Recovery of Money
The most common remedy for recovering money is through order 37 of the Civil Procedure Code. This enables the creditor to file a suit. Within 10 days of filing the suit, the debtor is expected to appear before the Court. On failure to do so, the Court assumes that the allegations against him/her are true. The creditor is then awarded the said amount.
To recover an amount of money, the first step is to issue a legal notice asking the debtor to repay the entire amount that is due. If they fail to repay the amount, a suit for Recovery of money can be filed. You can also ask compensation for damages if there has been any loss suffered due to the non-payment of dues.
You also have the option to file a summary suit under order 37 of CPC for recovery of the money with interest. You can claim interest rate if your contract with the company mentions interest to be charged in case of non-payment (usually there is such a clause, along with a time period given within which the party is allowed to make their payments). However, if your contract is silent, you cannot claim interest from the date of default of payment.
The Limitation period for such cases is 3 years. This means that you have to file the case for recovery of money with the suit for damages before the civil court within three years of the day of when the other party was supposed to pay but did not.
Another means of recovery is through the Negotiable Instruments Act, 1881. Since this act deals with negotiable instruments, i.e. bill of exchange, cheque and promissory note, only money transferred through these modes can be recovered.