Legal notice for recovery of friendly loan is a formal intimation between two people warning the other before legal action is initiated to get their due payment. Believe it or not, you can also send a legal notice for recovery of money from a friend, in case he/she owes you a lot. To recover money from people who owe it to you, the role and importance of a legal notice for recovery of dues become important. Legal notice for refund of money can be filed for anyone from a dealer to an employee, tenant, friend, company, bank, etc.
One may send a notice for recovery of a friendly loan from your friend or any other party who owes you money. The first step in recovery should be to send a legal notice since most recovery cases get resolved in this step itself and you do not need to proceed to Court. One must send a well-drafted and legally sound notice to ensure that you get a prompt response on your notice and you have maximum opportunity to recover your money.
The legal notice for recovery of friendly loan must contain
The legal notice must be drafted in the letterhead of an advocate which is to be specific and proper.
It should contain addresses and contact details of the advocate.
The date on which the legal notice is issued including the name, address, and contact details of the person to whom the legal notice is issued is to be stated.
Since the legal notice for recovery of money is going from the client’s end, the name and details of the client should be mentioned.
It should be made clear in the notice as to how your right has been infringed due to the act or omission by the opposite party and for that what you want from him. A specific direction must be given to the opposite party along with a time limit.
The notice must be signed (with date) by the advocate and the sender.
Legal Notice
Ref. No……………. Dated ____, __________
REGD.A.D.
LEGAL NOTICE
To,
_____________
Dear Sir,
Pursuant to the instructions from and on behalf of my client ___________________, through its _____________, I do hereby serve you with the following Legal Notice: -
1- That my client is a ___________ firm/individual under the name and style of M/s ______________________.
2- That my client is engaged in the business of __________ of the ___ etc.
3- That against your valid and confirmed order my client did your job work from time to time on credit basis as you have running credit account in the account books of my client operated in due course of business.
4- That my client-raised bills of each and every work performed for payment, although you have acknowledged the receipt of such bills raised by my client.
5- That inspite of acknowledging the liability of payment of principal balance of Rs. _________/- you have been miserably failed to make payment of the said amount due to my client from you deliberately with malafide intent, hence you are liable to pay the said principal balance amount of Rs. __________/- alongwith interest @ __% p.a. from the date of due till actual realization of the said sum as is generally and customarily prevailing in the trade usages, which comes to Rs. __________/-
6- That thus you are liable to pay the total amount of Rs. ________/- to my above named client and my above named client is entitled to recover the same from you.
7- That my client requested you several times through telephonic message and by sending personal messenger to your office for release of the said outstanding payment, but you have always been dilly delaying the same on one pretext or the other and so far have not paid even a single paisa out of the said outstanding undisputed amount.
I, therefore, through this Notice finally call upon you to pay to my client Rs. __________/-. along with future interest @ __ % p.a. from the date of notice till actual realization of the said amount, together with notice fee of Rs. ____/- to my client either in cash or by demand draft or Cheque which ever mode suits you better, within clear 30 days from the date of receipt of this notice, failing which my client has given me clear instructions to file civil as well as criminal lawsuit for recovery and other Miscellaneous proceedings against you in the competent court of law and in that event you shall be fully responsible for the same.
A copy of this Notice has been preserved in my office for record and future course of action.
(____________)
ADVOCATE
The following documents must be scrutinized while drafting a legal notice for recovery of friendly loan:
Affidavit of proof of money lent/owed to you
The agreement that states the amount that your friend is to give you
Any proof of money owed to you
No set procedure is applicable in the making of a legal notice for recovery of friendly loan. However, a legal notice must be drafted and signed by a lawyer, with all the necessary details/contents as mentioned above. Once the notice is drafted it should be examined by the lender. It should then be sent to the defendant. If no action is taken or no repayment is done within the number of days mentioned upon the notice, a recovery suit against the defendant can be filed in the court having jurisdiction.
There is a limitation period of 3 years within which you must send the notice and file the recovery suit, if any, for the recovery of friendly loan owed to you. However, if there is an acknowledgment of the debt owed to you, then the limitation period will restart. The legal notice serves the purpose of giving a reasonable time to the person who owes you money to make a payment. The notice also acts as valid proof before a Court of Law that a certain amount is owed to you.
Since, a legal notice is the first step towards recovery litigation, it is highly recommended that you hire a recovery lawyer. A lawyer has the requisite expertise and knowledge to draft such legal notices. He/she will be able to accumulate important information for the client and draft the notice accordingly. He/she will ensure that you are on the right path in attaining justice. A lawyer can manage all legal paperwork effectively. Therefore, hiring an expert recovery lawyer is of prime importance in order to ensure that your legal notice for recovery is sent correctly, keeping in mind the possible litigation that may ensue.
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