Collecting bad debts and outstanding receivables, or dealing with bounced cheques can be very hectic. Tax Seva Kendra has a team of experienced debt collection attorneys and financial professionals who can help you recover your debt and can provide tailor-made solutions to recover what is rightfully yours.
The first and foremost step in the process of recovery of debt with be to send a legal notice to the defaulter.
If you still don’t receive the payment, you can further go for one of these actions; Summary Suits, Negotiable Instruments Act, Criminal case or Insolvency and Bankruptcy Code.
Our experienced lawyers will guide you through the process to help you decide the best solution.
The actions that are generally taken to recover the debt are:
Legal Notice: Sending a legal notice is the initial step you can take to recover your money. Sending a legal notice means informing him legally that he is bound to pay certain sum of money with interests within the mentioned time failing which the legal consequences may follow. A standard window for complying to a legal notice is usually 30 days.
F.I.R. or First Information Report is a criminal complaint filed against the defaulting party. You can lodge an F.I.R. if you wish to initiate criminal proceedings against the person from whom you need to recover the money.
Money or Summary Suit:
A money suit is an ordinary civil suit before a Court of competent jurisdiction. Here, the aggrieved pleads for obtaining the monetary compensation against the loss caused to him. Money suits are generally treated as a summary suit under Order 37 of the Civil Procedure Code so as to dispose off the matter within 3-4 months.
Insolvency Petition:
Insolvency proceedings are taken into consideration by the official Liquidator when all other remedies fail. An aggrieved has to file a petition under Insolvency and Bankruptcy Code. After the matter is adjudicated upon, an official liquidator is appointed by the said court who manages the assets of the insolvent person and liquidates them so that all debts and money due from the insolvent can be paid off.
Criminal Suit:
A criminal suit can be filed under S/406 and Section 420 of Indian Penal Code for default in debt payments. A criminal suit can be filed if the amount to be recovered is proportionately high and despite several warnings, the person refuses to pay the amount. A criminal suit is usually the follow-up to an F.I.R. investigation.
