Debt recovery from individuals can be a herculean task at times, keeping in mind the nature of day-to-day transactions, lending on friendly basis, oral contracts, lack of documentation, force, fraud etc. However, if you want to recover a debt from an individual it is advisable to hire the best debt recovery lawyers in India to guide you. The measures that are generally taken are:
Legal Notice: Sending a legal notice is the first step you can take to recover your money, thereby informing him legally that he is bound to pay certain sum of money with interests in the stipulated time failing which the legal consequences may flow. A standard window for complying to a legal notice is 30 days.
F.I.R: F.I.R. or First Information Report is a criminal complaint against the breaching 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 Suit: A money suit is an ordinary civil suit before a Court of competent jurisdiction. Here, the aggrieved prays 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 that the matter is disposed off within 3-4 months.
Insolvency Petition: Insolvency proceedings are initiated 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 monies 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 . 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.