How To Draft a Legal Notice for Recovery of Money?

by  Adv. Priyanka Sampathy  

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Legal notice for recovery of money

Introduction

  • Legal notice can be used by one party to notify the other party that legal issues and grievances need Redressal or else there might be the necessary court proceedings done for the Redressal. 
  • This is a type of warning or notification from the grieving party to solve any issue that has caused them damage of some kind so that steps may be taken to solve it at ground level.
  • Several disagreements and misunderstandings happen between companies or two individuals and they consider taking legal action.
  • Giving legal notice for the recovery of money is the first step and is very important before filing a lawsuit against the other party.

What is meant by a Legal Notice?

  • In India, it is the basic step of any legal action. These documents are professionally written by or on behalf of the grieving party to the opposite party who is either a person or an entity. 
  • This is sent via direct mail or courier or handed in person to the opposite party. This notice acts as a warning to the receiver who has harmed or caused damage to the sender in any way. The legal notice for recovery of money can be drafted with the help of a business lawyer who is proficient in these tasks. 
  • The legal notice for recovery of money might explain what has caused the action, how much money was not paid, the period to reply, and the damage caused due to nonpayment and similar explanation of facts.
  • If this notice is disregarded and the warnings are unmet, the sender may start with legal proceedings. 

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When should someone send a legal notice for the recovery of money?

  • There is misconduct if the person is not interacting and returning the owed amount as per the agreed duration. The legal notice for recovery of money becomes the initial step that the affected person takes. 
  • The opposite party may or may not have intentionally caused the damage and have a way to avoid legal proceedings by sending an appropriate reply to the notice and clearing dues.
  • They receive a stipulated period within which the sender expects a response and Redressal.
  • The sender may seek a legal remedy if no heed is paid to their grievance to retrieve the amount due.
  • The business lawyer can help to prepare the legal notice and it states how genuine efforts were made to establish a mutual base of understanding and retrieve the money, but as there was no solution, a legal notice for recovery of money is sent with a sincere offer of settlement.

Application of sending a legal notice for recovery of money

  • There are notes and bills of exchange in every case as requested and required in the legal notice for recovery of money. 
  • Any kind of claim where the plaintiff has tried to retrieve the money back and made the necessary effort that the defendant pays it back.
  • There must be a written agreement or any legal provisions to back up as evidence in the case of the legal notice for recovery of money. 
  • The response is to be filed with the Supreme Court as per the laws. They can also file to a Civil court if needed or a similar court as notified by the Supreme court.

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Necessary Documentation required for sending a legal notice for recovery of money 

When an individual is planning to send a legal notice for recovery of money, they must get legal advice to know which documents are needed which are relevant to the case.

The documents required are as follows:

  • If any relative or friend has taken a loan or borrowed, the individual giving the loan must prepare an affidavit mentioning the same as it acts as evidence in the court of law.
  • If an employee is drafting a legal notice for recovery of money, then the employment contract which states the salary that the organisation will pay in exchange for service will be needed in Court proceedings.
  • Any other extra documentation that might be the transaction and can act as evidence is attached or mentioned in the legal notice for recovery of money. 

Duration of filing a case against the opposition

  • As per Indian law, the grieving party has a 3-year period in which they are required to file a claim for their due amount.
  • The statute of limitation becomes active after this duration and any case filed after that is not valid.
  • If by any chance, a suit is filed after limitation has passed, then extremely precise and good grounds must be disclosed in such a case.

Contents which are required for legal notice for recovery of money

  • An advocate’s letterhead is required to precisely and clearly, write a legal notice for recovery of money. 
  • The advocate’s address and phone numbers are to be included in the legal notice for the recovery of money.
  • The recipient’s address, name, and phone number or contact information should be mentioned.
  • The client’s address, number, and name must be added to the legal notice for the recovery of money. 
  • The cause and how their actions damaged or harmed the client must be mentioned. 
  • The remedy that the person is seeking should be mentioned. 
  • The notice is usually written in simple and easy-to-read and understandable language. 
  • The facts and information should be stated in small paragraphs so that the opposite party can comprehend each fact and cause.
  • A deadline is to be given to the opposite party with clear details on how to send a reply and when.

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Aftermath of receiving a legal notice for recovery of money 

  • Carefully going through the notice to understand each facet and the remedy mentioned. 
  • If there is a window for talking it out and settlement, the receiver must reach an amicable resolution with the sender.
  • The next step is contacting a lawyer  for legal advice or advocate for the required answers and help.
  • Outline the exact facts, dates, information, and any relevant details that the lawyer must know to proceed with sending an appropriate reply.
  • The reply is sent by any registered courier or mail service. 
  • A copy of the legal notice is kept by the lawyer and the sender to use in the future as evidence for any proceedings. 

People Also Read: What to do if you receive a Lawyer’s notice?

Conclusion 

A legal notice is sent before issuing a lawsuit as it can help in the settlement and recovery of the due amount within outside court talk. The lawyer prepares it with their experience and expertise. 

The drafting of a legal notice for recovery of money can be done through a professional business lawyer who can perfectly input data and make the process faster.

Adv. Priyanka Sampathy

Adv. Priyanka Sampathy

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Priyanka Sampathy is a legal consultant who prioritises ethical and professional conduct while striving to achieve desired outcomes. With over 15 years of independent practice, she has significant expertise in handling legal cases. Her exceptional communication skills enable her to express arguments in a clear and persuasive manner, both in writing and verbally, in Hindi, English, and Telugu.

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