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Writer's picturelead india
Sep 7, 20233 min read

What Is A Warning Notice For The Recovery Of Money?

This is the era of entrepreneurship and start-up firms, which is propelling the country's rising economy toward financial independence. According to the IBM Institute for Business Value and Oxford Economics, more than 90% of financed businesses fail during the first five years of operation due to negative cash inflow, i.e. problems with money recovery. In most situations, people fail to collect a large sum of money from creditors owing to a lack of strong legal assistance and sensible legal consultants, resulting in the closure of firms or other financial instabilities.


  • The legal notification must be written on the letterhead of an advocate and must be detailed and appropriate.

  • It should include the advocate's address and contact information.

  • The date on which the legal notice is issued, as well as the person's name, address, and contact information, must be specified.

  • Because the legal notification for money recovery is being sent from the client's end, the client's name and contact information should be included.

  • It should be made clear in the notice how your rights have been violated as a result of the opposing party's act or omission and what you expect from him. A particular instruction, as well as a time restriction, must be given to the opposing side.

  • The advocate and the sender must sign (and date) the notification.

When and why does the situation of money recovery court notice arise?

  • Tenant: When renters fail to pay their rent to the landlord, a large sum accumulates that the landowner is entitled to receive. If the commencement of the tenancy including the signing of a lease and licensing agreement, the landowner has the right to submit a legal notice to recover overdue dues. The landowner can also recover the rent by initiating a claim for particular non-performance under the particular Relief Act of 1963 and the Indian Contract Act of 1872.

  • Employee: If an employee flees with the money, a domestic investigation will be launched, with a show-cause notice sent to the employee's home address. Even after receiving two or three such letters, if the employee does not answer, disciplinary action will be taken against him/her by the organization's Standing Orders or Service Regulations. This is done to provide the employee an opportunity to defend himself/herself against the accusation of fleeing. You can proceed with sending a legal notice to an employee for money recovery if it is proven that he/she has left your organization.

  • Employer/Company: If an employer deprives his employees of their rightful wage, numerous measures are available, such as issuing a legal notice for salary recovery. If the employee is covered by labor laws, he or she can file a complaint with the Labour Commissioner or sue the employer under the Payment of Wages Act of 1936 and the Industrial Disputes Act of 1947. If the employee is of the position of executive or manager and does not fall within the jurisdiction of the Labour laws, he or she might seek redress for money recovery under Order 37 of The Code of Civil Procedure, 1908, often known as a Summary Suit.

If the employer used deceptive techniques to deprive the employees of their wages, they can seek redress under several provisions of the Indian Penal Code, 1860, and Section 447 of the Companies Act, 2013. Before initiating any of the above-mentioned legal actions, anybody seeking money recovery should send a legal notice to an employer for money recovery written by a smart and discreet lawyer. A powerful and effective legal notice can sometimes result in the recovery of money, saving a lot of effort and expense. Anyone can begin the procedure by sending a legal notice for money recovery from a firm, which can be accepted or denied with a response.


If you want to send legal notice by advocate, you can contact Lead India. Lead India offers online information, free legal advice, and guidance with the law. If you call Lila, you will be able to talk to a lawyer directly. Ask a legal question for advice.


Call Us: +91–8800788535

Email: Care@Leadindia.Law



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