In one sentence
A suit for recovery of money in India is brought as a summary suit under Order 37 of the Code of Civil Procedure for a liquidated sum on written instruments, as an ordinary civil suit where the facts are disputed, or as a commercial suit above the specified value.
Key takeaways
- A summary suit under Order 37 of the Code of Civil Procedure is the fast civil route for a liquidated sum on written instruments: the debtor must obtain leave to defend.
- An ordinary civil suit is the fallback where the claim is disputed on the facts; it is slower and the outcome depends on evidence.
- Commercial disputes above the specified value go to the commercial courts, with pre-institution mediation usually mandatory.
- Attachment before judgment protects the recovery where a debtor may move assets — apply for it early, with evidence.
Which suit
A recovery suit under the CPC for unpaid business dues can be brought three ways in the civil courts, and the choice decides how long it takes.
Summary suit — Order 37, Code of Civil Procedure (leave to defend)
For claims based on bills of exchange, promissory notes, or written contracts and instruments for a liquidated sum. The defendant does not get to file a defence as of right; they must apply for leave to defend and show a substantial, genuine defence. If they cannot, judgment follows. Leave to defend in a summary suit may be granted unconditionally, conditionally — on deposit of the sum claimed or part of it — or refused; the conditional grant is itself a lever, because a debtor ordered to deposit the claim usually settles. For a clean claim — invoices against a written contract, an acknowledged statement of account — this is the route, and it is materially faster than an ordinary suit.
Ordinary civil suit for recovery of money
Where the claim is disputed on the facts — quality, quantity, the rate, whether goods were delivered — the matter proceeds as an ordinary suit: pleadings, evidence, arguments, judgment. It is the slowest route and the one where documentation decides everything. A supplier with delivery proof, signed acknowledgements and clean dispute correspondence is in a different position from one relying on memory.
Commercial suit — Commercial Courts Act
Commercial disputes above the specified value are heard by commercial courts or the commercial division of the High Court, on a timetable that is meant to be tighter than ordinary civil procedure. Pre-institution mediation is usually mandatory unless urgent interim relief is sought — and the mediation itself frequently produces the settlement.
Attachment before judgment
Where there is reason to believe the debtor will dispose of or remove assets to defeat the decree, the court can be asked to attach assets before the case is decided. It requires evidence of the risk, not suspicion, and it is applied for at the start. Where it is granted, it changes the negotiation: the debtor's assets are no longer available to be moved, and settlement usually follows.
Cost and time, honestly
Court fees are set by the state and scale with the claim. Advocate fees depend on the forum and the counsel. Time depends on the court's calendar and on whether the debtor contests. A summary suit on a clean claim can be a matter of months; a contested ordinary suit can run years. Enforcement of a decree — execution against assets — is a further process. This is why the assessment before filing matters, and why settlement stays open in parallel throughout: a good settlement in weeks is usually worth more than a full decree in years.
Before you file
Check the limitation period — generally three years for money due on account, extended by written acknowledgement or part-payment. Check the debtor still exists and has assets. Check the forum and the pecuniary jurisdiction. Check whether the contract has an arbitration clause, which would send the dispute to arbitration instead. And decide whether a Section 9 petition under the Insolvency and Bankruptcy Code — a different route with different weight — fits the case better. Kenstone Capital's assessment does all of this before recommending a route; see Enforce.
If you are outside India
A foreign supplier owed by an Indian company has the same remedies as a domestic creditor, and needs a partner on the ground to run them. How collection and enforcement work for international suppliers — timelines, the Section 9 lever, foreign judgments and awards — is on Debt collection in India for international suppliers.
Sources and regulation
| Instrument | What it does | Source |
|---|---|---|
| Code of Civil Procedure, 1908 — Order 37 | Summary procedure for suits on negotiable instruments and written contracts for liquidated sums | indiacode.nic.in |
| Code of Civil Procedure, 1908 — Order 38, Rule 5 | Attachment before judgment | indiacode.nic.in |
| Commercial Courts Act, 2015 — Sections 2(1)(c), 12A | Commercial disputes; specified value; pre-institution mediation | indiacode.nic.in |
| Limitation Act, 1963 — Articles 14–15, Section 18 | Limitation for money claims; extension by acknowledgement | indiacode.nic.in |
| Court Fees Act (state enactments) | Court fees scale with the claim and vary by state | state gazettes |
Thresholds, limitation periods and procedures change. This guide describes the position as generally understood at the time of writing and is not legal advice; confirm the current rule before acting.
If this is your situation: the notice window has closed and the case has to be assessed for the right route.
How enforcement works