Who This Article Is For :

Maybe you lent a friend money and they stopped picking up calls. Maybe you are a small business owner sitting on unpaid invoices that are three months old and the client keeps giving you the runaround. Maybe someone gave you a cheque that bounced — and now they are not responding. Or maybe you are simply trying to understand how the law works before deciding whether going to court is worth it at all.

This article is for all of those people. It covers three legal routes for recovering money in India — the Regular Civil Suit, the Summary Suit, and the Cheque Bounce Complaint. These are the most commonly used legal mechanisms for recovering money owed, and they serve different purposes. Knowing which one applies to your situation is the starting point for everything else.

A bounced cheque is not just a civil matter — it is a criminal offence under Indian law. This changes the dynamics of recovery significantly and is explained in detail in a dedicated section below.

Should You Even Go to Court?

This is the first question worth asking, and most people skip it. Going to court in India takes time. It costs money. It requires patience. And it does not always end the way you expect. So before anything else, honestly assess whether litigation makes sense for your specific situation.

That said, there is a reason money recovery suits are among the most commonly filed civil matters in the country. When everything else has failed — when the person who owes you money is not responding, not paying, and not engaging — the court is often the only option that produces a concrete result.

Here is the key difference that litigation makes: without a court decree or a criminal conviction with a compensation order, you cannot compel repayment. You cannot touch the debtor’s property, freeze a bank account, or get any government machinery to act on your behalf. A court order changes that completely. The debtor who has been comfortably ignoring you becomes considerably less comfortable once a court gets involved.

For MSMEs and small business owners especially, a defaulted payment can directly affect the ability to pay suppliers, employees, and running costs. The law exists precisely for this — to give you a mechanism to enforce what is legitimately owed to you. The question is not whether the law can help. The question is how to use it correctly.

Three Legal Routes — An Overview

Before getting into the details of each, it helps to understand what distinguishes these three mechanisms from one another, because people often confuse them or assume one is enough when both may be necessary.

A Regular Civil Suit is the standard route for recovering money through court. It gives both sides a full opportunity to present their case through pleadings, documents, and witnesses. It is thorough, but it is slow — typically three to seven years in most district courts.

A Summary Suit is an accelerated civil procedure for claims based on documented, fixed-amount debts. The defendant has no automatic right to contest — they must seek the court’s permission to defend. This makes it significantly faster than a regular suit when the claim qualifies.

A Cheque Bounce Complaint is a criminal complaint, not a civil suit. It is available when a cheque issued as payment is dishonoured by the bank. It carries the threat of imprisonment and fine, which creates real pressure on the accused to settle. It can also result in a court order directing the accused to pay compensation to the complainant.

These routes are not mutually exclusive. A person who has a bounced cheque can simultaneously file a cheque bounce complaint and a civil suit for recovery. Both serve different legal purposes, and using them together — where appropriate — is a legitimate and often effective strategy.

Where Do You File? Understanding Jurisdiction

Before a suit is filed, you need to know which court to file it in. Filing in the wrong court wastes time and money. A plaint filed in a court that lacks jurisdiction is simply returned — not rejected, but sent back for you to re-file in the right court. Court fees are not lost, but the delay certainly is.

Territorial Jurisdiction — Which City or District

You can file in any court within whose limits the person you are suing resides, carries on business, or works for gain — or where the cause of action arose. In plain terms: you can file where the debtor lives or runs their business, or where the transaction took place — where the agreement was signed, where payment was due, or where goods or services were delivered.

If those locations are different, you may have a choice of courts. But the connection between your claim and the court’s territorial limits must be clearly stated in the plaint. Courts do check, and a vague claim of jurisdiction is an easy target for an early objection by the other side.

There is also a rule that requires you to always file in the lowest-level court that has the power to decide your case. A matter that a Civil Judge can hear should not be taken directly to a District Court. This is a legal requirement, not a suggestion.

Pecuniary Jurisdiction — Which Level of Court

Every court in the civil hierarchy is empowered to hear suits only up to a certain financial limit. These limits vary by state and are periodically revised. If you are claiming Rs. 8 lakhs, you need to file in a court whose pecuniary jurisdiction covers that amount. Confirm the applicable limits in your state before filing.

