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.
Where this applies to a live matter, it is usually worth discussing it in a consultation before acting.
The content above explains how the law generally works; it is not legal advice and should not be treated as a substitute for advice on your particular facts.
This page provides general information about the law in India and is not legal advice. For advice on your specific situation, please consult a qualified advocate.