Debt Recovery Services

Debt Recovery Services


Debt can make or break financials for any corporate. To ensure liquidity and floatation, any organisation must have regimen at place which will ensure that their debts are realized and that they do not turn bad. For debt recovery, organisation can deploy several methods depending upon the nature of the debt, such as:

  • If the debt is securitised and issued by a notified banking/financial institution, then debt recovery can be ensued as per Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act (SARFAESI) 2002 before a Debt Recovery Tribunal (DRT).
  • If debt is non-securitised and issued by a notified banking/financial institution, then debt recovery can be ensued through The Recovery of Debts Due to Banks and Financial Institutions Act (RDDBFI), 1993 before Hon’ble Debt Recovery Tribunal (DRT).
  • If it is debt secured by a Negotiable Instrument such as a Cheque, then upon the dishonor of such Cheque, debt recovery can be ensued as per The Negotiable Instruments Act, 1881.
  • If it is dishonor of any electronic transfer, in such cases recovery can be ensued as per The Payment and Settlement Systems Act, 2007.
  • If it is a simpliciter and an ascertained Debt, then debt can be recovered as per Order XXXVII of Code of Civil Procedure, 1908 (Summary Suit).
  • If it is simpliciter and an unascertained Debt, then debt can be recovered as simpliciter Suit for recovery.

LexOracle consists of dedicated team of experienced Debt Recovery lawyers. Our Debt Recovery is efficient, targeted and we help in ensuring the liquidity and quicker debt turnover of our clients. Based on our vast experience and acquired skills, we help in identifying the best mode of Debt Recovery for monies payable and ensure that our clients have confidence in trading, extending credit to suppliers / buyers, ramp up their revenue, reduce recovery risk and thus, grow and expand their businesses.

Cheque Bounce


Introduction of cheques in the market has given a new dimension to the commercial and corporate world, its time when people have preferred to carry and execute a small piece of paper called cheque than carrying the currency worth the value of the cheque. Dealings in cheques are vital and important not only for banking purposes but also for the commerce and industry and the economy of the country. But pursuant to the rise in dealings with cheques also rises the practice of giving cheques without any intention of honouring them. In most of the transactions be it re-payment of loan or payment of fees for business purpose, payments are made by cheque. These cheques bearing large amounts sometimes remain unpaid and are returned by the bank on which they are drawn. For such cases, punishment is provided by Section 138 of the Negotiable Instruments Act, 1881. The offence of dishonour of cheque as mentioned under Section 138 of the Act is considered as a criminal offence.

Thus, if you are in the discharge of any such form of a legal liability issue where your cheque is dishonoured by a banker abreast with Section 138 of the Negotiable Instruments Act, 1881 then a person doing such malpractices are definitely liable for punishment that can obviously be imprisonment for a term that can be extended for 2 years or may also be punished to pay a fine that may be extended to the twice the amount of the cheque, or sometimes both.

Under the Complaint being filed and the requisite court fees being deposited with the court, the original documents such as the original cheque, a copy of the notice and acknowledgement receipt are to be verified by the Judicial Magistrate First Class. The complainant would have to appear in court and be examined by the Magistrate. The Magistrate would issue a summons for the issuer of the cheque to appear before the Court and if found guilty then the issuer would be punished with imprisonment or fine under Section 138 of the Negotiable Instruments Act. In addition to pursuing remedies through this method as well as the civil proceedings as demonstrated below, the recipient of such a cheque can also file a complaint about cheating under Section 420 of the Indian Penal Code.

There is also an alternate remedy available to get the money back which is filing a summary suit under Order 37 of the Code of Civil Procedure, 1908. A summary suit differs from an ordinary civil suit in as much as it does not grant the defendant with a right to defend himself and to be able to defend himself, the defendant has to seek prior permission of the court. Summary suits are only permissible in the context of matters of recovery. Thus, in matters of cheque bounce, a summary suit can be filed for the recovery of money.

Thus, if you have a Cheque issued by a debtor that has bounced or has been dishonoured, or someone has issued a cheque bounce notice against you, or you have received a court summons for a Section 138 Negotiable Instruments Act complaint against you, Then Don’t Worry. We have lawyers for cheque Bounce Lawyers in Delhi. We have Expertise in Handling Cheque Bounce cases efficiently.

For more information or query, please contact us.