Every one of us must have been in a situation when a sum of money lent to a person or a company does not repay it. This can happen due to various reasons like financial instability, and unable to meet the demand of interest, and sometimes it can also happen intentionally. In such cases, recovery of the amount can be dreadful for the lender and one can get a legal notice for recovery of money from the bank.
To cope with this problem, our constitution gives us the full right to file a court case against the borrower if he/she is not repaying the loan actively. Or they are not meeting the terms and conditions of the loan that was decided prior. But what is this law? How can a person use it? And what would be the required documents and proof to do so? Let us discuss the same in further sections.
What is the Legal Notice for Recovery?
Legal notice for recovery of money acts as a warning for the borrowers who are not meeting the terms of repayment. This is a legal notice or warning to the person, if he/she does not respond to the notice or continues the malpractices then a case can be filed against him.
And the best part of the law is that it applies to not only formal borrowers but also to informal ones. For example, friends, relatives, colleagues, etc. Even, legal notice can be filed against the bank, tenants, company and any other huge organisation.
These notices are legally strong and hold the power to initiate a court case against the borrower. Although, it is rarely observed that a party has ignored a legal notice. Most of the time, such cases are solved with the filing of the Legal Notice against the party. Therefore, hardly any cases are further continued to the court.
Legal notices can be used to recover due debts, bounced cheques, dues receivable or any other form of money that is not being repaid by the borrower. This is one of the most common tools that banks used to collect payments from faulty loan borrowers.
Things to Consider While Drafting Legal Notice for Money Recovery?
Legal notice, being a formal process, requires high accuracy. Every prominent information about the debt bounced cheques or any other corresponding scenario should be mentioned in the draft. Here is the complete list of the key point that you should keep at the back of your head.
- The letterhead of a registered advocate should be used to draft the legal notice. Also, make sure to mention it clearly and properly.
- Some information about the advocate is also required by validation and authentication. Thus, the address and contact details of the concerned person should be mentioned.
- Apart from that, other prominent data has to be included. Like, such as the name, address and contact details of the borrower against whom the notice is being filed.
- And obviously, the name and contact details along with the address of the person who is filling the notice should be there.
- And most importantly, mention how the borrower is exploiting the terms and conditions. These terms can be the interest rate, Collateral, mode of repayment, etc.
- After doing so, also include what exactly you want from the opposite party. You may also specify the desired method to fix the case before getting it filled in the court.
Documents Required to File a Legal Recovery Notice
Claiming a sum of money from another person to get a legal notice for recovery of money from the bank while also complaining about the unjust nature of the opposite party may seem a tall claim. Thus, it is compulsory to attach all the important documents and proof to make your Legal Notice look valid and formal. You would require the given documents while drafting the Legal notice for recovery of money.
- An Affidavit of proof of money lent by you should be included in the notice
- If you are seeking the payment, which can be your deducted salary as well, from your employer then the employment agreement can be used as proof. This will validate and prove that the person is legally responsible to pay you.
- Moreover, if you do not have any of the above then you can use any valid proof of money that is owed to you.
Procedure to be Followed
Although there is no legally specified procedure that one has to follow. But a very basic and fundamental method is followed by the advocate across the nation. This includes drafting the notice with all the necessary documents attached to it. After the document is ready and checked it should be signed by the advocate. It would be a declaration that the notice is legally valid and meaningful from his/her perspective.
After doing so, the draft would be finally reviewed by the lender. Once everything seems fine, the notice would be delivered to the opposite party. If they ignore the notice or no action would be taken from their side then the lender will hold the right to file a case against him. The notice should also contain a deadline for the borrower to clear his/her all dues. Otherwise, a full-fledged course will be filed and the opposite party will have to appear on dates.
Role of Advocate
An advocate is a professional who holds expertise in law and jurisdiction. It is highly advisable to hire them to guide during the whole process. They can help by formulating the document and can also suggest you more allegations to file against the borrower. Apart from that, they could arrange the documents required. And of course, their letterhead would be needed with a signature in order to make the notice legal and valid. If in case, you failed to recover the payment by sending the notice, the lawyer can handle the further case as well. On the other hand, the knowledge and support are enduring benefits of the lawyer.
Conclusion
In a nutshell, the procedure and the proof are attached to the draft matter. As they are the core of legal notice that validates its genuineness. Also, to get a legal notice for recovery of money from a bank one can file a court case after assigning them a notice period.
For such procedures, we have seen, that the requirement of an advocate is always there. But what if you do not have any good advocates in your region? Vakilsearch is one of India’s largest platforms that cater for law and tax-related services to the people.
Our services are reasonable that come with 24×7 customer support. More information can be accessed on our website regarding our multiple legal services and price. So, check out our website and mobile application to avail yourself of a personal lawyer now.
FAQs
How do I get a legal notice for the recovery of money online?
Online legal notice services can be availed through legal platforms or lawyers specialising in debt recovery.
What is the legal action to be taken for recovery of money?
Depending on the amount and circumstances, legal actions may include filing a civil suit, initiating arbitration, or resorting to debt recovery tribunals.
What is the limitation of legal notice for recovery of money?
The limitation period for filing a suit after issuing a legal notice is generally three years, but specifics may vary.
What happens when banks issue a legal notice?
Banks issue legal notices to recover outstanding dues. Ignoring such notices may lead to legal consequences, including asset seizure.
How seriously do you need to take a legal notice?
Taking a legal notice seriously is crucial, as it initiates a legal process. Ignoring it can result in adverse legal actions.
What is the time limit for a legal notice?
The time limit to respond to a legal notice is typically 15 to 30 days, and a timely and appropriate response is advisable.
Read also;
- How to Send a Legal Notice to Tenant to Vacate Premises?
- How to Send a Legal Notice to Employer for Non-Payment of Salary?
