Civil suits

Suit for recovery of money format

Drafting a suit for recovery of money in India: computing the claim and interest, the three-year limitation, acknowledgement under Section 18 of the Limitation Act, court fee and the summary suit alternative.

A suit for recovery of money is a civil suit to recover an ascertained sum due under a contract, loan, invoice or dishonoured instrument. Limitation is ordinarily three years under the Limitation Act, 1963, running from the date the money became due, and it is extended by a written acknowledgement of liability signed before the period expires under Section 18, or by part payment under Section 19. Ad valorem court fee is payable on the amount claimed including interest up to the date of suit. Where the claim rests on a written contract or negotiable instrument, a summary suit under Order XXXVII CPC is usually faster.

Governed by
  • Code of Civil Procedure, 1908, including Order VII and Order XXXVII
  • Limitation Act, 1963, including Sections 18 and 19
  • Indian Contract Act, 1872
  • Interest Act, 1978
Where it is filed
The civil court of the lowest grade competent by pecuniary jurisdiction, where the defendant resides or carries on business or where the cause of action arose.
Who files it
The creditor or the person to whom the money is due.
Time limit
Three years from the date the money became due, under the Limitation Act, 1963. A written and signed acknowledgement before expiry gives a fresh period under Section 18, and part payment has the same effect under Section 19.
Court fee and stamp
Ad valorem on the principal plus interest claimed up to the date of the suit, under the State's court fees legislation.

What a suit for recovery of money must contain

The parts below are the structure of the document in filing order. The operative wording is a matter for the drafting advocate and for the practice of the court concerned.

  1. 1.Cause title and parties

    Court, plaintiff and defendant with addresses and the capacity in which each sues or is sued.

  2. 2.The transaction

    The loan, supply, service or instrument giving rise to the debt, with dates, amounts and the documents evidencing it.

  3. 3.Statement of account

    A schedule showing the principal, payments received and appropriated, the balance, and the interest computed at the agreed or claimed rate.

  4. 4.Demand and default

    The demand made, including any legal notice, and the failure to pay.

  5. 5.Limitation

    The date the money fell due and any acknowledgement or part payment relied on, with its date and document.

  6. 6.Jurisdiction, valuation and court fee

    Territorial and pecuniary jurisdiction, the value of the suit and the fee paid.

  7. 7.Relief

    The principal sum, interest pendente lite and future interest, and costs.

Mistakes that get this document returned

  • Claiming interest at a rate not agreed in writing and not justified under the Interest Act, 1978.
  • Not pleading the acknowledgement relied on to save limitation, or relying on an unsigned or post-expiry acknowledgement.
  • Filing an ordinary suit where Order XXXVII CPC was available and faster.
  • A statement of account that does not reconcile with the ledger later produced in evidence.

Frequently asked questions

What is the limitation period for a money recovery suit in India?

Ordinarily three years from the date on which the money became due, under the Limitation Act, 1963. A written acknowledgement of liability signed before the period expires starts a fresh three-year period under Section 18.

What is a summary suit under Order XXXVII CPC?

A summary procedure for claims on bills of exchange, hundis, promissory notes and written contracts for a liquidated demand, in which the defendant must obtain leave to defend. It is generally faster than an ordinary suit.

Can a cheque bounce case and a recovery suit run together?

Yes. The prosecution under Section 138 of the NI Act and a civil suit for recovery of the same amount can proceed simultaneously, though the court will take any amount realised in one proceeding into account in the other.

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Last reviewed 30 August 2026. This guide is general information about court procedure for advocates. It is not legal advice and does not replace the rules of practice of the court you are filing in.