should be sent to the debtor containing important details and specifics. This should include
information concerning the debt, for instance, how the debt was incurred, the original amount
of the debt, when the last payment was made, and the current amount that is due to be paid
back. The letter should also mention information regarding the payment arrangement,
providing the debtor with a phone number or an address in order to get back to the creditor.
Most importantly, a due date should be provided to the debtor mentioning by which date he
or she must make payment arrangements in totality. The idea is to choose a reasonable date
and allow the debtor some time after he or she reads the letter to repay the debt. Also time
must be given for the debtor to respond. At this stage, it is better to motivate the debtor rather
than throw him/her into panic. A copy of this correspondence should be saved.

If this date passes without any payment of the debt being made or any indication of it being
paid in the near future, one could send a letter of demand from a lawyers office, before
commencing any legal action. The problem may be solved by way of negotiation.

If this too fails, either by way of the debtor not responding or refusing to make the payments,
it may be necessary to institute legal proceedings against the debtor. Relevant papers in ones
possession that are related to the amount due (debt)debt or any documents of a similar sort
including a copy of the correspondence between oneself and the debtor should be kept.

The limitation period for filing a civil recovery suit in India is 3 years. After that the claim is
barred by time. It is imperative to decide which Court of law one should file their suit for
recovery. In India, according to the Civil Procedure Jurisdiction, the pecuniary or monetary
jurisdiction of the Courts depends on the state in which the cause of action arises. The
pecuniary jurisdiction of the Court divides the Court on a vertical basis, which means that
depending on the valuation of the suit filed, there are different levels of Courts with different

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monetary jurisdictions, and the suit will have to be instituted in the Court which has the
required jurisdiction.
It is essential to remember that the amount of pecuniary jurisdiction is different for all High
Courts in India. This limit is decided by respective High Court Rules and in many states the
High Court has no pecuniary jurisdiction. All civil suits go before the District Courts, and
only appeals lie before the High Court. The creditor, that is the one who owes the will have
to determine in which Court the claim can be filed, which in turn shall be determined in
accordance with the amount claimed. If the Court finds that it has no jurisdiction to entertain
the, it shall transfer the suit to the Court having jurisdiction. In order to verify the pecuniary
jurisdiction of the Courts in a particular state, one must refer to the rules determining the
pecuniary jurisdiction of the district courts which have original jurisdiction1.

1
Civil Procedure with Limitation Act, 1963 by C.K. Takwani (Thakker), 7th Edition, 2013, Reprinted 2015

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RESEARCH METHODOLOGY

Issues:

How can money be recovered under Indian laws?


Procedure for instituting a suit for recovery of money under Indian laws?
Drafting a suit for recovery of money.

Importance of the study: The rationale behind this project is to determine the various
modes and means under which a suit can be instituted in the court of law of the the recovery
of money

Objectives:

To get a detailed insight into the modes of filing suit for the recovery of money.
Learn formalities involved in drafting a summary suit for recovery of money.
Review of Literature: The research methodology used in this project is doctrinal or non-
empirical research, it is descriptive and analytical in nature. Secondary and electronic
resources are the major resources used here. National Law University Library has been used
for research purpose. Various books, articles and websites have been referred for the same.
Secondary and electronic resources have been largely used to gather information and data
about the topic. Books and other references have been primarily helpful in giving this project
a firm structure. Websites, dictionaries and articles have also been referred.
Nature of Study: The research methodology used in this project is doctrinal or non-
empirical research, it is descriptive and analytical in nature. Secondary and electronic
resources are the major resources used here.
Limitations: This project report majorly focuses on the suit for recovery of money under
Indian laws

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CHAPTER 1: RECOVERY OF MONEY UNDER INDIAN LAW


There are number of ways where an individual can seek legal action for recovering money
from the wrong doer considering the nature of action which means the matter can be of civil
nature, it can be of criminal nature or there can be an out of court settlement as well if parties
agreed for the same. Remedies also differs according to the nature of the matter, remedies of
civil matter differs from remedies available for criminal matter.
[1.1]REMEDIES AVAILABLE UNDER CIVIL LAW

