Debt Recovery
The scariest thing about lending is the fear of default.
When the nightmare becomes a reality, with reminders and money repayment plans not being of use, the lender can initiate legal action. Sadly, in the present times, defaults on payments have become very common, resulting in the need of effective legal remedy.
We, at Magnus Legal Services LLP can help initiate civil action to recover your money with the help of our expert debt recovery advocates or help you secure an out of court settlement, depending on your circumstances. Let’s discuss each one in details:
Cheque Bounce:
Cheques are popular because once they are drawn and presented, they cannot be disregarded by both the drawer as well as the payee, i.e. presenter.
When a cheque is dishonoured, the payee’s bank gives the dishonoured cheque and the memo to the payee. If the cheque issuer still fails to make a payment, the payee has the right to sue the payer, as per Section 138 of the Negotiable Instruments Act, 1881. An important condition is that the amount mentioned in the cheque should be towards discharge of a debt or any other liability of the defaulter towards payee.
We, at Magnus Legal Services LLP, have successfully represented clients on both sides of such disputes arising out of Section 138 of the NI Act.
Civil Suits:
Lender can even file civil suits for recovering the money owed to them through promissory note or loan agreement under Order 37 of the CPC (Civil Procedure Code).
We at Magnus Legal help in drafting the summary suit, required as per law, summoning the person who borrowed money (i.e. defendant) and submitting the same to court. This makes the defendant liable to appear before the court within 10 days. In case of a no-show, the defendant is summoned again and loses, if the status quo remains the same. If the defendant shows and puts up a defence, we fight the suit on your behalf.
The advantage of the aforementioned procedure is that the comparative time taken is very less and there exists no burden on the part of plaintiff to prove the existence of legally enforceable debt. It is the defendant who needs to disclose facts sufficient to entitle him to defend.
Out of Court Settlements:
More often than not, after a suit is instituted under Order 37 of the CPC or under Section 138 of the Negotiable Instruments Act, 1881; the defendant tries to settle the dispute by paying 50-80% of the amount that is required to be paid. This helps the defendant get a haircut on their liabilities and also insulates the plaintiff against an unfavourable verdict.
We help in reaching such out of court settlements between parties.
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