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In India, money recovery through courts can be done through a money recovery suit, which is a legal process that allows individuals or entities to seek payment of outstanding dues through a civil court. The type of court to file the suit in depends on the value of the suit
RECOVERY OF MONEY THROUGH CIVIL COURTS UNDER CODE OF CIVIL PROCEDURE:
A money recovery suit is a legal process that allows individuals and entities to recover money owed through a civil court. The Civil Procedure Code (CPC) and other relevant laws govern the money recovery process.
A money recovery suit can be filed under Order IV of the CPC to recover money in various circumstances, such as: Unpaid loans, Unpaid invoices, Dishonored Cheques, Breach of contract, and Non-payment of rent.
Anyone with the right to sue can file a money recovery suit in a civil court, but the suit must meet certain jurisdictional requirements. These include:
•Territorial jurisdiction: Covered by sections 15–20 of the CPC
•Pecuniary jurisdiction: Covered by section 16 of the A.P. Civil Courts Act
•Subject matter/inherent jurisdiction: Covered by section 9 of the CPC
The process for filing a money recovery suit may include the following steps:
1. Sending a signed copy of the complaint and required documents to a lawyer
2. The lawyer filing the petition in court within three working days of the draft being approved
3. The lawyer making preliminary arguments on the client's behalf and getting the petitioner admitted
4. The debtor filing a reply to the petition
5. The court conducting a hearing to listen to arguments and determine if the debtor should be allowed to defend their case
RECOVERY OF MONEY UNDER ORDER 37 CPC:
Order XXXVII of the Code of Civil Procedure (CPC) is a legal mechanism that allows individuals to recover money quickly based on written contracts, bills of exchange, promissory notes, and other similar documents. It applies to certain courts, including High Courts, City Civil Courts, and Courts of Small Causes.
A suit for recovery of money is a civil relief that can be used to recover money from someone who is delinquent. It can be used to recover money owed for a variety of reasons, such as unpaid loans, invoices, or rent, or in the case of dishonored checks or breach of contract. Anyone who has the right to sue can file a money suit, including:
•Principals and agents
•Co-holders of a debt or actionable claim
•Partners
•Trustees and trust beneficiaries
•Religious institutions and their members
•Hindu joint families and their members
•Banking companies and financial institutions
•Civil and military officers
•Other statutory authorities
•Executors
One of the main advantages of an Order XXXVII suit is that the plaintiff can receive an immediate judgment if the defendant is unable to establish a strong defense. In contrast to a regular suit, summary proceedings can be easier for the plaintiff to establish their case and more difficult for the defendant. In a summary suit, the defendant is not entitled to defend the suit as of right and must apply for leave to defend within 10 days. The court will only grant leave to defend if the defendant's affidavit includes facts that require the plaintiff to prove consideration or other facts that the court deems relevant.
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