Ways to Recover Money from a Friend or Someone Else

Do you want your money back? This is a short, step-by-step legal and practical guide for people in India who lent money to someone they trust, friend, family, buyer, lender, and now need it back. Read it, act fast (there’s a time limit), and follow the checklist below. Just see what works best for you.

7 Easy & Practical Ways to Recover Money

Before diving into the legal options, it’s important to understand these five practical things you can try first. 

1. Try to Get Control Over the Situation 

If you keep saying “whenever you can, please pay it to me”, payment drops to zero priority. 

Do this instead: 

• Give one clear amount + one firm date 
• Speak in statements, not requests 

“I need ₹25,000 by Friday evening. Please confirm.” 

In most cases, people aren’t refusing to pay—they’re delaying it. 

2. Break the Amount down 

Large amounts feel impossible & easy to postpone. Smaller ones feel doable.  

Instead of Saying: 

“Return ₹50,000”  

Say: 

“Send ₹10,000 today. We’ll close the balance in parts.” 

Once the first payment happens, there’s a good chance you’ll get something, which is better than nothing. 

3. Public-but-Polite Pressure (Carefully) 

Make sure what you say doesn’t come across as insulting or shaming them. Keep it casual, not accusatory. 

• Ask about money in group settings (friends / family chats) 
• Casually bring it up when others are present 

“You were going to clear my amount this week, right?” 

Most People hate looking unreliable in front of others, especially if you bring this in front of someone they care about. While this may lightly touch their ego, social accountability often prompts action and helps in recovering the money. 

4. Tie It to Their Reputation 

Works especially well with professionals. 

Example: 

“I’ve always spoken well about you. Let’s not make this awkward.” 

You’re reminding them what they lose, trust, not money. Usually, people with good principles are going to clear their debts, but they can also delay sometimes, this is the way to butter them up. 

5. If Reputation Doesn’t Work, Re-Route the Pressure 

If someone still hasn’t paid, it usually means their own reputation is no longer a concern. 

At that point, identify whose reputation does matter to them- a spouse, parent, business partner, investor, or senior family member and bring the conversation closer to that circle. 

The objective isn’t to threaten or shame. It’s to shift accountability to a space they care about and can’t easily ignore. 

6. Offer a Face-Saving Exit 

Sometimes people delay payment because they’re embarrassed. Giving them a dignified way out can unlock honesty and sometimes money 

Say: 

• “If you’re stuck, tell me honestly. We’ll fix a plan.” 
• This often unlocks truth + partial payment. 

7.  Use a Formal Warning Before Escalation 

If reminders and deadlines don’t work, introduce seriousness into the conversation. 

Get a warning letter drafted by DigiLawyer with: 

• A clear outstanding amount 
• Firm payment dates 
• A final opportunity to settle 

This warning letter acts as a last, formal nudge before issuing a legal notice. Many people respond at this stage because it signals that the matter is moving from informal follow-ups to formal action-without yet escalating to court. 

Think of it as a controlled step: firm, documented, and often enough to trigger payment before the actual legal notice is sent. 

However, it’s important to be realistic-these methods are not guaranteed solutions. At the end of the day, you need recovery of debt, not conversations. 

Legal Ways to Recover Your Money

If someone owes you money and refuses to pay, you may be able to recover it legally. In certain situations, the law allows you to force repayment. Below are the legal ways you can recover your money.

1. When a Legal Notice Gives You Back Your Money? 

Sending a Legal Notice for money recovery is the single most effective step in money recovery. 

It is a formal letter sent by an advocate on your behalf. It is not a court case yet. It is a warning shot. It effectively says: "You owe my client ₹X amount. If you do not pay within 15 days, we will drag you to court, and you will have to pay the debt plus interest plus my legal fees." 

Why It Works? 

Most people are terrified of courts. 

• They don't want police at their door. 
• They don't want a "Court Case" status on their background check when applying for jobs or visas. 
• They don't want their family to know they are being sued. 

