Last updated: 18 October 2026
Short answer: A legal notice for recovery of money is a written demand that sets out who owes you money, how much, why it is due, and the deadline to pay before you go to court. Indian law does not make such a notice compulsory for most money claims (cheque bounce and suits against the Government are the big exceptions), but a clear notice often gets you paid without litigation and becomes strong evidence if you do sue. Send it while you are still well within the limitation period, which is usually three years.
This guide explains what the notice must contain, gives a short free sample you can adapt, lists the time limits that matter, and tells you what to do if the other side ignores it.
When is a legal notice required?
For an ordinary money claim (unpaid loan, unpaid invoice, refund owed under a contract) no general rule requires a notice before a civil suit. Send one anyway: it records your demand, gives a last chance to pay, forces a written position, and courts consider your conduct when deciding interest and costs.
In some situations a notice is a legal precondition, and getting it wrong can sink the case:
| Situation | Law | What is required |
|---|---|---|
| Cheque returned unpaid | Section 138, Negotiable Instruments Act, 1881 | Written demand within 30 days of the bank’s return memo; the drawer gets 15 days to pay. See our cheque bounce notice guide. |
| Suit against the Central or a State Government, or a public officer for an official act | Section 80, Code of Civil Procedure, 1908 | Written notice; the suit can be filed only after two months from delivery, unless the court grants leave for urgent relief. |
| Commercial dispute of Rs 3 lakh or more | Section 12A, Commercial Courts Act, 2015 | Not a notice as such, but pre-institution mediation must be tried before suing unless you need urgent interim relief. |
| Contract with an arbitration clause | Section 21, Arbitration and Conciliation Act, 1996 | Arbitration starts on the date the other side receives your request to refer the dispute. |
What a money recovery notice must contain
A good notice is short, factual and specific. Vague notices (“you owe my client a large sum”) invite vague replies and weaken your later case. Include the following.
| Element | Why it matters |
|---|---|
| Full name and address of the sender and the recipient | Identifies the parties; for a company, address it to the company at its registered office and mark a copy to the person in charge. |
| How the debt arose | Loan, goods sold, services rendered, advance to be refunded, security deposit. Give dates. |
| Documents relied on | Invoice numbers, agreement date, bank transfer reference, acknowledgment messages. Mention them; attach copies if useful. |
| The exact amount | Principal separately from interest and costs, so the figure is easy to verify. |
| Interest claimed | Contract rate if there is one; otherwise a reasonable rate from a stated date. |
| Deadline | Usually 15 days from receipt. Do not give so long a period that limitation runs out meanwhile. |
| Mode of payment | Bank details or a demand draft, so the recipient cannot claim confusion. |
| Consequence | That you will file a civil suit or other proceedings for recovery with interest and costs, without further notice. |
| Signature and date | Signed by you, or by your advocate on your instructions. |
Free sample: short notice for recovery of money
Use this as a starting point for a simple claim. Replace everything in square brackets and delete what does not apply.
LEGAL NOTICE FOR RECOVERY OF MONEY
Date: [date]
By Speed Post with proof of delivery and by e-mail
To,
[Name of debtor]
[Full address with PIN code]
[E-mail address]
Subject: Demand for payment of Rs [amount] due to [your name]
1. On [date], I lent you Rs [amount] by [bank transfer / cheque no.] [OR: I supplied goods / services to you under invoice no. [ ] dated [ ]]. You agreed to repay [the amount / pay the invoice] by [date].
2. Despite reminders dated [dates], including your message of [date] in which you admitted the amount, you have not paid. Rs [amount] remains due as principal.
3. I am entitled to interest at [the agreed rate of [ ] per cent per annum / a reasonable rate of [ ] per cent per annum] from [date] until payment.
4. I call upon you to pay Rs [amount] with interest of Rs [amount] calculated up to [date], total Rs [amount], within 15 days of receiving this notice, by transfer to account no. [ ], [bank], IFSC [ ].
5. If you fail to pay within this period, I shall file proceedings for recovery of the amount with interest and costs before the competent court, entirely at your risk as to costs and consequences.
Yours faithfully,
[Signature]
[Name, address, phone, e-mail]
This sample does not suit cheque bounce, claims against Government bodies or contracts with an arbitration clause, which need their own wording.
Need the complete, editable set? The Lexfolio Legal Notice Set has ready Word formats for money recovery, cheque dishonour, section 80 CPC notices, consumer refunds, builder delay, tenant arrears, arbitration and defamation, plus reply formats and Hindi versions, with a plain language guide on time limits and service.
