Legal Question in Credit and Debt Law in India

05.10.2015

Dear Sir / Madam,

Yes, you may proceed legally against those clients who are not paying you., I suggest you first lodge an First Information Report (FIR) against those defaulters in the local Police station and issue those defaulters a final reminder to pay up and settle your dues, clearly informing them that you have lodged a Police complaint against them.

Regards,

Dear Sir

You can recover any dues, if they are within a period of LIMITATION, by filing a Money Suit, of if you qualify then a SUMMARY SUIT against the defaulters.

This basically being a Civil Nature dispute, criminal prosecution is not maintainable. However, as a pressure tactic you can file crime proceedings in local police station by registering FIR, or by filing a private compliant u/s 200 Cr.P.C. Normally, police do not register FIR in such kind of cases, which are basically civil in nature, which includes such money recovery suits.

You can file a Civil Suit against each borrower, individual, or such debt arises out of some common transaction, then collectively against each defaulter. You have to pay court on such Civil Suit, which will be valued based on the recovery amount.

Should you have any questions, then feel free to ask

Regards

Vivek N Mapara

vnmlaws.com