A legal notice on an advocate's letterhead breaks their denial. It makes the problem "real." 

2. Next Steps When a Legal Notice Fails 

If the legal notice is ignored (which happens with hardened defaulters), you have to file a suit. These are your options. 

Option A: Summary Suit (Order 37 of CPC) 

The Fastest Method. 

This is the best option if you have written proof (Cheques, Promissory Notes, Written Agreements). 

• How it works: In a normal case, the borrower can drag things on for years by filing random defenses. In a Summary Suit, the borrower is not allowed to defend themselves automatically. They have to ask the judge for permission to speak. 
• The Judge asks: "Do you have a solid reason why you shouldn't pay?" 
• If their excuse is weak ("I don't have money right now"), the judge refuses permission and passes a judgment in your favor immediately. 
• Timeline: Much faster than regular suits (6 months to 1.5 years). 

Option B: Ordinary Money Recovery Suit 

The Standard Route. 

Use this if your proof is weak (e.g., only WhatsApp chats, no formal agreement). 

• Here, the borrower has the full right to defend themselves. 
• Witnesses will be called. Evidence will be examined. 
• Timeline: Slower (2–4 years). 
• Tip: You can also ask for interest (usually 9% to 12%) for the delay period. 

Option C: Commercial Courts (For Big Amounts) 

If the transaction can be classified as "commercial" (e.g., a business loan between friends) and is above a certain value (usually ₹3 Lakhs+), you can approach the Commercial Courts. 

• These courts have strict timelines. 
• Mandatory Mediation: Before the case starts, the court forces both parties to sit with a mediator to try and settle. This is excellent for resolving disputes without a trial. 

In metro cities like Bengaluru, Hyderabad, and Pune, courts now allow e-filing through state judicial portals, making it easier for a lawyer to recover money on your behalf without physical court visits for every small date. 

3. When Should You Go for Criminal Cases?

Civil law is about getting money back. Criminal law is about punishment. Usually, money recovery is a civil matter. The police will tell you, "Go to court, this is a civil dispute." 

However, there are two exceptions where you can file a criminal complaint (FIR). 

Option A: Cheque Bounce (Section 138, NI Act) 

If the borrower gave you a cheque to repay the loan, and it bounced due to "Insufficient Funds,"  

• This is a criminal offence. 
• You must send a legal notice within 30 days of the cheque bouncing. 
• If they don't pay within 15 days of the notice, you file a case. 
• Consequence: They face up to 2 years in jail or a fine of double the cheque amount. 
• Note: Most people pay up instantly once a Section 138 summons reaches their house. No one wants to go to jail for a bounced cheque. 

Option B: Cheating (Section 420 IPC / Section 318 BNS) 

For a criminal case under Section 420 IPC (or equivalent BNS provisions, read about IPC vs BNS differences here) for cheating, 

• If they took the money promising to invest it in a business that didn't exist? That’s cheating. 
• If they used a fake name or forged documents? That’s cheating. 
• But if they genuinely borrowed it and just can't pay it back now? That is not cheating. That is a breach of contract (Civil). 

Where to File Your Recovery Suit 

Understanding jurisdiction is crucial for your recovery suit under CPC. Under Section 20 of the Code of Civil Procedure, you can file a suit for recovery of money at: 

1. Where the defendant resides (the borrower's current address) 
2. Where the defendant carries on business (if applicable) 
3. Where the cause of action arose (where the loan was given or was to be repaid) 

For amounts up to ₹20 lakhs: District Courts or Civil Courts have jurisdiction (varies by state) 

Above ₹20 lakhs: May be filed in District Court or High Court depending on state rules 

If you need to move your case due to inconvenience or other valid reasons, here's how to transfer a case from one court to another. 

What Proof Do You Need to Recover Your Money? 

