---
title: "Money recovery suits in Chennai · Vakyl Rahman"
description: "The summary suit that gets you a decree without a full trial, the three-year limitation period and the written acknowledgement that resets it, and why a decree is only half the job."
url: https://vakyl.in/practice/money-recovery/
---

# Money recovery suits in Chennai

In short

Money lent and not returned is recovered by a civil suit. Where the claim rests on a **written contract, a promissory note or a cheque**, it can be filed as a **summary suit under Order XXXVII of the Code of Civil Procedure** — and that is a very different thing from an ordinary suit: the defendant cannot defend as of right, but must **apply for leave to defend** within ten days of service, and if he does not, you are entitled to a decree. Limitation is **three years** from when the money became due. The one thing that resets that clock is a **signed acknowledgement in writing before it expires** — under section 18 of the Limitation Act a fresh three years then runs from the acknowledgement. A part-payment recorded in the lender's handwriting will not do; it must be signed by the borrower.

## Does this apply to you?

You lent money to a friend, a relative or a business and it has not come back. A cheque was given and bounced. Goods were supplied or work done and the invoice is unpaid. A hand loan was given on trust with nothing signed at all — which is harder, but not hopeless.

## What does the law say?

| Provision | Law | What it means for you |
| --- | --- | --- |
| Order XXXVII, CPC | The summary suit | Applies to suits on bills of exchange, hundis and promissory notes, and to suits for a **liquidated demand in money** arising on a written contract, an enactment, or a guarantee. The defendant must apply for leave to defend within ten days of service of the summons for judgment; absent that, the plaintiff is entitled to a decree. |
| Article 19, Limitation Act 1963 | Three years, from when the loan fell due | For money payable for money lent, time runs from when the loan is made — or, where a due date was fixed, from that date. Related articles cover goods sold and services rendered, but three years is the working answer for nearly all of these claims. |
| Section 18, Limitation Act 1963 | The acknowledgement that resets the clock | An acknowledgement of liability **in writing, signed by the party, and made before the period expires** starts a fresh period from the date of the acknowledgement. It need not admit an exact figure, and it need not promise to pay — but it must be signed, and it must be in time. A WhatsApp message can qualify; the practical fight is over proving it. |
| Section 34, CPC | Interest | The court may award interest on the principal from the date of suit to the date of decree, and further interest from decree to payment. Where the contract fixes a rate, that rate generally governs the period before suit. |
| Section 138, Negotiable Instruments Act 1881 | The separate cheque track | A dishonoured cheque also gives rise to a distinct **criminal** complaint, subject to strict timelines — notice within thirty days of the bank memo, complaint within thirty days of the notice period expiring. It is mentioned here so the deadline is not missed; it is a different proceeding from this suit, and the civil claim survives independently of it. |

## What happens, stage by stage?

1. **Work out what you can actually prove** A promissory note, a written agreement, a cheque, bank transfers, messages acknowledging the debt. Cash handed over with nothing in writing is the hardest case and turns on surrounding evidence.
2. **Check limitation before anything else** Three years from when the money fell due. If the period has run, look for a signed acknowledgement or a part payment within it — that is the only thing that saves the claim, and it must be found before filing.
3. **Legal notice** A demand for payment within a stated time. It frequently produces payment or a written admission, and either is useful. Where a cheque has bounced, a notice is a statutory requirement on that separate track.
4. **Choose the route: summary or ordinary** If the claim is on a written contract, note or cheque for a fixed sum, Order XXXVII is usually far faster. If it rests on an oral loan, it must be an ordinary suit.
5. **Filing, and the ten-day clock** In a summary suit the defendant enters appearance, and then has ten days from service of the summons for judgment to apply for leave to defend. Failing that, the plaintiff is entitled to judgment.
6. **Leave to defend** The court may grant leave unconditionally, or on condition of depositing the amount claimed. A defence that is plausible but improbable typically gets conditional leave — which is often when the matter settles.
7. **Decree — and then execution** A decree is a piece of paper until it is executed. Attachment of bank accounts or property, or garnishee proceedings against someone who owes the debtor money, is where the money actually comes from.

## What documents do you need?

- The promissory note, loan agreement or written contract
- Cheques, and the bank's return memo if one was dishonoured
- Bank statements showing the money going out, and anything coming back
- Messages, emails or letters where the debt is admitted — these can be gold
- Invoices, delivery notes or work records, in a business claim
- Any signed acknowledgement of the debt, and its date
- Legal notice and proof of service

## How much does it cost, and how long does it take?

|  |  |
| --- | --- |
| Court fee | Ad valorem on the sum claimed |
| Limitation | 3 years from when due |
| Summary suit | Months, if leave is refused |
| Ordinary suit | ~2–4 years |

## Questions people ask

### What makes a summary suit worth using?

The defendant has no right to defend. He must persuade the court to let him, within ten days, and if his defence looks plausible-but-improbable the court can require him to deposit the money as the price of defending. A great many of these matters settle at exactly that moment, which is the real value of the procedure.