For commercial disputes above a specified value threshold — which varies by state — a specialised Commercial Court may be the appropriate forum. Commercial Courts operate under tighter timelines and stronger cost-award provisions, which can work in the plaintiff’s favour.

Subject Matter Jurisdiction — Is Civil Court the Right Forum?

For most individuals and businesses recovering a debt, a civil court is the right place. Exceptions exist where specific laws direct disputes to specialised tribunals — for instance, banks recovering secured loans above certain thresholds have dedicated recovery tribunals, and employment wage disputes belong to labour courts. If you are unsure whether a specialised forum applies to your situation, that is worth clarifying before the plaint is drafted.

Court Fees — What It Costs to File

Filing a civil suit is not free. Court fees are calculated as a percentage of the total amount you are claiming — the larger the claim, the higher the fee. The fee must be paid when you file the plaint. If insufficient court fee is paid, the plaint is returned and must be corrected before it is accepted.

The calculation is based on the total value of the suit, including the principal amount and, if you are specifically claiming interest that has already accrued up to the date of filing, that interest is counted too.

Getting the valuation right matters. Over-valuing the suit means paying more court fee than necessary. Under-valuing it can result in the court directing you to pay the deficit before the decree is passed — or, in some cases, limiting the decree to the undervalued amount.

Some people deliberately exclude pre-filing interest from the plaint valuation to reduce the upfront court fee, and instead claim it separately when the decree is passed. This is a legitimate approach but must be handled carefully in the drafting of the plaint.

The Regular Civil Suit

A regular civil suit is the standard route for recovering money through court. It gives both sides — you and the person you are suing — a full opportunity to present their case through documents, witnesses, and arguments before the judge. This process is thorough. It is also slow.

If your claim is genuinely disputed — if the other side is saying they never borrowed the money, or that the goods were defective, or that the agreement was never valid — a regular suit is often the only appropriate route. The full trial process exists for a reason: to allow complex, contested facts to be examined properly.

When a Regular Suit Is the Right Choice

A regular suit makes sense when the defendant is likely to contest the claim seriously — not just as a delay tactic, but because there is an actual factual dispute at the heart of the matter. It also applies when the amount you are claiming cannot simply be calculated from a document but needs to be assessed through evidence — for instance, compensation for losses caused by a breach of contract.

If the debt is undocumented, or your evidence spans multiple transactions and witnesses, the regular suit’s full trial process gives you the space to build your case properly. The compressed summary procedure can actually disadvantage a plaintiff whose claim requires detailed evidence to establish.

How the Case Moves — Step by Step

The plaint is filed with all supporting documents attached. Documents must be filed with the plaint from day one — gather all your evidence before filing, not after. Courts are strict about this, and adding documents later generally requires special permission.

Once the court registers the plaint and issues summons, the defendant is officially served. They then file a written statement setting out their version of events and their defences. Based on both the plaint and the written statement, the court frames the specific questions of fact and law that the trial will focus on.

The trial itself involves evidence — documents are formally exhibited, and witnesses are examined and cross-examined. After both sides conclude their evidence, arguments are heard, and the court delivers its judgment. If you succeed, a decree is passed for the amount found due.

How long does this take? In most district courts across India, a contested regular civil suit takes three to seven years — sometimes longer. This is the reality. It is not a reason to avoid litigation if your claim is legitimate and the amount is significant, but it is information you need before you decide to file.

The Summary Suit — The Faster Civil Route

If a regular civil suit is the full process, a summary suit is the express lane — but only if your claim qualifies. Not every money recovery matter does. When it does, though, the difference in speed and outcome can be dramatic.

The core idea behind a summary suit is straightforward. There is a category of debt — clear, documented, and not genuinely in dispute — that should not require a years-long trial to enforce. A promissory note, a cheque, a written loan agreement with a fixed repayment schedule: these are situations where the debt is on paper, the amount is calculable, and a full trial mainly serves to delay the inevitable. The summary suit procedure was designed to cut through that delay.

The critical difference from a regular suit: the defendant has no automatic right to contest your claim. They must seek the court’s permission to defend — and that permission is not granted unless they can show a genuine, triable issue exists.

