Glossary

What is a civil recovery suit (suit for recovery of money)?

A civil recovery suit is the general-purpose court action to recover money owed. It handles any claim, however complicated, but it takes time, so it is the route of last choice when a summary suit, Samadhaan, Section 138 or arbitration is unavailable.

1,000+
businesses onboarded
₹50 Cr+
invoice value handled
700+
businesses got their money back
60%
of cases settled before court
Short answer

A civil recovery suit is a suit for recovery of money filed under the Code of Civil Procedure, 1908 before the civil court (or Commercial Court for commercial disputes of ₹3 lakh and above) with jurisdiction over the defendant or the place where the cause of action arose. The plaintiff files a plaint with documents, pays ad valorem court fee, the defendant files a written statement, issues are framed, evidence is recorded and the court passes a decree, which is then executed.

How a civil recovery suit works in India

StageWhat happens
Plaint and documentsClaim, cause of action, interest, court fee paid; documents listed and filed
Summons and written statementDefendant served; files defence within the permitted time
Framing of issuesCourt identifies what is disputed
EvidenceAffidavits in lieu of examination-in-chief, cross-examination of witnesses
Arguments and judgmentDecree for principal, interest (pre-suit, pendente lite, future) and costs
ExecutionSeparate proceeding under Order XXI if the judgment debtor does not pay

For commercial disputes above the specified value, the Commercial Courts Act layers on mandatory pre-institution mediation, case management hearings, strict timelines and summary judgment under Order XIII-A.

Why it matters for getting paid

A regular suit is needed when the claim is not a liquidated sum on a written contract (for example damages, or disputed quantities), when the supplier is not an MSME and holds no cheque, or when the summary suit route is unavailable in that court. It is also the fallback when leave to defend is granted in a summary suit. Understanding the time and court fee involved helps a supplier decide whether to settle at a discount instead. See decree and execution.

How FundRaksha uses it

FundRaksha's advocates file ordinary suits only where no faster forum fits, and tell the client the court fee and likely timeline before filing. The company's record of 60% of cases settling before court reflects a preference for notice, negotiation and the quicker statutory routes. FundRaksha's fee is 30% of recovery; court fees are the client's and disclosed upfront.

Worked example (hypothetical)

A Kochi marine-equipment supplier claims ₹25,00,000 from a shipyard: ₹18,00,000 on invoices and ₹7,00,000 as damages for cancelled orders. Damages are unliquidated, so the whole claim cannot go in a summary suit. The advocate splits them: a summary suit for ₹18,00,000 on the accepted invoices, and a regular commercial suit for the ₹7,00,000 damages claim. Assuming a court fee of about 1% of the claim in that state (rates vary and are capped), the fees are roughly ₹18,000 and ₹7,000. The invoice claim is decreed within a year on conditional leave; the damages claim proceeds to trial.

Last reviewed: 2026-10-08. Information for Indian businesses; not legal advice.

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Free consultation and case assessment

मुफ़्त सलाह, कोई शुल्क नहीं

Talk to a FundRaksha recovery expert for free. In one call we assess your unpaid invoices and tell you honestly what can be recovered, how, and in roughly how long. No fee for the call, no obligation, and no upfront cost if you go ahead: our fee is a percentage of what we actually recover.

  • A review of your invoices, purchase orders, delivery proof and the buyer’s replies
  • An honest assessment of recovery chances and the right route: reminders, legal notice, MSME Samadhaan, Section 138 or a civil suit
  • A realistic timeline and the exact cost: nothing upfront, a success fee only on recovery
  • A dedicated advocate assigned within 24 hours if you decide to proceed
Keep these ready
  • The unpaid invoice(s) and payment terms
  • Purchase order, delivery challan, e-way bill or proof of service
  • Messages, emails or letters about the payment
  • For a bounced cheque: the cheque and the bank return memo

No recovery, no fee. Court fees, if any, are borne by the client and told upfront.

FAQ

Questions, answered

Under Section 20 CPC, where the defendant resides or carries on business, or where the cause of action arose in whole or part. Many suppliers can sue where the goods were delivered or where payment was to be made, subject to the facts and any contract clause.

This page is general information for Indian businesses, not legal advice for your specific case. Laws, rates and procedures change; speak to an advocate before acting. FundRaksha LegalTech Pvt Ltd is a technology company; legal work is carried out by enrolled advocates.