The most well-known common solution for recovering money is Order 37 of the Civil
Procedure Code, which permits a bank/creditor to file a summary suit. Contrasted with
normal suits, summary suits are discarded speedier. Once the suit is established and the
summons are issued, the defendant has 10 days to show up, failing to appear in the court
means the court accept the plaintiff party s charges to be valid and, as needs be, awards the
plaintiff. In the event that the respondent shows up, the court acknowledges or accepts his
defence just on the off chance that it is persuaded that it is considerable to the case being
referred to. Where the matter concerns punishments or whatever other indeterminate sum,
one cant file a summary suit.

Another alternative is the Negotiable Instruments Act, 1881, which deals with the
recuperation of money emerging from instruments, for example, bills of trade or cheques.
The Act contains a few sections, each illustrating the method for recovering money under a
particular instrument. For an instance, Section 138 explains the method/procedure to deal
with a bounced cheque, whereby a legal notification is to be sent to the defaulter within 30
days of receiving the cheque return notice. In the event that the check guarantor neglects to
make a new payment within 30 days of accepting the notice, the payee has the right to file a
criminal complaint under this Section. Nevertheless, the complaint ought to be registered in a
judges court within a month of the expiry of the notice period, generally your suit will be
time-barred. In the event that discovered liable, the defaulter can be punished with a jail term
of two years and/or a fine, which can be as high as double the cheque amount.

[1.2]REMEDIES AVAILABLE UNDER CRIMINAL LAW

You additionally have the alternative of starting criminal procedures against the defaulter
under the Indian Penal Code, 1860. You can either record an instance of criminal breach of
trust or cheating, or even under mischief. Be that as it may, a criminal procedure as a rule

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takes quite a while to finish up. So you may wind up squandering valuable time and exertion
in court to recover your amount.

[1.3]OUT OF COURT SETTLEMENTS

One of the quickest and most economical methods for recovering money is to choose an out-
of-court settlement, for example, mediation, arbitration or conciliation gave that the other
party is likewise eager to settle in this way. On the off chance that the matter is referred to an
arbitrator, the latter hears both the parties and passes an award authoritative on both. The
award must be advanced on three grounds. One, on the off chance that it is invalid, two, if the
defendant is not given satisfactory time to present the case, and three, in the event that he was
not informed about the appointment of arbitrator . Indeed, if a proposition by an inter
ministerial group set up a year ago to investigate approach and authoritative changes to
handle the vast number of pending cases is acknowledged, then the cases of dishonored
cheques will must be chosen just through mediation or arbitration, assuagement/conciliation
or settlement by lok adalats.

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CHAPTER 2: PROCEDURE FOR MONEY RECOVERY UNDER CIVIL


SUITS
The people sometimes land themselves and termed the transaction as a bad debt and failed to
recover money to whom they had given in cash / kind (eg. supplied goods / provided services
etc.). To recover the same, one often felt very difficult and some people start searching some
via-media through whom they can recover their money. Under our legal and justice delivery
system one has to opt for approaching the Hon'ble Court for recovery of their money (so
given or required to be recovered against any of their deposit, payment, supply or services).

For recovery of money the essential documents include how the transactions were made and
the payment (if any) were made and refund (if any) were assured. It is not that in absence of
any written document no suit for recovery of money be filed or recovered. All that is required
to be seen in any case is that what are the oral and verbal evidence an individual or agency
got.

Upon advice, individual or any agency, often prefer filing the summery suit for recovery as
against the ordinary suit for recovery. No doubt the provision being a summery one often
decided at a pace as against the normal suits. However, on the contrary it gets prolonged, in
case is caught under any triable issues. (Triable Issues : The cases which are required to be
proved through trial before the Hon'ble Court i.e. recording of evidence of both the parties by
way of oral examination and document in support thereof = Filing of affidavit by way of
evidence by both the parties and examination of the witnesses in chief and cross examination
and re-examination (if any) and evidence in rebuttal (if any) and admission / denial of
documents and exhibiting the documents)2.

