Essentials of a Recovery of Money Suit

Introduction

A recovery of money suit is a legal action initiated by a plaintiff to reclaim a sum of money owed by a defendant. The essentials of such a suit are governed by various legal principles and statutory provisions in India, particularly under the Code of Civil Procedure, 1908, and the Limitation Act, 1963.

Key Essentials

1. Cause of Action

• The plaintiff must establish a clear cause of action, which typically involves demonstrating that the defendant owes a specific sum of money due to a loan, contract, or other financial obligation. For instance, in the case of Ms. Rama Rani Devi, the suit was based on a claim for recovery of Rs. 3000 against Sasadhar Biswas Dipali Biswas VS Nirmalendu Mukherjee - Supreme Court.

2. Pleadings

• The plaint must clearly articulate the facts supporting the claim, including the amount owed, the basis for the claim (e.g., loan agreement, sale of goods), and any relevant agreements or receipts. The absence of a clear agreement can affect the applicability of limitation provisions Omji Dawai Wala VS Shri Deeraj Kumar - Rajasthan.

3. Limitation Period

• Recovery suits are subject to limitation periods as specified in the Limitation Act, 1963. For example:
  • Article 22: For money deposited under an agreement payable on demand, the limitation is three years from the date of demand.
  • Article 23: For money payable for money paid for the defendant, the limitation is three years from the date the money was paid Omji Dawai Wala VS Shri Deeraj Kumar - Rajasthan.

4. Jurisdiction

• The suit must be filed in the appropriate court that has jurisdiction over the matter. This is often determined by the amount in dispute and the location of the parties involved. For instance, suits involving amounts less than Rs. 25,000 may have specific procedural requirements under the Civil Procedure Code Anita Rani VS Ashok Kumar - Supreme Court.

5. Proof of Debt

• The plaintiff must provide evidence of the debt, such as contracts, receipts, or bank statements. If the defendant admits to receiving the money but claims it was a gift or gratuitous payment, the burden of proof shifts to the defendant to substantiate this claim Anita Rani VS Ashok Kumar - Supreme Court.

6. Interest on Amount Due

• The plaintiff may claim interest on the amount due, which must be specified in the plaint. The rate of interest and the period for which it is claimed should be clearly stated Unnikrishnan VS Prabhavathi Etc. Etc. - Supreme Court.

7. Defenses Available to the Defendant

• The defendant may raise various defenses, including:
  • Denial of the debt.
  • Claiming that the payment was made as a full and final settlement.
  • Arguing that the claim is time-barred under the Limitation Act Anita Rani VS Ashok Kumar - Supreme Court01700007627.

Conclusion

In summary, a recovery of money suit requires a well-structured plaint that establishes a clear cause of action, adheres to limitation periods, and provides sufficient evidence of the debt. The plaintiff must also be prepared to counter any defenses raised by the defendant. Legal practitioners should ensure compliance with procedural requirements and substantiate claims with appropriate documentation to enhance the likelihood of a favorable outcome.

Recommendations

• Ensure all relevant documents are collected and organized before filing the suit.
• Clearly articulate the basis for the claim and the amount sought in the plaint.
• Be prepared to address potential defenses and gather evidence to support the claim for interest and other recoverable amounts.

References: - Dipali Biswas VS Nirmalendu Mukherjee - Supreme Court - Shripati Lakhu Mane VS Member Secretary, Maharashtra Water Supply and Sewerage Board - Supreme Court - Omji Dawai Wala VS Shri Deeraj Kumar - Rajasthan - Anita Rani VS Ashok Kumar - Supreme Court - Unnikrishnan VS Prabhavathi Etc. Etc. - Supreme Court]