Debt Recovery
Recovery of commercial dues through summary suits, cheque dishonour complaints, DRT proceedings and insolvency.
Debt recovery is the enforcement of money claims through the courts and tribunals: summary suits under Order XXXVII CPC, complaints for cheque dishonour under Section 138 of the Negotiable Instruments Act, proceedings before the Debt Recovery Tribunal, and demand notices under the Insolvency and Bankruptcy Code.
Unpaid invoices and dishonoured cheques are the most common problems businesses bring to the firm. We advise on the fastest available route for the size and nature of the debt, and move quickly, because limitation and the notice periods under the NI Act and the IBC are unforgiving.
The firm acts for creditors and for borrowers, including in SARFAESI and DRT proceedings, and in MSME delayed-payment references. Abdullah Akhtar's background in banking operations informs the practical side of this work.
What we handle
- Cheque dishonour complaints and defence (Section 138, NI Act)
- Summary suits for recovery (Order XXXVII, CPC)
- Debt Recovery Tribunal applications and SARFAESI proceedings
- MSME Facilitation Council references for delayed payments
- Demand notices and applications under Sections 7 and 9, IBC
- Recovery from guarantors and enforcement of security
Frequently asked questions
What is the procedure for a cheque bounce case in India?
Within 30 days of receiving the bank's dishonour memo, send a written demand notice to the drawer. If payment is not made within 15 days of receipt of the notice, file a complaint before the Magistrate within one month of the end of that 15-day period. Missing either deadline is usually fatal to the complaint.
Which forum should I use to recover a business debt?
It depends on the amount and the documents. Debts above 1 crore owed by a company can support an IBC demand notice; debts backed by a cheque support a Section 138 complaint; written contracts and invoices support a summary suit; MSME suppliers can use the Facilitation Council. Often two routes are pursued together.
How long do I have to sue for an unpaid invoice?
Three years from when the amount became due, under the Limitation Act, 1963. A written acknowledgment of the debt or a part payment before expiry restarts the period.
Who handles this
Related insights
- Limitation for Debt Recovery in India: The Three-Year Rule and How Acknowledgments Extend ItThe most common reason a good debt becomes unrecoverable is that nobody watched the calendar.29 May 2025
- MSME Delayed Payment Recovery through the Facilitation Council: A Practical GuideMicro and small enterprises have a statutory fast track for unpaid invoices: interest at three times the bank rate and a reference to the Facilitation Council that can end in an arbitral award.17 April 2025
- When a Bank Sues You in the Debt Recovery Tribunal: A Borrower's and Guarantor's GuideBanks recover loans of 20 lakh rupees or more through an original application in the Debt Recovery Tribunal rather than the civil court.03 April 2025
- Received a SARFAESI Notice under Section 13(2)? The Borrower's OptionsA notice under Section 13(2) of the SARFAESI Act starts a 60-day clock after which the bank can take possession of the mortgaged property without going to court.20 March 2025
- Summary Suit under Order XXXVII CPC: The Fast Route to a Money DecreeA summary suit reverses the normal burden: the defendant must obtain the court's leave to defend, and if it cannot show a real defence, judgment follows without trial.30 January 2025
- Cheque Bounce Case in India: Step-by-Step Procedure under Section 138 for the PayeeA cheque bounce complaint is the fastest criminal remedy for an unpaid debt, but it lives and dies by three deadlines.07 January 2025
The information on this page is general and does not constitute legal advice. Limitation periods and procedures depend on the facts of each matter; please take advice before acting.