How to file a case for recovery of money based on a promissory note or contact?

Overview: Many times parties after signing any contract of through a work order enter into a contract. One party has to do some work and the other party has to pay the requisite amount to the party who has done the work. However after getting the work done the payment gets delayed on one pretext or the other. The person who has to receive the money keeps pleading but no payment is made. Even if some part is paid the remaining balance amount is nowhere close to be paid.

Purpose: The purpose of this article is to provide an overview about instituting a summary suit. This article applies to all the suits which arise upon non payment in respect of bills of exchange, hundies, and promissory notes.

These are also the suits wherein the plaintiff seeks to recover a debt, which is payable to the plaintiff by the defendant and arises either on a written contract or on an enactment where the sum sought to be recovered is fixed or on a guarantee where the claim against the principal is in respect of a debt is given.

Areas of Application of Law: Code of civil procedure 1908

Process:

The first thing to do is to approach the lawyer and discuss the matter with her. The lawyer will decide according to facts of your case if the suit can be instituted by presenting a plaint under the head of a summary suit for recovery in any Court. The plaint drafted shall have to contain the requirement which are mentioned in order 37 Rule 2(1) of CPC. Once the case is filed thaen a notice along with plaint and annexure/ documents is sent to the defendant who has t then come and appear before the court and file his leave to defend. In case where the defendant fails to enter appearance within the time frame prescribed in law which is within 10 days from the service of the summons on him then the case of the plaintiff is deemed to be decided against the defendant and a decree is directly passed in favour of the plaintiff.

 

Within the 10 days since receipt of summons the defendant has to disclose by way of an affidavit, such facts which he believes to be sufficient to entitle him of the right to defend himself. Where the court believes that any triable issue is raised then a full trail takes place else a summary trial happens and the defendant is not given any chance to defend himself. Decree is passed in the favour of the plaintiff.

 

Documents required to be submitted in the court if any: Agreement, invoices, promissory notes, bank statement showing some payment was made, correspondence between the parties, any document that establishes the liability towards the payment being due, any cheque that would have been issued to the plaintiff, any acknowledgement of debt, legal notice sent to the other party seeking recovery of money, a board resolution when a company is filing the case (too authorize the signatory to file the case) any other document to support your need as advised by your lawyer.

 

Punishment/Expected Relief: Recovery of money

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