Before filing any suit for recovery under order XXXVII one must ensure as to how the
provisions of order XXXVII are complied with. On these issues in any ordinary suit for
recovery one may also avail the provisions like section 26 read with order 7 rule 2 or order 12
rule 6 and order 39 rule 10.

Two approaches:

If written Contract or Agreement is there then a summary suit under order 37 of


CPC, 1908 is to be filed.

2
Contracts. Illegal Contracts. Recovery of Money Paid, Virginia Law Review, Vol. 4

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If written Contract or Agreement is not there then a simple civil recovery suit will be
filed on the basis of facts and circumstances of the case3.

3
http://www.indiadebtrecovery.com/indian-law/indian-civil-criminal-proceedings/summary-procedure.html

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CHAPTER 3: SUMMARY SUITS: ORDER XXXVII OF CPC, 1908

Civil litigation, especially recovery suits generally termed to be a long drawn battle and
regarded as something best avoided, is not so. The general belief that by filing a recovery Suit
against a Debtor will go on for years at large, is not so, if one knows the real scope of Order
37 of the Civil Procedure Code, 1908.

Order 37 CPC is one of the best provisions in the hands of a proposed Plaintiff, wanting to
institute a Civil Suit. Broadly it states as under:

Rule 1, Sub-Rule 2 makes it applicable to all suits upon bills of exchange, hundies and
promissory notes or the ones in which a Plaintiff seeks only to recover a debt or liquidated
demand in money payable on a written contract, an enactment, where the sum to be recovered
is a fixed sum of money or in nature of any debt except penalty, a guarantee - in respect of a
debt or liquidated demand.

Rule 2 requires an Order 37 Suit to contain among others, a specific averment that the Suit is
filed under this Order and no relief which does not fall within the ambit of this Rule is
claimed.

Under Order 37, there are two stages of getting the Suit decreed. One is at the stage of Rule
2(3) and the other is at the stage of Rule 2(6)4.

Rule 2(3) states the procedure for appearance of Defendant which is within 10 days from the
service of the summons on him. After entering appearance, the Plaintiff serves on the
Defendant summons for judgment within ten days from the date of service supported by an
Affidavit; verifying the cause of action, amount claimed and that in his belief there is no
defence to the suit.

Rule 2(6) states that in case the Defendant does not apply for a leave to defend, (a) the
Plaintiff shall be entitled to judgment immediately or (b) the Court may direct the Defendant
to give such security as it may deem fit. Sub-clause 7 states that in case sufficient cause is
shown, the delay in entering an appearance or in applying for leave to defend the Suit may
also be excused.

4
http://www.legalservicesindia.com/article/article/order-37-cpc-summary-suits-1514-1.html

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Rule 2(5) further states that the Defendant may within 10 days from service of such summons
for judgment by Affidavit or otherwise disclose such facts as may be deemed sufficient to
entitle him to defend, apply for leave to defend and it may be granted to him unconditionally
or upon such terms as may appear to the Court to be just 5. Further, the proviso indicates that
leave to defend shall not be refused unless the Court is satisfied that the facts disclosed do not
indicate a substantial defence or that the defence is frivolous or vexatious.

[3.1] A BOON IN THE HANDS OF THE PLAINTIFF

The real benefit of an Order 37 Suit is that unless the Defendant is able to demonstrate that he
has a substantial defence in his case, the Plaintiff is entitled to a judgment immediately. This
in laymans language means that the stages of filing a WS within 30 days and not later than
90 days, a rejoinder thereafter, admission/denial of documents, framing of issues by Court,
leading evidence, cross-examination by parties, final arguments and then finally the
judgment/decree, in an ordinary Civil Suit gets eliminated. So all that a Plaintiff has to show
is that it is a case which falls within the ambit of Order 37. Once summons is issued, the ball
is in the Court of the Defendant to show that he is entitled to a leave to defend, on grant of
which the Order 37 Suit becomes an ordinary Civil Suit and the Defendant is then directed to
file his WS within 30 days.

Case:

Neebha Kapoor v Jayantilal Khandwala6, Supreme Court said the underlying public policy
behind Order 37 is expeditious disposal of suits of commercial nature. It provides for such
disposal as expeditiously as possible by prescribing time frame therefore.

