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Whether it is an unpaid invoice, a personal loan to a friend or dues from a company, the law offers several routes. Choosing the right one saves time and money.
Last reviewed: October 2026 · General information only, not legal advice.
Collect agreements, invoices, purchase orders, emails, WhatsApp messages, bank transfers, ledgers and any acknowledgement of the debt. A written acknowledgement signed by the debtor restarts the limitation period. As a rule, a suit for recovery must be filed within 3 years of the amount becoming due.
| Remedy | When to use | Law |
|---|---|---|
| Legal notice | Always the first formal step; often leads to payment | — |
| Cheque bounce case | If a cheque given for the debt was dishonoured | NI Act 138 |
| Summary suit | Written contract, bill of exchange, promissory note or fixed sum; defendant needs leave to defend | CPC Order XXXVII |
| Commercial suit | Business disputes of ₹3 lakh or more | Commercial Courts Act |
| MSME Facilitation Council | Supplier registered as a micro or small enterprise (Udyam) | MSMED Act 18 |
| Arbitration | If the contract has an arbitration clause | Arbitration Act |
| Insolvency petition | Undisputed debt of ₹1 crore or more owed by a company | IBC 7 / 9 |
| Criminal complaint | Only where there was fraud or cheating from the start | BNS 316, 318 |
Detailed guides: cheque bounce · commercial suits · arbitration · NCLT & IBC · legal notice
A buyer must pay a registered micro or small enterprise within the agreed period, which cannot exceed 45 days MSMED Act 15. On delay, the buyer owes compound interest at three times the RBI bank rate MSMED Act 16. The supplier can approach the MSME Facilitation Council (via the MSME Samadhaan portal) for conciliation and arbitration MSMED Act 18.
Courts discourage turning purely civil money disputes into criminal cases. A criminal complaint for cheating is appropriate only where there was dishonest intention at the time of the transaction. Choose the remedy that fits the facts.
Generally 3 years from the date the money became due, under the Limitation Act, 1963. A written and signed acknowledgement of the debt or a part payment made within that period starts a fresh limitation period.
A summary suit is a fast-track civil suit for recovery of a debt or fixed sum based on a written contract, bill of exchange, cheque or promissory note. The defendant cannot defend unless the court grants leave, which helps speed up recovery.
Bank transfer records, messages and witnesses can prove a loan. Send a legal notice first; if the money is not repaid, a civil suit for recovery can be filed within the limitation period.
Every case turns on its own facts. Speak to Advocate Ajay Mishra for advice specific to your situation — in person at IP Extension (Delhi) or Vaishali (Ghaziabad), by phone, or by video call.