Recovering Money Owed to You: The Limitation Period and Your Options: Frequently Asked Questions

Here is a general overview of common questions on recovering money owed to you under Indian law.

Before the frequently asked questions

The limitation period for a suit to recover a debt or liquidated sum is generally 3 years, under Articles 19, 21, or 113 of the Limitation Act, running from when the money became due.

A written acknowledgment of the debt, signed before the limitation period expires, restarts the 3-year period under Limitation Act s.18.

Frequently asked questions

How long do I have to sue to recover money owed to me?

Generally 3 years from when the amount became due, under the Limitation Act. A written acknowledgment of the debt signed within that period restarts the 3-year clock.

Do I have to try mediation before suing for a commercial debt?

If the claim is ₹3 lakh or more and commercial in nature, yes — pre-institution mediation under s.12A of the Commercial Courts Act is mandatory, and the Supreme Court has held that suits filed without it should be rejected.

For a fuller explanation, see Cheque Bounce (NI Act Section 138): The Process After 2025 Reforms and Recovering Delayed Payments as an MSME.

If this touches a situation you are dealing with, you are welcome to discuss it in a consultation.

This overview is general information, not legal advice. Procedures and local practice can differ, so a specific review of your matter is advisable before acting.