[3.2] INSTITUTION OF SUMMARY SUITS


A suit, to which this order applies, may if the plaintiff desires to proceed hereunder, be
instituted by presenting a plaint which shall contain-
Specific averment to the effect that the suit is filed under this order: that no relief,
which does not fall with in the ambit of this rule, has been claimed in the plaint:

5
http://lawfarm.in/blogs/what-can-you-do-if-someone-owes-you-money-and-does-not-pay-you-back

6
AIR 2008 SC 1117

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and the following inscription, immediately below the number of the suit in the title of
the suit namely-(U/o XXXVII of the code of Civil procedure , 1908)
[3.3] SUMMARY PROCEDURE
Court and Classes of Suits to which the Order is to apply-
1. This order shall apply to the following courts, namely:
a) High courts, city civil Courts and courts of small cause.
b) Other courts: provided that in respect of the court s referred to in clause (b), the high
Court may, by notification in the official gazette, restrict the operation of this order
only to such categories suits as it deems proper, and may also, from time to time, as
the circumstances, of the case may require, by subsequent notification on the official
gazette, further restrict, enlarge or vary, the categories of suits to be brought under
the operation of this order as it deems proper.
2. Subject to the provisions of Sub Rules (1), the order applies to the following classes of
suits namely-
a) suits upon will 0f exchange, Hundies and promissory notes:
b) suits in which the plaintiff seeks only to recover a debt or liquidated demand in
money payable by the defendant, with or without interest, arising:-
i. On a written contract, or
ii. On an enactment, where the sum sought to be recovered is a fixed sum of money or
in the nature of the debt other then a penalty: or
iii. On a guarantee, where the claim against the principal is in respect of a debt or
liquidated demand only.
If written Contract or Agreement is not there then a simple civil recovery suit will be file on
the basis of facts and circumstances of the case7.

7
https://vakeelkanumber.com/legalproceeding.php

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CHAPTER 4: OTHER APPROACHES FOR RECOVERY OF MONEY


[4.1] SECTION 26 READ WITH ORDER 7 RULE 1 AND 2:

Section 26 of the code talks about Institution of the suits-

Section 26: institution if suits


1) Every suit shall be instituted by the presentation of a plaint or in such other manner as
may be prescribed.
2) In every plaint, facts shall be proved by affidavit.]
Recovery of money suits are governed under Order VII of CPC. In the absence of written
agreement, a suit can be filed on the basis of a oral agreement.
Order 7 rule 1 and 2 when read together with section 26 provide a remedy for recovery of
money or debt.

Order 7 rule 1: Particulars to be contained in plaint.- The plaint shall contain the following
particulars:

a) the name of the court in which the Suit is brought;


b) the name, description and place of residence of the plaintiff;
c) the name, description and place of residence of the defendant, so far as they
can be ascertained;
d) where the plaintiff or the defendant is a minor or a person of unsound mind, a
statement to that affect;
e) the facts constituting the cause of action and when it arose;
f) the facts showing that the court has jurisdiction;
g) the relief which the plaintiff claims;
h) where the plaintiff has allowed a set off or relinquished a portion of his claim
the amount so allowed or relinquished; and
i) a statement of the value of the subject matter of the suit for the purposes of
jurisdiction and of court fees, so far as the case admits.

Order 7 rule 2: In money suits.- Where the plaintiff seeks the recovery of money, the plaint
shall state the precise amount claimed:

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But where the plaintiff sues for mesne profits, or for an amount which will be found due to
him on taking unsettled accounts between him and the defendant, or for movables in the.
possession of the defendant, or for debts of which the value he cannot, after the exercise of
reasonable diligence, estimate, the plaint shall state approximately the amount or value sued
for.

[4.2] REMEDY UNDER NEGOTIABLE INSTRUMENTS ACT

Action under Section 138 Negotiable Instruments Act (N.I. Act): Give notice under within
30 days of receipt of information of dishonour from the bank. In case of non- payment by the
drawer within the notice period of 15 days, then the holder must institute a complaint case for
prosecuting drawer within 30 days of expiry of notice period.

