Legal Notice For Dues Recovery

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Legal Notice for Recovery of Money

The Notice for money recovery is a formal intimation between a person and another, warning the other of legal action if the latter fails to pay its due payment. To your surprise, you can send a legal notice to a friend to recover money from him if he owes you a lot. 

So to recover money from someone who owes the amount to you, the legal Notice for due recovery becomes essential. One can also file a Legal Notice for a refund of money against a dealer by an employee, tenant, friend, Company, bank, etc. You can also get a sample legal notice format document for the recovery of money payment attached with this web page.

Money Recovery: A Relevant Issue

Although in this age of entrepreneurship and startup businesses, the economy is getting its required boost towards the path of financial freedom. But one of the realities in contrast to this vision is the negative cash inflows.

Negative Cash in-flows

According to IBM Institute for Business Value and Oxford Economics, more than 90% of funded startups are shutting down within five years of their commencement. The reason for negative cash inflow, i.e., issues with the recovery of money. This happens due to the lack of solid legal support and prudent legal advisors. Businesses fail to recover an enormous amount of money from their debtors. This coerciveness of non-recovery pushes them to business closures or other financial instabilities.

Legal Notice to rescue

So, one can save themselves from bankruptcy and recover their money by sending a legal notice. Hire an advocate first. Advocate issues a Legal Notice on their client's behalf to solicit a settlement. Legal Notice must contain the following points:

1. Name & Description of the Complainant
2. Place of residence of the Complainant
3. Details of the cause of action
4. Monetary relief claimed by the Complainant
5. Gist of the legal basis for the claimed relief

Drafting a Money Recovery Legal Notice

1. The Complainant must draft a Legal Notice on an advocate's letterhead. The notice must be specific and proper. It must also contain the addresses and contact details of the advocate.
2. The Complainant must also state the date the legal Notice is issued. The notice must also detail the defendant's name, address, and contact details.
3. The legal notice for money recovery must contain the client's name and details.
4. The Notice must mention that the defendant infringes the right of the Complainant. And you seek the sum from him.
5. The defendant party must give a specific direction and time limit.
6. The advocate and the sender must sign the Notice with the date.

You can also get a sample legal notice format document for the recovery of money payment attached with this web page.

Cases of Legal Notice for Money Recovery

There are several situations when it becomes necessary to opt for legal solutions. Among them, the most common are as follows:

Tenant

Legal Notice format for Rent Recovery: If a tenant doesn't pay the rent to the landowner, the landowner can, in respect of the signing of the lease and license agreement, send a legal notice for recovery of outstanding dues.

Employee

Sample Legal Notice to the Employee for recovery of money: If an employee absconds with the money, then the Company can initiate a domestic inquiry by sending a show-cause notice to his residence.

Employer

Legal Notice format for recovery of money from Company: If a Company deprives its employees of their salary, then the employee can subscribe to procedures like sending a legal notice to recover the salary amount from the Firm. One can refer to a sample legal notice format for non-payment of dues.

Loan Recovery

Loan defaulters are impacting the economy massively. The government takes strong measures to recover the money circulated through debt. Therefore, they commission a Debt Recovery Tribunal in every State to resolve such debt-related issues. So one can begin with a legal notice for debt recovery from banks or financial institutions. One can refer to the legal notice format for non-payment of dues or loans.

You can also get a sample legal notice format document attached to this web page for the recovery of money payment in India.