Legal Notice for Recovery of Money (Outstanding Dues) Format

When to use this notice

Use this notice when a person or company owes you money — unpaid invoices, a friendly loan, advance not returned, or a defaulted account — and informal reminders have failed. Sending it before filing suit demonstrates a bona fide demand, may prompt settlement, and is expected in a summary suit for a debt or liquidated demand.

Statutory basis

A claim for money is founded on the contract or acknowledgment of debt under the Indian Contract Act, 1872. Recovery suits for money or liquidated demands are commonly filed as summary suits under Order XXXVII of the Code of Civil Procedure, 1908. Under the Limitation Act, 1963 (Article 1 / Article 55), most money-recovery claims must be filed within three years of the debt becoming due or the last acknowledgment of liability.

Replace every [placeholder] with your own details before use.

[ON THE LETTERHEAD OF THE ADVOCATE]

By Registered Post A/D & Email

Date: [DD/MM/YYYY]

To,
[Full Name / Company Name of Debtor]
[Complete Address]

Subject: Legal notice for recovery of Rs. [Amount] together with interest.

Sir/Madam,

Under instructions from my client, [Client Name], of [Client Address], I hereby serve upon you the following notice:

1. That you availed [goods supplied / services rendered / loan of Rs. Amount] from my client vide [invoice/agreement no.] dated [DD/MM/YYYY].

2. That a sum of Rs. [Amount] remains outstanding and payable by you to my client, despite repeated reminders dated [dates].

3. That you have failed and neglected to clear the said dues, causing loss to my client.

I therefore call upon you to pay the outstanding sum of Rs. [Amount] together with interest at [rate]% per annum within fifteen (15) days of receipt of this notice, failing which my client shall initiate appropriate civil proceedings, including a summary suit under Order XXXVII of the Code of Civil Procedure, 1908, for recovery of the said amount with interest and costs, entirely at your risk and expense.

[Advocate Name]
[Enrolment No. / Contact]

How to send this legal notice

1. Compile proof of the debt — invoices, agreement, ledger, acknowledgment, or loan record.
2. Verify the claim is within the three-year limitation period from the due date or last acknowledgment.
3. Draft the notice stating the amount due, source of the debt, interest claimed, and a 15-day payment window.
4. Have it issued on advocate letterhead and signed.
5. Serve it by Registered Post A/D and email, retaining the postal receipt and delivery proof.
6. If unpaid, file a civil or summary suit under Order XXXVII CPC within limitation.

Frequently asked questions