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Recovery Suit Summary Suit Debt Recovery Against Defaulters


10-Oct-2023 (In Breach of Contract Law)
Service was provided to a company who had offices in Delhi, UP, Kolkata, Chhattisgarh & USA at the time of Purchase Order issuance. However when company defaulted pmts of so many service providers, it closed Delhi & Kolkata office. Although work was executed at Delhi and service providers belonged to Delhi. Also, while issuing Purchase Order, defaulter company cunningly used Chhattisgarh Address on the letterpad. Now can complainant file recovery suit from any of the Delhi district courts ? Also what is the timeframe for filing a recovery suit post default (Is it calculated from the date of last invoice defaulted, or first invoice defaulted or PO issuance date or last written conversation between the two regarding pmt) ?
Answers (2)

Answer #1
505 votes
I have perused the contents of query and would advise you that a recovery suit can be filed where the defendant resides or Carries on business or cause of action arose. since the work was executed at Delhi it can be construed that part cause of action arose in Delhi and thus courts at delhi would have the competent jurisdiction to try and entertain the suit. For further consultancy and legal services you may contact us.
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Answer #2
622 votes
Yes the recovery suit can be filed from delhi if the po is issued in delhi at their delhi office. Limitation starts from the date of last invoice for which work has been done. If the directors are residing in delhi would definitely help you. Or if any document says that business took place in delhi
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