When it becomes a hard task for you to get your own money back from someone, the legal course of action comes to rescue. By sending a legal notice for recovery of money, you give a formal warning to the person who owes you money to repay, or else a legal process will take place. The legal notice is generally issued by an advocate on behalf of his/her client for the purpose of soliciting a settlement. A Legal notice is always considered to be a guard before filing of suit. Sometimes you even not have to file a suit just because the Legal Notice gives the debtor a formal warning and the money can be recovered very easily. The notice constitutes a specific time period within which the debtor is supposed to release the payment to the sender. After failing to get any response within the stipulated period mentioned in the said legal notice, its sender can file the suit. However, the suit will not be rejected on the ground that no legal notice was sent prior to filing the suit.
Benefits of sending a Legal Notice;
A person can easily describe his grievance in a legal notice with the help of an Advocate.
Serving of legal notice gives an opportunity to the receiver of the legal notice, that is, the opposite party to resolve the issue cordially.
It acts as a reminder for the receiver of the legal notice about the acts that have intentionally or unintentionally have created a problem for the sender.
Legal notice under various statutes for recovery
Legal Notice under Section 138 of The Negotiable Instrument Act, 1881
In the case of a cheque bounce, it is mandatory to send a legal notice to the issuer of cheque within a time frame of 30 days from the date of cheque bounce. If no repayment of money is received after 15 days of the delivery of the legal notice, then you can initiate a legal action within 30 days from the date of completion of 15 days time period.
Criminal liability is also established under this section wherein the drawer of the dishonored cheque may get a sentence of 2 years jail term or fine or both.
In the notice, you have to provide details of the transaction for which the cheque was issued, details of the cheque, details of dishonor, etc. through a lawyer.
Notice to be signed by both lawyer and payee.
Notice to be sent through registered post.
Legal Notice under section 8 of the Insolvency and the Bankruptcy Code.
An operational Creditor may, on the occurance of a default, deliver a demand notice of unpaid operational debtor copy of an invoice demanding payment of the amount involved in the default to the corporate debtor in such form and manner as may be prescribed.
What is meant by Demand Notice?
Demand Notice means a notice served by the operational creditor to the corporate debtor demanding repayment of the operational debt in respect of which the default has occurred.