Does Your Claim Qualify?

A summary suit can be filed for claims based on bills of exchange, hundies, or promissory notes. It also covers suits to recover a debt or liquidated demand in money arising from a written contract or a guarantee — provided the amount is fixed and definitively ascertainable.

The phrase ‘liquidated demand’ is the key. It means the amount must be calculable from the document itself — a number on a promissory note, a loan repayment amount in a written agreement, a specific figure in a guarantee. If the amount requires the court to assess what the loss actually was — which is the case in many contract disputes — it is not liquidated, and the summary route does not apply.

A practical example: you lent someone Rs. 5 lakhs through a written agreement with a fixed repayment date that has passed and they have not paid — that qualifies. You are claiming Rs. 5 lakhs as compensation for losses suffered because a contractor abandoned your project halfway, and the court needs to determine what the losses actually came to — that does not qualify. Regular suit is the appropriate route for the second scenario.

What Happens in a Summary Suit

The defendant is served with summons containing a specific instruction: appear within ten days and apply for permission to defend. If they do not appear within ten days, you can apply for judgment immediately. No trial, no evidence stage, no years of adjournments.

If the defendant does appear, they must file an application for leave to defend supported by an affidavit that explains what their defence actually is and what facts support it. The court then examines whether a real, triable issue exists. An affidavit that vaguely says ‘I do not owe this money’ without explaining why — or one that raises a defence clearly untenable on the facts — will not get leave to defend.

If the court finds the defence has some substance but is not entirely convincing, it can grant conditional leave to defend — requiring the defendant to deposit the disputed amount, or part of it, before being allowed to contest the suit. This prevents the summary procedure from being used purely as a delay tactic.

Where leave to defend is refused entirely, judgment is pronounced in the plaintiff’s favour without trial. An uncontested summary suit can produce a decree in months. This is the most important practical distinction from a regular suit.

Cheque Bounce — A Criminal Route to Recovery

A bounced cheque is something many people experience and few fully understand the legal implications of. When someone gives you a cheque and it is returned by the bank — marked ‘insufficient funds’, ‘account closed’, ‘payment stopped’, or any similar reason — that is not just a transaction failure. Under Indian law, it is a criminal offence.

This distinction matters enormously. A civil suit asks the court to order the debtor to pay. A cheque bounce complaint asks the court to hold the accused criminally liable — with imprisonment up to two years and a fine as possible consequences. That threat carries a weight that a civil suit notice simply does not. In practice, the majority of cheque bounce cases are settled before or during trial, precisely because the accused wants to avoid a criminal record.

What Makes a Cheque Bounce a Criminal Offence

Not every bounced cheque automatically gives rise to a criminal complaint. The law lays down specific conditions, and all of them must be met. Missing any one of them can make your complaint legally infirm.

First, the cheque must have been issued for the discharge of a legally enforceable debt or liability. A cheque given as a gift, or a post-dated cheque issued for a future contingency that has not yet crystallised, may not qualify. The underlying obligation must be an existing legal debt.

Second, the cheque must be presented to the bank within three months of the date written on the cheque. If you received a cheque dated 1st January and you present it to the bank on 5th April — more than three months later — it is time-barred for the purposes of the criminal complaint, even if the bank returns it unpaid.

Third — and this is the step most people mishandle — within 30 days of receiving the bank’s return memo (the document telling you the cheque was dishonoured), you must send a formal written demand notice to the person who gave you the cheque, demanding payment of the cheque amount. This notice must be sent by registered post. A WhatsApp message, email, or phone call does not satisfy this legal requirement.

Fourth, if the person does not make payment within 15 days of receiving your notice, the criminal offence is constituted. You then have 30 days from the end of that 15-day window to file the complaint before the Magistrate.

Timelines in a cheque bounce case are strict and unforgiving. Present the cheque within three months. Send the demand notice within 30 days of the return memo. File the complaint within 30 days of the 15-day payment period expiring. Missing any one of these deadlines can make the entire complaint non-maintainable.

