Recovery of Money
If you have embracive chased a customer and there is still no sign of a payment, it’s time to consider the possible legal action you can take. Sometimes, there’s simply no choice but to escalate the matter further to ‘encourage’ a customer to pay. And there are no excuses for failing to make a payment.
Methods of Recovering a Company Debt
Try to Speak to the Debtor in Person
Sometimes a polite behavior may resolve the issues, so it’s always worth speaking to them in person before escalating the situation further.
Send Written Reminders, Keeping Record of Each
Send written reminders to the parties on periodic intervals with warning of legal action if you feel that’s a path you are prepared to go down.
Send a Legal Notice with Final Warning
Send a legal notice on debt recovery situations. This is essentially a final reminder/demand letter, which should confirm:
- exactly what monies are owed
- a clear timeframe (i.e. 15 days)
- what the consequences will be if they do not pay (i.e. type of legal action),
- You can also state that any proceedings which you will proceeds against him and also include a claim for Court fees and costs where applicable.
Legal Action if creditor failing to make a payment;
Civil Procedure Code Order XXXVII provides for the summary suit procedure. The provision has been made keeping in view certain suits, in order to prevent the unreasonable obstruction laid down by the defendant, who has no defence. Unlike other civil suits, the trial in summary suits begins after the court grants leave to the defendant to contest the suit. The court dealing with summary suits can pass the judgment in the favor of the plaintiff if (1) the defendant has not applied for leave to defend or if such application has been made but refused, or (2) the defendant who is permitted to defend fails to comply with the conditions on which the leave to defend was granted.
The procedure for money recovery
- The first step in the refund process will be to send legal notice to the defaulter.
- If you furthermore do not receive payment, you can go for one of these options. Summary lawsuits, negotiable instruments, criminal case or insolvency, and bankruptcy law.
- Our specialist team will lead you through the process to help you make the best choice.