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SUIT FOR RECOVERY OF MONEY UNDER ORDER XXXVII


IN THE HIGH COURT OF DELHI AT DELHI

Civil Suit No.: _______of 2017

(Under Order XXXVII of the Code of Civil Procedure 1908)

Date of Institution : _______


Satya Prakash Jha, S/o Prakash Kumar Jha, R/o 501-A, Golccha Apartments, Malviya Nagar,
Delhi.

........................Plaintiff

Versus

Devank Kumar Sing, S/o Jai Kumar Singh, R/o 461-ID Kusum Vihar, Moolchand, Delhi

....................Defendant

Suit for the recovery of Rs. 1,40,500 along with cost and interest @ 24% pa

Plaint under Order XXXVII of the Code of Civil Procedure 1908 as mentioned in the suit

Respectfully Showith :

1. That the present suit is being filed under the specific provisions under Order XXXVII of
the Code of Civil Procedure, 1908.

2. That no relief, which does not fall within the ambit of this rule, has been claimed in the
plaint.

3. That the plaintiff is a Cement Trader. The defendant purchased __cement and sand etc.
from the plaintiff.

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4. That the defendant issued the Cheque bearing No.6657899 dated 25.01.2016 for the sum of
Rs. 1,40,500 drawn at bank Bank of Baroda, to the plaintiff towards the consideration of the
above articles purchased from the plaintiff.

5. That the plaintiff presented the cheque through his own bankers, ie; Bank of Baroda, but
the same was returned unpaid, on 03.02.2016 with the endorsement of insufficiency of funds
in the account of the defendant as per the remarks of the banker of the defendant.

6. That other necessary particulars are as under for the convenience of this Hon'ble court:-

(a) Date of cheque : 25.01.2016

[b] Date of presentation : 30.01.2016 of Cheque before the Bank (within 6 months from
25.01.2016)

[c] Date of dishonour of Cheque : 02.02.2016

[d] Date of receipt of Memo of : 03.02.2016 of dishonour of cheque

[e] Date of sending of Notice : 07.02.2016(within 30 days from 02.02.2016)

[f] Date of service of Notice : 05.02.2016

[g] Date when cause of action : 20.02.2016 arose (15 days after service on 05.02.2016)

7.That the defendant has apparently issued the cheque without caring to ensure adequate
funds and knowing fully well with the ulterior motive to cheat the plaintiff.

8. The memo to that effect was duly communicated to the plaintiff by its banker on
03.03.2016.

9. That the said cheque drawn by the defendant on an account maintained by him with the

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above banker for payment of the amount of money to the plaintiff from out of that account
was issued for the discharge of the above said debt/liability.

10. The said cheque has been returned by the bank unpaid, because of the amount of money
standing to the credit of account of the defendant is insufficient to honour the cheque or that
it exceeds amount arranged to be paid from that account by an agreement made with that
bank.

11. The cheque has been presented to the bank within a period of six months from the date on
which it is drawn ie; on 30.01.2016.

12. That the plaintiff in due course of the cheque, has made a demand for the payment of the
said amount of money by giving a notice in writing to the defendant within statutory period
of thirty days of the receipt of information by him from the bank regarding return of the
cheque as unpaid. The said notice was sent on the correct address of the defendant through a
Registered/AD letter as well as through UPC on 05.02.2016 and the said registered letter has
been received back with the endorsement "Unclaimed", as is evident from the endorsement of
post office seal on the it which legally is presumed to have been served as otherwise also the
UPC has not been received back and the same has been duly delivered to the defendant.

13. That the defendant has failed to make the payment of the amount of money to the plaintiff
in due course of the cheque within fifteen days of the receipt of the said notice.

14. That it is pertinent to mention here that the debt/liability, for which the cheque was issued
by the defendant to the plaintiff is a legally enforceable debt/liability.

15. The cause of action accrued to the plaintiff on 02.02.2016, when the cheque was
dishonoured and thereafter on 07.02.106 when the legal notice was sent to the defendant
through registered letter and UPC.

