Civil Money Recovery Suit (Alternate Remedy under NI Act Context)

Apart from criminal prosecution under Section 138 NI Act, a payee may file a civil suit for recovery of cheque amount under the Indian Contract Act and Limitation Act, 1963. Civil suits allow recovery of principal, interest, and costs, and can be pursued in parallel with criminal remedies. This note provides statutory guidance and a model plaint format.

Overview

• Civil remedy available: Payee can file a suit for recovery of money (contract/loan/debt).
• Limitation: 3 years from date of default (as per Limitation Act, 1963).
• Parallel remedies:
  • Filing a criminal complaint under Section 138 does not bar a civil suit.
  • Practitioners often pursue both simultaneously.
• Source: India Code

Practical Drafting Notes

• Carefully compute limitation (3 years from date of default).
• Plead cause of action, jurisdiction, and limitation explicitly.
• Always annex original contract, invoices, cheque copies, bank statements, and demand notice.
• Where applicable, consider filing as a summary suit (Order XXXVII CPC) to expedite proceedings.

Model — Plaint (Money Recovery) — Skeleton

IN THE COURT OF CIVIL JUDGE [__________]

Plaint No. __ of 20__

Plaintiff: [Name & Address]
Vs.
Defendant: [Name & Address]

PLAINT

1. The plaintiff avers that on [date] the defendant borrowed / owed Rs. ______ towards [contract/supply/loan]. The transaction is supported by [contract/invoices/delivery challans].

2. Despite repeated demands including on [date], the defendant has failed and neglected to pay the said amount.

3. The plaintiff claims:
   (a) Principal amount of Rs. ______;
   (b) Interest at ___% p.a. from [date] till realisation;
   (c) Costs of the present suit.

4. This Hon’ble Court has jurisdiction to entertain the suit, and the suit is filed within the prescribed limitation period.

PRAYER

(a) Pass a decree in favour of the plaintiff and against the defendant for recovery of Rs. ______ with interest at ___% p.a. from [date] till realisation;
(b) Award costs of the suit;
(c) Grant such other relief as this Hon’ble Court deems fit.

Place: ________
Date: ________

[Signature of Plaintiff / Authorised Representative]
[Verification]

Filing Tip

• Annexures to include:

  • Original contract/loan agreement/invoices.
  • Copy of dishonoured cheque(s).
  • Bank return memo.
  • Demand notice and postal/courier proof.
  • Bank statements or ledger entries.

• Optional route: If conditions apply, invoke summary suit procedure (Order XXXVII CPC) to fast-track recovery.