Time limits: check limitation before you send
A legal notice does not stop the limitation clock. If your claim becomes time barred while you wait for a reply, the notice will not save it. The common periods under the Schedule to the Limitation Act, 1963 are:
| Claim | Period | Time runs from |
|---|---|---|
| Money lent (Article 19), including a loan payable on demand (Article 21) | 3 years | The date the loan is made |
| Price of goods sold and delivered, no fixed credit period (Article 14) | 3 years | The date of delivery |
| Price of work done, no time fixed for payment (Article 18) | 3 years | When the work is done |
| Promissory note payable on demand (Article 35) | 3 years | The date of the note |
| Compensation for breach of contract (Article 55) | 3 years | When the contract is broken |
| Any other suit not specifically provided for (Article 113) | 3 years | When the right to sue accrues |
How to get a fresh period: a written and signed acknowledgment of the debt made before limitation expires starts a new period (section 18). A part payment made before expiry also does so, if it is acknowledged in writing signed by the payer (section 19). Save every message in which the debtor admits the amount.
How to send the notice and prove delivery
- Speed Post: since 1 September 2025 India Post has merged its domestic registered post service into Speed Post. Ask for proof of delivery at the counter and keep the booking receipt and the tracking printout.
- E-mail and WhatsApp: send a signed PDF to the address or number the debtor has used with you. Courts increasingly accept electronic service, but for important notices use post as well.
- Hand delivery: get a signature with name and date on your office copy, or a receiving stamp for an office.
- Keep the file: signed copy, receipts, tracking report, screenshots and any returned envelope (do not open it; it may have to be shown sealed in court).
A notice sent to the correct address by post is presumed delivered under section 27 of the General Clauses Act, 1897, and a letter returned “refused” is usually treated as served.
What happens after you send it
If the debtor pays or proposes instalments
Record any settlement in writing, signed by both sides, with the schedule of payments and what happens on default. If the debtor pays part, acknowledge it in writing and keep the balance claim alive.
If the debtor replies and disputes the claim
Read the reply carefully. A reply that admits part of the debt is useful evidence. Do not get into a long exchange of letters; one short rejoinder is enough.
If the debtor ignores the notice
You can choose the route that fits your claim:
- Civil suit for recovery: filed in the civil court with territorial and pecuniary jurisdiction. Court fee is set by State law and is usually a percentage of the claim.
- Summary suit under Order XXXVII CPC: available where the claim is on a bill of exchange, promissory note, or a written contract or guarantee for a fixed sum. The defendant must obtain leave to defend, which makes it faster for clear documentary claims.
- Commercial suit: for a commercial dispute of Rs 3 lakh or more, apply first for pre-institution mediation under section 12A of the Commercial Courts Act. The Supreme Court held in Patil Automation Pvt. Ltd. v. Rakheja Engineers Pvt. Ltd. (17 August 2022) that this step is mandatory unless urgent interim relief is sought.
- MSME supplier claims: a micro or small enterprise registered on Udyam whose buyer has not paid within the agreed period (which cannot exceed 45 days) can claim compound interest at three times the RBI bank rate and refer the dispute to the Micro and Small Enterprises Facilitation Council, through the MSME Samadhaan portal, under sections 15 to 18 of the MSMED Act, 2006.
- Consumer refunds: if you are a consumer owed a refund, the Consumer Commission is usually cheaper and faster. See our guide on filing a consumer complaint on e-Jagriti.
Common mistakes
- Sending the notice when limitation has almost run out, then waiting for a reply.
- Demanding an inflated figure that you cannot support with documents.
- Writing threats of criminal cases for a purely civil debt. This can backfire and is not a substitute for a civil claim.
- Using a wrong or old address and having no proof of delivery.
- Mixing up the cheque bounce notice with an ordinary recovery notice. A section 138 notice has its own strict rules.
- Not keeping copies of the notice and the postal receipts.
Should you send it yourself or through an advocate?
You can send a recovery notice in your own name; there is no rule that only an advocate can send one. A notice on an advocate’s letterhead often gets more attention, and an advocate will check limitation, jurisdiction and the correct parties. For larger claims, claims against companies, or anything that may end up in court soon, professional drafting is worth it.
Prefer to draft it yourself, properly? The Legal Notice Set gives you tested English and Hindi formats with guidance notes on every clause, a limitation table, a delivery checklist and reply formats, so your notice holds up if the matter reaches court.
Frequently asked questions
Is a legal notice compulsory before filing a money recovery suit?
No, not for an ordinary civil claim. It is compulsory for cheque dishonour under section 138 of the Negotiable Instruments Act and for suits against the Government under section 80 CPC. For commercial disputes of Rs 3 lakh or more, pre-institution mediation is mandatory unless you seek urgent interim relief.
How many days should I give in the notice?
Fifteen days from receipt is common and reasonable. Do not give a long period if limitation is close.
Can I send a legal notice by WhatsApp or e-mail?
Yes, as a supporting mode. Send a signed PDF and keep screenshots showing delivery. For important claims, also send it by Speed Post with proof of delivery.
What if the debtor refuses to accept the notice?
A correctly addressed notice returned as “refused” is generally treated as served. Keep the returned envelope sealed and the tracking report.
Does sending a notice extend the limitation period?
No. Only a written, signed acknowledgment of the debt or an acknowledged part payment made before expiry gives you a fresh period.
Can I claim interest in the notice?
Yes. Claim the contract rate if one was agreed, or a reasonable rate from a stated date. The court decides the final rate if the matter goes to trial.
*This article is general information, not legal advice.*