Which Court Handles a Cheque Bounce Complaint

A cheque bounce complaint is filed before a Judicial Magistrate or a Metropolitan Magistrate — not a civil court. The court that has jurisdiction is the one within whose local limits the bank branch where you presented the cheque for payment is located.

For example, if the cheque was drawn on a Delhi bank but you presented it at your bank’s branch in Mumbai, you file the complaint in Mumbai. The location of the cheque-giver’s bank, or where the cheque was issued, does not determine jurisdiction. What matters is where you presented it.

What the Court Can Award in a Cheque Bounce Case

The Magistrate can sentence the accused to imprisonment up to two years, impose a fine up to twice the cheque amount, or both. Separately, the Magistrate can order the accused to pay compensation to the complainant out of any fine imposed.

In practice, courts frequently direct the accused to pay the cheque amount as compensation to the complainant as part of the sentence. This is one of the most tangible recovery outcomes of a cheque bounce case — and it can happen without a separate civil suit being filed, provided the court exercises this power.

Compounding — Settling the Case

A cheque bounce offence is compoundable — meaning both sides can agree to settle, and the case is then closed. In practice, compounding is how most cheque bounce cases end. The accused pays the cheque amount, and often some additional sum for costs and interest, both sides sign a compromise before the court, and the complaint is withdrawn.

This settlement pressure is often the entire point of filing the complaint. Many creditors file a cheque bounce complaint not necessarily expecting a conviction, but because the criminal proceeding creates a level of urgency that a civil notice alone does not. When a person faces the possibility of appearing in a criminal court, a summons arriving at their home or office, and the potential of a conviction record — they tend to engage with the creditor in a way they had not before.

Filing a Cheque Bounce Complaint and a Civil Suit Together

Yes, you can do both. Filing a cheque bounce complaint does not bar you from also filing a civil suit for recovery of the cheque amount — and vice versa. They serve different legal purposes. The criminal complaint addresses the offence. The civil suit creates a decree that can be enforced through civil execution.

In many high-value cheque bounce cases, creditors pursue both simultaneously. The criminal complaint applies pressure and may result in settlement or a compensation order. The civil suit ensures that even if the criminal case takes longer, a civil decree can be pursued independently. Once you recover the amount through one proceeding, the other becomes infructuous — but pursuing both from the start is legally permissible and tactically sound.

Getting Interim Money While the Case Is Running

An important provision that many complainants are not aware of: during the pendency of a cheque bounce complaint — once the accused pleads not guilty — the trial court can direct the accused to pay interim compensation to the complainant of up to 20% of the cheque amount. This compensation is payable within 60 days of the order.

If the accused is ultimately acquitted, the court can direct the complainant to repay this interim amount with interest. But where the cheque is clearly genuine and the defence appears to be a delay tactic, this provision allows partial recovery well before the trial concludes — something that most complainants do not think to apply for.

Documents You Need for a Cheque Bounce Case

Before approaching the Magistrate, make sure you have the following in order:

• The original bounced cheque — do not misplace it. It is the primary evidence in the case.
• The bank’s return memo or dishonour slip, stating the reason the cheque was returned and the date.
• Proof of sending the demand notice — the registered post receipt and, where available, the delivery acknowledgment signed by the recipient.
• A copy of the demand notice itself, showing the amount demanded and the date it was sent.
• Any prior agreement, invoice, or document establishing the underlying debt — this helps establish that the cheque was given in payment of a real, legally enforceable obligation.

If the accused claims the cheque was a blank cheque that was misused, or that it was given as security rather than as payment, these background documents help counter that defence. Courts deal with such claims regularly, and the underlying transaction documents significantly strengthen the complainant’s position.

Interest — What You Can Claim and When

Interest in a money recovery civil suit must be specifically claimed in your plaint. Courts will not award what has not been asked for, and the decree is limited to the relief sought. There are three distinct periods for which interest can be claimed.

Interest Before You Filed the Suit

This is interest that accrued from the date the debt became due up to the date of filing. If your agreement specifies an interest rate, you are entitled to claim it for this period. If no rate is specified, the court may award a rate it considers reasonable — though courts tend to be conservative in this exercise, which is why having a contractual rate in your agreement is always better.