1. Bank Statements (The Gold Standard) If you transferred via UPI (GooglePay, PhonePe), NEFT, RTGS, or Cheque, you are safe. The bank entry proves the money moved. The onus shifts to them to prove why you gave it to them. Was it a gift? Did they sell you a car? If they can't prove that, the court assumes it’s a debt to be repaid. 

2. WhatsApp and SMS Yes, WhatsApp chats are valid evidence in Indian courts. 

• Context matters: Screenshots showing you asking for money and them making excuses ("Next week pakka," "Salary didn't come") are proof they admit they owe you. 
• Export the chat: Don’t just take screenshots. Export the chat history via email to yourself so you have the metadata. 

3. Voice Recordings Is it legal to record calls in India? Generally, recording a conversation you are a part of is admissible in civil proceedings if it’s relevant to the case. 

• The trick: Get them to say the amount. 
• You: "I am really stressed about the 5 Lakhs." 
• Them: "I know, I know, I will give the 5 Lakhs back in March." 
• That recording is pure gold for your lawyer. 

4. Witnesses Did anyone else see you give the money? Or did the borrower mention the loan to a mutual friend? Witness statements can support your case, though they are weaker than digital proof. 

The Section 65B Certificate 

Here is a slightly technical but important point. Electronic evidence (chats, emails) needs a certificate under Section 65B of the Indian Evidence Act. Don't worry you don't need this now. But when you file a case, your lawyer will draft an affidavit stating that the device (your phone/laptop) was working properly and the prints are authentic. It’s a standard legal procedure. 

Cost of Filing a Money Recovery Suit in India

Understanding the costs involved is important before starting any money recovery process. Understanding the financial commitment helps you decide whether to pursue a recovery suit under CPC. Here’s a clear breakdown to help you plan better.

Court Fees (Approximate) 

Lawyer Fees for Money Recovery

Total Estimated Cost for Money Recovery 

For a ₹5 lakh claim (summary suit): 

• Court fees: ₹5,000 
• Lawyer fees: ₹20,000 
• Miscellaneous (stamps, copies): ₹2,000 
• Total: ₹27,000 (5.4% of claim) 

Cost-Benefit Analysis: If you're trying to recover ₹50,000 through court, legal costs might consume 40-50% of recovery. Consider negotiated settlement or Lok Adalat first. 

How Long Do You Have to Recover Your Money? 

Under the Limitation Act, 1963 in India, the "limitation period" for money recovery is 3 years from the date the debt became due. 

• If you lent money on 1st Jan 2020, and they were supposed to pay back on 1st Jan 2021.
• You must file the case by 1st Jan 2024. 

If you wait until 2nd Jan 2024, your money is gone legally. The court will dismiss your case instantly, no matter how much proof you have. 

When Is It Hard to Recover Your Money Legally? 

This is where things get tricky. 

The Cash Problem If you lent a large amount (over ₹20,000) entirely in cash with no witnesses and no written acknowledgment, recovery is very difficult. The borrower can simply deny ever receiving it. 

Furthermore, under Section 269SS of the Income Tax Act, accepting a loan or deposit in cash of ₹20,000 or more is actually a penalty-attracting offence for the borrower, and repayment in cash of ₹20,000 or more is an offence for you (Section 269T). 

The most common lie borrowers tell in court is: "He gave it to me as a gift because he is my uncle/friend." This is why your WhatsApp messages are crucial.  

If a message says "When will you return the money?", and they reply, "Soon," that proves it was not a gift. Gifts are not "returned." 

Practical Rules for the Future 

If you eventually get your money back (or even if you don't), you need to change how you operate. You don't have to stop helping people, but you must stop being naive. 

Treat your personal lending like a Personal Credit Score. 

How Digilawyer Can Help? 

Don't let another day pass while your money sits with someone who refuses to repay. Take the first step toward your money recovery today. 

What Digilawyer Offers: 

Frequently Asked Questions (FAQs)