Streamlined DEBT RECOVERY · Legal Services

Streamlined DEBT RECOVERY · Legal Services

  • 💬 TAGLINE

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₹1,999/-

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Here's How It Works

Step 1

Consultation Requirement

Our team reaches out to understand your precise requirements.

Step 2

Drafting Review

We prepare all necessary paperwork specific to your legal needs.

Step 3

Filing

Filing and rigorous follow-up with the respective authorities.

What Our Clients Say

“Lawxygen provides top-tier support. Registration timelines were strictly followed with full transparency.”

Rahul Verma

Rahul Verma

Director, TechNexus

Here's What You'll Need

💬 TAGLINE

  • Document Name
  • Notes / Format
  • Document Name
  • Notes / Format
  • Loan Agreement or Invoice (Evidence of Debt)
  • The document establishing the debt - signed Loan Agreement, invoice, purchase order, or promissory note · PDF
  • Bank Statements Showing Non-Payment
  • Bank account statements showing the amount advanced and the non-receipt of repayment - confirming the default · PDF
  • Security Documents (for secured debt)
  • Mortgage deed, pledge agreement, hypothecation agreement, or personal guarantee - for secured lending recovery · PDF
  • Correspondence with Debtor
  • All communications with the debtor regarding the outstanding amount, payment reminders, and any acknowledgements of the debt

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Overview - debt recovery legal services Registration

What is it?

Debt recovery encompasses the legal processes available to creditors - banks, NBFCs, businesses, and individuals - to recover money owed to them by defaulting debtors. In India, debt recovery forums include: Civil Courts (money suits), Debt Recovery Tribunals (DRT) - for banks and NBFCs with debts above ₹20 lakh, Lok Adalat (for pre-litigation settlement), MSME Samadhaan (for MSME dues), and insolvency proceedings under the IBC (for corporate debtors).

Key debt recovery legislation

Recovery of Debts and Bankruptcy Act, 1993 (RDBA): Establishes Debt Recovery Tribunals and DRATs for banking sector debt recovery. SARFAESI Act, 2002: Allows banks and ARCs to enforce security interests (mortgage, pledge, hypothecation) without court intervention - most powerful bank recovery tool. Insolvency and Bankruptcy Code, 2016 (IBC): Operational creditors can file insolvency petitions for debts above ₹1 crore. MSME Samadhaan: Online dispute resolution for MSME suppliers' dues from large buyers.

Civil money suit

Any person owed money can file a civil money suit in the appropriate civil court. Summary procedure under Order XXXVII CPC (Summary Suit) is available for debts based on negotiable instruments (cheques, promissory notes) - providing a faster decree within months rather than years.

Pre-litigation demand and Lok Adalat

A formal legal demand notice before litigation resolves a significant proportion of debt disputes. Lok Adalat (under the Legal Services Authority Act) provides a fast, free forum for pre-litigation settlement - with the Lok Adalat award having the force of a civil court decree.

Benefits - Benefits of Company Registration Online Using Lawxygen

Who Usually Requires This?

The DEBT RECOVERY · Legal Services solution matches perfectly with these profiles:

  • Profile
  • Why It Applies
  • Profile
  • Why It Applies
  • Businesses with unpaid invoices from customers or clients
  • B2B suppliers with outstanding invoices - for goods supplied or services rendered - have multiple recovery options: legal demand, MSME Samadhaan (for MSMEs), civil money suit, or IBC operational creditor petition (for large amounts).
  • Banks and NBFCs seeking to recover loan defaults
  • Banks and NBFCs with defaulting borrowers have specialised remedies: SARFAESI enforcement (taking possession of secured assets), DRT proceedings for debts above ₹20 lakh, and IBC for corporate defaults above ₹1 crore.
  • Individuals who have lent money to friends, family, or business partners
  • Personal loans documented in Loan Agreements or by cheques (promissory notes) are recoverable through civil courts - and through Section 138 NI Act proceedings where dishonoured cheques are involved.
  • MSMEs with delayed payments from large buyers
  • MSMEs are entitled to interest at 3 times the bank rate on delayed payments from large buyers under the MSME Development Act 2006. MSME Samadhaan provides a specific, government-backed online platform for these disputes.
  • Landlords with tenants owing significant rent arrears
  • civil courts) alongside debt recovery for the unpaid rent.
  • ✅ WHY DO YOU NEED THIS
  • Key Benefit
  • Explanation
  • Key Benefit
  • Explanation
  • Multiple Forums - Choose the Fastest for Your Debt Type
  • Debt recovery is one area where choosing the right forum dramatically affects the time to recovery. DRT for banking debt, IBC for corporate debt, MSME Samadhaan for MSME dues, and civil courts for general debt all have different speeds, costs, and success rates.
  • IBC Section 9 - Operational Creditor Petition is a Powerful Tool
  • For commercial debts above ₹1 crore, an IBC Section 9 operational creditor petition compels the debtor company to either pay within 10 days or face insolvency proceedings. This creates enormous pressure for immediate payment or settlement.
  • SARFAESI Enforcement - Banks Can Recover Without Court
  • hypothecated assets without any court involvement - typically completing the recovery process within months.
  • Lok Adalat Awards Are Immediately Executable
  • A Lok Adalat settlement award is deemed a decree of a civil court - executable immediately against the debtor's assets without a separate execution proceeding. For debts where the debtor is willing to partially settle, Lok Adalat is the fastest route to a binding, executable settlement.
  • PROCESS
  • Step Name
  • What Happens
  • Timeline
  • Step 1
  • Debt Assessment and Strategy
  • We assess the nature of the debt, the debtor's profile (individual, MSME, or large corporation), the documentation available, and the best recovery forum - DRT, IBC, civil court, or MSME Samadhaan.
  • Step 2
  • Legal Demand Notice
  • We draft and send a formal demand notice - specifying the outstanding amount, interest, and the legal proceedings that will be initiated on non-payment.
  • Days 1–3
  • Step 3
  • Forum-Specific Filing
  • We file in the appropriate forum: DRT application, IBC Section 9 petition, civil money suit, or MSME Samadhaan complaint - with complete documentation and legal arguments.
  • Days 3–14
  • Step 4
  • Recovery and Execution
  • orders, attachment of debtor's assets, and auction of security (for secured creditors).
  • Ongoing

How It Works

Execution is straightforward. Hand over the details and relax.

Consultation Request

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Data Preparation

Our agents format the forms via robust checks.

Execution

Final approvals fetched from the regulating authorities.

Expected Additional Levies

  • Filing Fees to Government
  • E-Stamp Duties according to state norms
  • Processing Levies based on capital limits

Core Advantages to Remember

Avoid Penalties

Better Market Position

Standardized Documentation

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