The demand notice sent before filing is directly connected to this. It typically fixes the reference date from which interest is calculated. A well-drafted notice that clearly states the amount owed and the date of default creates a clean starting point for the interest claim.

Interest While the Case Is Pending

The court has the power to award interest from the date the suit was filed to the date of the decree. This is discretionary — the court decides the rate. In practice, courts award between 6% and 12% per annum in most civil matters, though commercial disputes can attract higher rates. You must specifically pray for this in your plaint. It is not automatically granted.

This is also where the choice between a summary suit and a regular suit has a direct financial impact. If the regular suit takes five years and the summary suit takes eight months, the difference in interest accumulation on a large claim is significant — for both sides.

Interest After the Decree Is Passed

The court can also award interest from the date of the decree to the date of actual payment. This matters because executing a decree — actually collecting the money — can itself take time. Post-decree interest ensures the debtor cannot benefit financially from further delays at the execution stage. Again, it must be specifically prayed for in the plaint — it is not automatic.

In a cheque bounce criminal case, interest as such is not awarded through the criminal proceedings. The fine and compensation awarded by the Magistrate may factor in the complainant’s loss at the court’s discretion, but for a full interest claim on the cheque amount, a parallel civil suit remains the appropriate route.

Damages — Claiming More Than Just the Principal

In some situations, the loss you have suffered goes beyond the unpaid principal. A business partner’s default that causes you to lose a contract, or a bounced cheque that disrupts your cash flow and forces you into high-interest borrowing — these are situations where additional damages beyond the debt amount itself may be claimable.

General and Special Damages

General damages flow naturally from the type of default that occurred and are presumed by law — they do not require detailed proof of each rupee lost, but they must be specifically prayed for in the plaint. Special damages are losses particular to your circumstances — losses that would not ordinarily arise from this kind of default, but that arose in your specific situation.

Special damages must be pleaded with precision: you need to clearly state in the plaint what the additional loss was, how it arose, and why it is directly attributable to the other side’s failure to pay. They must also be supported by documentary evidence. Courts reject vague special damages claims with consistency.

If you are claiming that a bounced cheque caused you to lose a supply contract, you need documentation showing the contract existed, that it was lost, and that the loss was directly caused by the dishonour. A bare assertion will not carry the claim, regardless of how clearly you state it.

Costs of Litigation

The winning side is ordinarily entitled to recover the costs of the suit from the losing side. In practice, civil court cost awards have historically been modest — they rarely cover what a party actually spent on litigation. In Commercial Courts, however, the rules allow courts to award actual costs including advocate fees in appropriate cases, which is worth specifically praying for in the plaint when the matter is filed in a Commercial Court.

Which Route Is Right for Your Situation?

The honest answer is that it depends on the specific facts of your case. But some general guidance applies across different situations.

If you have a bounced cheque, filing a cheque bounce complaint is almost always the first step. The timelines are strict, and delay risks losing the right to file altogether. The criminal route creates settlement pressure that civil suits alone cannot replicate. Whether you also file a civil suit alongside depends on the amount involved and whether a civil decree would provide additional enforcement leverage.

If the debt arises from a written promissory note, a loan agreement with a fixed repayment amount, or a documented guarantee — and the amount is certain — a summary suit is the faster civil route. The defendant has no automatic right to contest, and if they cannot show a genuine defence, a decree follows without trial.

If the claim is genuinely disputed on the merits, or if the amount owed requires assessment rather than arithmetic, a regular civil suit is the appropriate route. It is slower, but it gives both sides the opportunity for a full hearing — which is what a genuinely contested claim requires.

For individuals dealing with smaller amounts — a personal loan, a post-dated cheque, a service rendered and unpaid — the cheque bounce complaint and the summary suit together are often the most practical combination. For businesses and MSMEs dealing with large commercial defaults involving multiple invoices and a pattern of non-payment, a regular civil suit combined with a cheque bounce complaint (if a cheque was issued) is worth considering seriously.

The Legal Notice — Do Not Skip This Step

A legal notice is mandatory before suing the government. In a cheque bounce complaint, the demand notice is not optional — it is a strict statutory prerequisite that must be sent within 30 days of receiving the bank’s return memo. For all other civil suits against private parties, a legal notice is technically optional, but skipping it is rarely wise.

