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Original Draft Of Legal Notice For Recovery Of Money

  • Writer: Lead India
    Lead India
  • Aug 11, 2023
  • 3 min read

This is the start-up and entrepreneurial period, which is unmistakably propelling the nation's rising economy in the direction of financial freedom. It is regrettable that, according to the IBM Institute for Business Value and Oxford Economics, more than 90% of venture-backed firms fail during the first five years of operation due to problems with negative cash inflow or problems being paid back. Most often, people failed to recover a sizable sum of money from creditors owing to a lack of strong legal backing and sensible legal counsel, which resulted in business closures or other financial instability.



Sending a legal notice is one of the essential measures in India for money recovery. A lawyer often issues the legal notice on behalf of his or her client in an effort to reach a settlement. A legal notification must contain the information below:

  • Name, identification, and address of the notice's sender

  • Information about the cause of the action

  • The financial assistance requested by the notice's sender

  • The main legal reasoning behind the requested relief

How to Write a Legal Notice

  • The legal notification needs to be properly and specifically written on the advocate's letterhead.

  • It should include the advocate's addresses and phone numbers.

  • The legal notice must include the recipient's name, address, and contact information, as well as the date on which it was issued.

  • The client's name and contact information should be included because the legal notification for the money recovery is coming from the client's end.

  • In the notification, it should be made clear how the other party's action or inaction violated your rights and what remedy you are seeking as a result. The opposing party must be given a clear directive with a deadline.

  • Both the advocate and the sender must sign the notification (along with the date).

When & Why Does a Money Recovery Situation Occur?

  • Tenant: Tenants may fail to pay the landowner's rent, causing a sizable sum to accrue that the landowner is owed. If a lease and licence were signed to begin the tenancy, the landowner is authorised to deliver a legal notice to reclaim unpaid rent.

  • Employee: If an employee flees with the money, a domestic investigation will be opened, and a show-cause letter will be sent to the employee's home address. If an employee doesn't react even after receiving two or three of these letters, disciplinary action will be taken against them in accordance with the organisation's standing orders or service regulations.

  • Employer/Company: Several measures, including submitting a court notice for the recovery of money for pay, are available if any employer denies his employees their rightful wages. In accordance with the Industrial Disputes Act of 1947 and the Payment of Wages Act of 1936, an employee who is subject to labour rules may sue the employer. A summary lawsuit, or order 37 of the Code of Civil Procedure, also known as a remedy for money recovery, may be filed by an employee who is an executive or member of management but is not protected by labour rules.

  • Legal notice for the purpose of recovering loan funds: Because loan defaulters in India are wrecking the economy so badly, the government has recently taken drastic steps to collect the money that has been circulating via debt. In order to reclaim the remaining debt through a new court system, the SARFAESI Act, commonly referred to as the Securitization and Reconstruction of Financial Assets and Enforcement of Securities Interest Act, was passed in 2002.

  • Dealer: In the business world, manufacturers often sell their goods through distributors and preserve the security deposits they receive in the form of post-dated checks from Dealers and Distributors. If such checks bounce because there isn't enough money, the drawee can immediately issue a legal notice for money recovery within 30 days of the day they get the return memo from the bank.

  • Money Recovered from a Friend: One should lend money to friends or family members using either of the two documents, a Promissory Note or a Loan Agreement, to avoid any bad situations in the future. You are entitled to legal assistance if you have used one of the two devices to channel the loan underwriting contract.

Lead India provides free legal advice, legal services, and online internet data. The best course of action in this situation is to talk to a lawyer and ask a legal question.


Call Us: +91–8800788535

Email: care@leadindia.law


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