Legal notices

Legal notice for recovery of money

Lent money to a friend, delivered work that was never paid for, or left a deposit that was not returned? A recovery notice is a formal demand for that money. No law requires one before a money suit, but it is the usual first step and often settles the matter.

Law checked on 9 November 2026.

Time limit to sue: Usually 3 years (Limitation Act, 1963)
Does the notice extend it?: No
Business claim of Rs 3 lakh+: Mediation first (Commercial Courts Act, s.12A)
MSME supplier: Interest at 3 times the bank rate (MSMED Act, s.16)

What the notice should say

Who lent or supplied, who owes, and how they are connected (a loan, an invoice, a deposit).
The amount, how it is made up, and the dates: when it was given or fell due, and any part payments.
The proof you hold: the agreement, the bank transfer, the invoice, the messages in which it was admitted.
Interest, only if it was agreed in writing or a law gives it (see MSME below).
A clear deadline, commonly 15 or 30 days, and what you will do if it passes.

The clock: three years, and what resets it

Most money claims must be filed in court within three years under the Limitation Act, 1963. The three years run from a date that depends on the claim: for money lent, generally from when the loan was made; for goods or work, from when payment fell due.

Sending a notice does not stop or restart that clock. What does: a written acknowledgement of the debt, signed by the person who owes it, made before the three years end (Section 18), or a part payment made in time and acknowledged in their own writing (Section 19). Each starts a fresh period. If the other side answers your notice by admitting the amount, keep that reply.

Money recovery suit: how to recover unpaid dues

If you run a business

For a commercial dispute of Rs 3 lakh or more, the Commercial Courts Act, 2015 requires pre-institution mediation before the suit, unless you need urgent interim relief (Section 12A). The Supreme Court held this mandatory in Patil Automation v Rakheja Engineers (2022).

If you are a micro or small enterprise registered under the MSMED Act, 2006, the buyer must pay within the agreed time, which cannot be more than 45 days from acceptance, or within 15 days if nothing was agreed (Section 15). Late payment carries compound interest at three times the bank rate notified by the Reserve Bank, with monthly rests, whatever the contract says (Section 16). You can refer the dispute to the State Micro and Small Enterprises Facilitation Council (Section 18); new claims are filed on the MSME Online Dispute Resolution portal.

If you were given a cheque

A bounced cheque is a separate, faster route: a criminal complaint under Section 138 of the Negotiable Instruments Act, which needs its own notice within 30 days of the bank's return memo.

Cheque bounce legal notice: how to send one

After the notice

If they pay or agree a schedule, put the settlement in writing and get it signed.
If the debt rests on a written contract, a bill of exchange, a cheque or a promissory note, a summary suit under Order XXXVII of the Code of Civil Procedure can be quicker than an ordinary suit.
Otherwise, an ordinary suit for recovery in the court that has jurisdiction over the amount and the place.

Summary suit for recovery

Other legal notices

A cheque bouncedThe Section 138 notice and its 30-day limit You got a cheque bounce noticeYour 15 days, and what to check Ending a tenancySection 106 notice and State rent laws Builder delayed your flatRERA refund or interest, or the consumer commission DivorceWhether a notice is needed, and the court notice Suing the GovernmentSection 80 CPC notice and the two-month wait DefamationFalse statements that harm your reputation Unpaid salaryWages, final settlement and where to complain A consumer complaintDefective goods, poor service, refunds Sending a notice onlineWhat works, and the proof to keep All about legal noticesWhen one is compulsory, sending, replying

Talk to an advocate about your notice Tell us what the notice is about, or what you want to claim. Sending an enquiry is free. It goes to advocates who handle this kind of matter, and your number goes only to those who open it.

Questions people ask

Can I send a recovery notice for money lent without any agreement?

Yes. A bank transfer, a receipt or messages in which the other person admits the loan can all be evidence. Electronic records such as messages may need a certificate under Section 63 of the Bharatiya Sakshya Adhiniyam, 2023 when they are used in court.

Can I claim interest in the notice?

Claim the interest your agreement or invoice provides. If none was agreed, a court can still award interest when it decides the case, and for registered micro and small enterprises the MSMED Act fixes the rate.

Does a legal notice stop the limitation period?

No. Only a written, signed acknowledgement of the debt or an acknowledged part payment, made before the period ends, starts a fresh period (Sections 18 and 19, Limitation Act, 1963).

What if the person does not reply?

You can go to court. A missing reply is not an admission, but your notice and its proof of delivery become part of your case.

Sources

Limitation Act, 1963 (India Code)
Micro, Small and Medium Enterprises Development Act, 2006, Sections 15 to 18
Commercial Courts Act, 2015 (India Code)

General information on Indian law, not legal advice for your situation. Time limits and procedure can turn on facts and on State law; an advocate can tell you how they apply to you.