16. That the plaintiff is permanently residing within the jurisdiction of this Hon'ble court and
all the correspondence from the defendants were received at his home address and the
office/residence of the defendant is located in the territory of this Hon'ble Court, hence this

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Hon'ble Court has each and every jurisdiction to try and entertain this suit.

17. That the value of the suit for the purposes of jurisdiction has been fixed for Rs. 1,80,000/-
and for the purposes of recovery and correct and authorized court fee stamp of Rs. 100 has
been affixed on the plaint.

18. The plaintiff will rely on documents, a list whereof is annexed hereto.

PRAYER

It is, therefore, most respectfully prayed that a decree for recovery to the effect that plaintiff
is entitled to recover a sum of Rs. 1,40,500/- along with interest @ 24% wef 25.01.2016 till
the date of realisation of amount along with cost of this suit, be passed in favour of plaintiff
and against the defendants. Such other reliefs as deemed fit and proper in the facts and
circumstances of the case may also be passed in favour of the plaintiff and against the
defendants in the interest of justice.

AND FOR THIS ACT OF KINDNESS, THE HUMBLE PLAINTIFF AS IN DUTY


BOUND SHALL EVER PRAY.

Satya Prakash Jha

Through, Advocate

VERIFICATION:

I, Satya Prakash Jha, S/o Prakash Kumar Jha, R/o 501-A, Golccha Apartments, Malviya
Nagar, Delhi, do hereby verify that the contents of the above plaint from paras 1 to __ are
true and correct to the best of my knowledge and belief, and no part of it is false and nothing
material has been concealed therein.

Verified at Delhi on this day of October 19 2016

Plaintiff

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CONCLUSION
In the business there are lot of the problems for the Startups while they just start the new
business and their new clients are not paid the amount for the pending invoices. Even for the
customer side there are lot of the companies which are not providing the proper services after
the payment. There are various laws and regulations that assist you in recovering money from
the debtor.
Even if your some friends take the loan from you and not repaid on time then learn how to
recover money from a friend or clients or customers or any other person in India.
Because Whenever money is lent it is done so with the expectation that it will be returned
back. The scariest thing about lending money to your loved ones and outside the workplace
people is the contingency of getting back that money. Pending dues becoming mixed up in
dark holes, the basic man can barely gloat such assets. However , in the event that you are
prepared to fight it out, there are different procurements in the law to bail you out.

Before legal action is taken against a debtor, the claim should be brought to his or her notice
to make sure that the debtor is aware of the fact that the debt has not been paid back. A letter
should be sent to the debtor containing important details and specifics. This should include
information concerning the debt, for instance, how the debt was incurred, the original amount
of the debt, when the last payment was made, and the current amount that is due to be paid
back. The letter should also mention information regarding the payment arrangement,
providing the debtor with a phone number or an address in order to get back to the creditor.
Most importantly, a due date should be provided to the debtor mentioning by which date he
or she must make payment arrangements in totality. The idea is to choose a reasonable date
and allow the debtor some time after he or she reads the letter to repay the debt. Also time
must be given for the debtor to respond. At this stage, it is better to motivate the debtor rather
than throw him/her into panic.

If this too fails, either by way of the debtor not responding or refusing to make the payments,
it may be necessary to institute legal proceedings against the debtor.

Draft a suit for recovery of money Page 23


DRAFTING, PLEADING AND CONVEYANCING

BIBLIOGRAPHY AND WEBLIOGRAPHY


WBSITES:

www.lawyersclubindia.com
www.manupatra.in
http://pib.nic.in/newsite/PrintRelease.aspx?relid=122425
http://bombayhighcourt.nic.in/libweb/ordinc/2015/2015.06
http://lawfarm.in
https://vakeelkanumber.com
www.legalservicesindia.com
www.indiadebtrecovery.com

BOOKS:

The law of Drafting, Pleading and Conveyancing, R.D. Shrivastava

Text Book of Drafting, Pleadings and Conveyancing, Dr. N. Maheshwara Swamy

BARE ACT:

Civil Procedure Code, 1908

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