A money recovery suit is only as strong as the paper behind it. The court will want to see the transaction that created the debt, the amount that remained unpaid, the demand made, and proof that the demand reached the debtor. Invoices, the ledger, delivery or service proof, the acknowledgment of debt, bank statements and the goods or service records are the core. Without them, a genuine claim can still fail.
This page lists the documents a recovery suit needs, explains why courts ask for the ledger, how cause of action and limitation work, and how a decree is enforced once it is passed.
When this matters
Suppliers, contractors, professionals, landlords, lenders and small businesses all reach a point where a customer stops paying. A firm demand notice recovers the money in a large number of cases. Where it does not, the recovery suit is the route, and the claim's strength is decided by the file, not by who is more convincing in court. Building the file from the first unpaid invoice is the whole game.
Documents a money recovery suit needs
- The contract or purchase order. The document that fixes the price, the delivery or service terms, and the payment period. It also fixes the forum, the interest and the basis of the claim.
- Invoices, bills and debit notes. Every invoice raised, with the date, the amount and the description of the goods or services.
- Delivery proof. Signed delivery challans, goods receipt notes, dispatch documents, weighbridge slips, or, for services, completion certificates, time sheets or sign-offs. This is the single most contested item in a supply claim.
- The ledger statement. A chronological account of every charge and every credit, showing the running balance and the closing amount due. It shows the court at a glance how the figure in the plaint was arrived at, and it defeats any suggestion of an account settled or a payment missed.
- Bank statements. The payer's remittances and the payee's collections, showing what was received and what was not.
- The acknowledgment of debt. A written admission, a confirmation of balance, an email agreeing to pay, or a cheques given for the balance. Such an acknowledgment also restarts limitation.
- The demand notice and its postal proof. The notice before the suit, the registered post or speed post receipt, the acknowledgement and the returned envelope, if any.
- Correspondence. Emails, letters or messages in which the debtor admits the work or asks for time. Read as a whole, they often prove both the debt and the acknowledgment.
Why courts want the ledger statement
A plaint states a single figure. The ledger explains it. Where the account moved over months with part payments, credit notes and adjustments, an unexplained figure invites a defence that the account was settled or the figure padded. A clean, dated ledger, reconciled with the bank statement, meets that defence head-on. The ledger should be prepared from the books, not reconstructed for the plaint; if the accounts are maintained on a computer, a certified printout with a certificate under the Bankers' Books Evidence Act 1891, where a bank's records are used, is how it is proved.
Cause of action and limitation
The cause of action arises when the payment fell due and was not made, or when the debtor broke a promise to pay after a demand. Limitation for a money claim is generally three years under the Limitation Act 1963, running from that date. A fresh written acknowledgment of the debt, or a part payment, restarts the clock; a mere oral assurance does not. In a running account, the claim must be pleaded and proved transaction by transaction so that each invoice is tested for limitation. Suing on a debt approaching three years without an acknowledgment is a pleadings trap the debtor's counsel will exploit.
Court fee and how a decree is enforced
The court fee is the fee prescribed for the value of the claim, calculated on the amount sued for, and it varies with the claim and the forum, so the figure should be worked out from the applicable schedule before the plaint is filed. Once a decree is passed, enforcement is under Order XXI of the CPC. The decree-holder may attach and sell the judgment-debtor's movable or immovable property, attach debts owed to the debtor by third parties (a garnishee order), or seek the court's process against a judgment-debtor who has the means to pay and refuses. Execution must itself be pursued within limitation, so a decree that is not acted upon can become time-barred. A recovery suit that ends in a decree you cannot execute has recovered nothing, which is why the debtor's assets are checked before the suit is filed.
Common questions
Can I file a recovery suit without a written contract?
Yes, on the strength of the invoices, delivery proof, ledger and correspondence, but you cannot use the fast summary procedure unless the debt is on a written contract for a liquidated sum. The suit is then an ordinary money suit, and the evidence has to be tighter.
What if the debtor never acknowledged the debt in writing?
Then the three-year clock runs from when payment fell due and is not extended. Gather what you have, including emails and messages, and send a fresh demand at once so that the file is ready before limitation closes. See legal-notice-recovery for the notice that recovers many accounts without litigation.
Does a cheque for the balance help?
Yes. A cheque given towards the debt, especially if it is dishonoured, is both evidence of the debt and, in some cases, the basis of a separate cheque-bounce complaint under Section 138 of the Negotiable Instruments Act 1881. Keep the original and the return memo.
How do I choose a court?
The court with jurisdiction over the place where the defendant resides or carries on business, or where the cause of action arose, usually the place of delivery or the place of payment. A contract may fix a forum, and a well-drafted banking-recovery format clause saves disputes later. Take advice before filing to avoid a return of the plaint. A first review is free through the contact page.
FileX Advocates & Legal Consultants, 14 Hare Street, Kolkata, drafts and files these matters before the Calcutta High Court, the City Civil and Sessions courts, the magistrates, and the tribunal forums. Call +91 7439811422 or WhatsApp us for a free first consultation.