You lent a friend money, a client has not paid your invoice, or a business partner kept your share. Messages have gone unanswered for months. The usual path is a legal notice for recovery of money first, then a suit in the civil court if the notice does not work.
Two things decide whether you can recover. The first is time: in most money claims you have three years to file the suit. The second is paper: what you can show in writing about the debt. This article walks through both, and the court routes available in Bengaluru.
Check the limitation period first
The Limitation Act, 1963 sets a deadline for each kind of money claim. Miss it and the court must dismiss the suit, however strong your case.
| Claim | Period | Counted from |
|---|---|---|
| Money lent (Article 19) | 3 years | When the loan was made |
| Money lent payable on demand (Article 21) | 3 years | When the loan was made |
| Price of goods sold, no credit period (Article 14) | 3 years | Date of delivery |
| Price of goods sold, with a credit period (Article 15) | 3 years | When the credit period ends |
| Price of work done, no date fixed for payment (Article 18) | 3 years | When the work was done |
Note that for an ordinary loan, the clock usually starts when you gave the money, not when you first asked for it back.
How the period can restart
- Written acknowledgement (Section 18). If, before the three years run out, the debtor signs something in writing that admits the debt, a fresh three years starts from that date. An email, letter or signed message admitting the amount can count.
- Part payment (Section 19). If the debtor pays part of the debt before the period runs out, a fresh period starts from the payment, provided the payment is acknowledged in the payer’s handwriting or in a writing signed by them.
This is why old messages matter. A message from last year saying “I will return your 2 lakh by Diwali” may keep a claim alive that would otherwise have expired.
Step 1: Send a legal notice
A notice is not required by law for most money claims, but it is the right first step. It states the debt, demands payment within a fixed time (often 15 days), and says you will sue if they do not pay. Many debtors pay, or offer instalments, once the notice arrives.
The notice also matters later. If you claim interest, the court may count it from the date of demand, and a clear written demand helps. Our guide to legal notices in Bengaluru covers the format and how to send one.
If a cheque was involved
If the debtor gave you a cheque and it bounced, you may have a criminal remedy under Section 138 of the Negotiable Instruments Act as well. It has strict deadlines: a notice within 30 days of the return memo, and a complaint within one month after the 15-day payment period ends. You can pursue a Section 138 case and a civil suit for the same debt together. See cheque bounce cases in Karnataka.
Step 2: Choose the right kind of suit
Ordinary recovery suit
A regular money suit is filed in the civil court with jurisdiction, depending on the amount and where the defendant lives or the transaction took place. In Bengaluru city, that usually means the City Civil Court on K.G. Road. The defendant files a written statement, evidence is led, and the court decides. This takes time, often a few years.
Summary suit under Order 37
If your claim is for a fixed sum based on a promissory note, bill of exchange, or a written contract, you may be able to file a summary suit under Order 37 of the Code of Civil Procedure. Order 37 applies in High Courts, City Civil Courts, Courts of Small Causes and other courts the High Court notifies.
The difference is that the defendant cannot defend as of right. They must enter appearance within 10 days of service of the summons. You then serve a “summons for judgment”, and they have 10 days to ask for leave to defend, showing a real defence. If they do not, or the defence is a sham, the court can pass a decree quickly. If the defence looks genuine, the court grants leave and the case runs like an ordinary suit, sometimes with a condition that they deposit the admitted amount.
Order 37 suits are faster when the paperwork is clean: a signed loan agreement, a promissory note, an invoice accepted in writing.
Commercial disputes: Section 12A mediation
If the money is owed under a commercial dispute (between traders, businesses, suppliers, service providers, and similar) and the claim is Rs 3 lakh or more, it falls under the Commercial Courts Act, 2015. Bengaluru has designated commercial courts for these cases.
Before filing, Section 12A requires you to try pre-institution mediation through the Legal Services Authority, unless you need urgent interim relief. The mediation is to be completed within three months, extendable by two more with both sides’ consent. In Patil Automation v. Rakheja Engineers (2022), the Supreme Court held this step mandatory: a commercial suit filed without it is liable to be rejected.
Mediation sometimes ends in a settlement that is enforceable. If the other side does not turn up, you get a report and can file the suit.
A loan between friends or relatives is not a commercial dispute and goes to the ordinary civil court.
Court fee in Karnataka
Court fee for a money suit is paid under the Karnataka Court-fees and Suits Valuation Act, 1958, and is calculated on the amount you claim. It is an ad valorem fee, so a larger claim means a higher fee. We work out the exact figure for your claim before filing, so you can decide whether to claim interest as well and how much.
After the decree: getting paid
Winning the suit gives you a decree. If the debtor still does not pay, you file an execution petition. The court can then attach their bank accounts, salary or property. Execution is a separate stage and can take time, so it helps to know early what assets the debtor has.
If you are not sure whether your claim is in time, or which court it belongs in, our civil lawyer page explains how we look at these cases.
Questions people ask
What is the time limit to recover money lent in India?
Three years from the date the loan was made, under Article 19 of the Limitation Act. A written acknowledgement or part payment before the period ends restarts the three years.
Is a legal notice compulsory before a money recovery suit?
Not for most private money claims. It is still the usual first step, because it often gets the money paid and shows the court you made a clear demand.
Can I recover money lent without a written agreement?
Yes, if you can prove the loan by other means, such as bank transfers, messages admitting the debt, or witnesses. A cash loan with no record is much harder to prove.
How long does a money recovery suit take in Bengaluru?
An ordinary suit often takes a few years. A summary suit under Order 37 can be faster if the defendant does not get leave to defend. Commercial cases have stricter timelines under the Commercial Courts Act.
What is the court fee for a recovery suit in Karnataka?
It is an ad valorem fee under the Karnataka Court-fees and Suits Valuation Act, 1958, calculated on the amount claimed. Your advocate will give you the exact figure before filing.
Talk to us about your matter
Call or WhatsApp to fix a time. Bring your papers to the office in Rajarajeshwari Nagar.
This article is general information about the law as it stood when it was written. Your facts change the answer. Speak to an advocate before you act on it.