### Can a WhatsApp message count as an acknowledgement of the debt?

It can. Section 18 requires a signed writing, and electronic records with attribution have been accepted. The practical questions are proof — the device, the number, and whether the message admits liability rather than merely discussing the relationship. Preserve the original device and take a certificate for the electronic record before anything is deleted.

### How much will the court fee be?

It is ad valorem — a percentage of the sum claimed — so a large claim carries a large filing cost. That figure, and the debtor's ability to actually pay, are two things worth knowing before deciding to sue rather than after.

### The cheque bounced. Should I file the criminal complaint or the civil suit?

They are separate and both may be available. The section 138 route has short, unforgiving deadlines — thirty days to send notice from the bank memo, then a further window to complain — so the clock on it should be checked immediately. This guide is about the civil recovery suit; the two do not exclude each other.

### The borrower has no money. Is there any point?

Often, no — and that is worth saying plainly before a court fee is paid. A decree against someone with no attachable assets recovers nothing. Where there is property, a salary, or a business with receivables, the picture is quite different. This is a question to settle at the outset.

### The loan was three and a half years ago. Is it finished?

Not necessarily. Look for anything signed by him within the three years admitting the debt — a letter, a message, an endorsement on the note, a signed part-payment record. If there is, a fresh three years ran from that date. If there is nothing, the claim is likely barred, and being told so early saves a great deal.

## Which court hears it?

Value decides the court, and so does where the defendant lives or where the cause of action arose. In Chennai, up to ten lakh rupees the suit goes before an Assistant Judge of the City Civil Court; above that and up to one crore, before the Principal or an Additional Judge; above one crore, to the original side of the Madras High Court. Small money claims may also lie before the Court of Small Causes. Where the amount is modest, the court fee and the years involved deserve an honest look before filing at all.

Court pages: [Madras High Court](https://vakyl.in/courts/madras-high-court/) · [City Civil Court, Chennai](https://vakyl.in/courts/city-civil-court-chennai/) · [Court of Small Causes, Chennai](https://vakyl.in/courts/court-of-small-causes-chennai/)

## What do people get wrong?

Commonly believedI have a signed promissory note, so recovering the money is straightforward.

In factIt is a strong start — it opens the summary-suit route and shifts the practical burden. But the borrower can still raise want of consideration, or dispute the signature, and a note more than three years old with no acknowledgement is **time-barred whatever it says**. The document does not defeat limitation.

Commonly believedHe paid a small amount last year, so the three years starts again.

In factOnly if the part payment is **recorded in the handwriting of, or in a writing signed by, the person paying**. A credit appearing in your own bank statement, with nothing from him, generally does not extend limitation. This catches out more lenders than any other rule in this area.

Commonly believedI won the case, so I will get my money.

In factA decree is an entitlement, not a payment. Recovery happens in **execution** — attaching bank accounts, salary or property, or garnishee proceedings against a third party who owes the debtor. Execution can take as long as the suit, which is why the debtor's assets are worth investigating before you spend money suing.

Commonly believedIt was a cash loan between friends with nothing written, so there is no case.

In factHarder, not hopeless. Bank withdrawals timed to the loan, messages discussing repayment, witnesses to the handing over, and the borrower's own conduct can together make out a case. What it cannot be is a summary suit — an oral loan has to go the ordinary route, with evidence.

## Where this comes from

- [Code of Civil Procedure, 1908 — Order XXXVII, s.34](https://www.indiacode.nic.in/bitstream/123456789/2191/1/A190805.pdf)
- [Limitation Act, 1963 — Articles 19, 22; s.18](https://www.indiacode.nic.in/bitstream/123456789/1565/1/196336.pdf)
- [Negotiable Instruments Act, 1881 — ss.138–142](https://www.indiacode.nic.in/bitstream/123456789/2189/1/AAA188126.pdf)
- Tamil Nadu Court-Fees and Suits Valuation Act, 1955

Law stated as at 15 August 2026. General information, not advice on your facts.

**Reviewed by Advocate Abdul Rahman Usman** Bar Council of Tamil Nadu & Puducherry · Updated 15 August 2026

## Where these matters are heard

This guide applies to matters heard in Chennai. Which court hears yours depends on where the property, the marriage or the FIR is.

[Chennai](https://vakyl.in/areas/chennai/)

Limitation and the debtor's ability to pay decide whether this suit is worth filing, and both can be checked quickly. If your situation needs advice specific to your facts, a paid consultation is available.

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