Legal Notice For Recovery Of Money Format
- Lead india
- Sep 25, 2023
- 3 min read
One may face a situation sometimes in his life where someone owes them money and is not returning it, in such matters the legal course of action could be of assistance. By sending a legal notice for the recovery of money, a formal warning is issued to the person who owes money so as to repay the due amount or else a legal process would be initiated against the receiver of the notice.
Legal notice for the recovery of money is a formal intimation between the two parties before a legal action is initiated to get their due payment. A legal notice can be issued by anyone from a dealer to an employee, tenant, friend, company, bank, etc.
Procedure in India for recovery of money-
As has already been discussed earlier, one of the most important steps for recovery of money in India is to send a legal notice. A legal notice is mostly issued by an advocate on behalf of his/her client for the purpose of settlement as well as to communicate the intention of his/her client to initiate legal proceedings. A legal notice should contain the following-
Name, address of the sender of the notice.
Details regarding the cause of action.
Monetary relief claimed by the sender of the notice, if any.
The legal basis based on which the relief is claimed.
Steps to draft a Legal Notice-
A legal notice must be drafted on the letterhead of the advocate and should be specific and proper.
It must contain addresses and contact details of the advocate.
The legal notice should also contain the date on which it was issued and the name, address as well as the contact details of the person to whom the legal notice is issued is also required to be stated.
If a legal notice for recovery of money is issued from the client’s end, the name and details of the client are required to be mentioned as well.
It should be mentioned in the notice as to how the right of the sender has been infringed due to the act and omission by the receiver of the notice and what compensation should be paid. A specific period of time has to be mentioned in the notice, within which the respective party would have to send the reply to the notice.
The legal notice is required to be signed by the advocate as well.
Some common situations where a legal notice for recovery of money could be issued-
Tenant- in situations where the tenant does not pay the rent to the landowner, resulting in a huge amount of money being accumulated, which the landowner is entitled to pay. In such a situation, the landowner could even send a legal notice for the eviction of the tenant or for the recovery of money.
Employee-if an employee absconds with the money, a domestic enquiry would be initiated, a show-cause notice would be sent to the residential address of the employee.
Employer/Company- an employer when deprives his/her employees of their legitimate salary, various procedures are available in such situations to seek recovery of money, including issuing a legal notice.
Legal Notice for money recovery under loan- a debt recovery tribunal is provided in every state to resolve debt-related issues, the first step would begin by sending a legal notice for debt recovery on behalf of the banks or financial institutions.
Dealer- during business transactions, a seller would generally sell his or her products through distributors and would keep security deposits from the dealers and distributors in the form of post-dated cheques.
Recovering money from a friend- In order to avoid any unpleasant issue in the future, you should give loan to friends or family through either promissory notes or loan agreements.
Conclusion-legal notice for the recovery of money is a formal intimation between two people warning the other of a possible legal action which could be initiated to get their due payment.
Before sending a legal notice for recovery of money, it is advised that you talk to a lawyer, who could help you understand the proper legal procedure involved as well as legal language required for such an act.
Lead India provides you with an experienced team of advocates who have been successfully dealing with cases both civil and criminal in nature and can offer you appropriate advice and assistance as required. Hence, if you wish to talk to a lawyer online or seek free legal advice, you may contact us.
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