Sending a formal legal notice fixes the date from which interest is calculated. It creates a written record that the debtor was put on notice and chose not to respond. And it sometimes resolves the matter entirely — debtors who ignored informal calls and messages often respond when a registered post notice arrives from an advocate, because it makes the prospect of litigation concrete and immediate.

In a cheque bounce case, the demand notice must be sent within 30 days of receiving the bank’s return memo, must clearly state the cheque amount, and must give the drawer 15 days to make payment. Failure to comply with this requirement means the complaint is not legally maintainable. A well-drafted notice for a civil suit can simultaneously serve as the cheque bounce demand notice if the facts allow for it — but the drafting must be precise.

Always send the notice by registered post with acknowledgement due. Keep the receipt and the delivery acknowledgment. They become evidence in the case.

What You Should Have Ready Before You File

Regardless of which route applies to your situation, preparation before filing determines how smoothly the case moves. Courts are considerably less sympathetic to complainants and plaintiffs who arrive with incomplete documentation and ask for time to gather it later.

For a civil suit — regular or summary — you should have:

• The original agreement, promissory note, or any written document evidencing the debt — even an informal written acknowledgment.
• Bank statements showing the transfer of money to the debtor.
• All communication records — WhatsApp messages, emails, SMS — where the debtor acknowledged the debt or made promises to repay. Courts accept digital evidence.
• A copy of the legal notice sent, with the registered post receipt and delivery acknowledgment.
• The debtor’s current address — jurisdiction and service of summons depend on it.

For a cheque bounce complaint, you additionally need:

• The original bounced cheque — do not misplace this under any circumstances.
• The bank’s return memo stating the reason for dishonour and the date.
• The demand notice sent within 30 days of the return memo.
• Proof of sending — registered post receipt and acknowledgment of delivery.
• Any underlying agreement or invoice establishing the legally enforceable debt behind the cheque.

Getting the Decree Is Not the End — Execution Is

This applies to civil suits. A decree is not payment — it is a court’s recognition that payment is owed. The actual recovery happens through execution proceedings, which is its own separate legal process that follows after the decree is passed.

A decree-holder can seek attachment of the judgment debtor’s bank balances and movable property, attachment and sale of immovable property, garnishee orders directing a bank or third party holding money for the debtor to pay it to the decree-holder instead, or in appropriate cases, civil imprisonment of the judgment debtor. The choice of execution mechanism depends on what assets the debtor actually has.

This is a practical point that is worth thinking about before you file. A decree against a person with no traceable assets is difficult to enforce. Basic due diligence on the debtor’s financial position before filing — particularly in high-value matters — is worth doing. It does not change whether you have a legal right to recover; it affects whether recovery is actually feasible.

Execution must be initiated within 12 years from the date of the decree. That sounds like a long window, but complacency at this stage costs people money. Debtors dissipate assets over time. Businesses close. Property gets transferred. Prompt execution after obtaining a decree is always the better approach.

In a cheque bounce case where the Magistrate has ordered compensation to be paid to the complainant, that order is enforced through the criminal court’s own process — not a civil executing court. If the accused fails to pay the compensation ordered, the complainant can apply to the Magistrate for enforcement.

To Summaries

Three legal routes exist for money recovery in India, and they are not interchangeable. The regular civil suit is thorough but slow — suited for genuinely contested, complex, or unliquidated claims. The summary suit is the faster civil route for documented, fixed-amount debts — when it qualifies, it is almost always preferable. The cheque bounce complaint is a criminal mechanism that creates settlement pressure no civil notice can replicate — and for anyone holding a dishonoured cheque, the strict timelines mean it must be filed promptly.

Whether you are an individual who lent money to a relative and never saw it again, a freelancer whose client issued a cheque that bounced, or an MSME owner dealing with a defaulting distributor who promised payment on instruments that were never honoured — the law has a mechanism for you. What it requires is that you use it correctly, in the right court, with the right documents, and within the right timelines.

A decree and a compensation order are not just legal victories. They are the starting point for actual recovery. Getting there requires preparation, the right choice of procedure, and — critically — not missing a deadline.