Remedies Available to Recover Money from Promissory Note Generally, pending dues come into existence through business transactions undertaken by written contract. Written contracts are enforceable in the court of law. But if there are minor things to be looked on, one should see it otherwise, it can lead to future problems.

Let us return to the main topic, that is, what are the remedies available to recover money from the promissory note. There are various remedies available-

(a) Civil Remedies
Order 37 of the CPC, 1908 gives a person the option to file a suit, or one can say a recovery suit or summary suit for recovering the pending dues.

Procedure
1. The summary suit is instituted, and summon shall be issued.
2. A copy of the plaint along with summons as prescribed to the defendant
3. The defendant is required to apply for leave to defend the suit within 10 days of summons being service
4. In case, the defendant did not appear or in case his application is being refused then the judgment shall be entitled in favor of Plaintiff
5. In case the defendant does not follow the condition as stated in the leave then also the judgment shall be entitled in favor of Plaintiff

When is Leave to Defend is Granted?

1. a) If the defendant satisfies the court, he has a substantial defense, the defendant is entitled to an unconditional leave of appeal.
2. b) If the defendant raises triable issues indicating that he has a fair or reasonable defense, although not a positively good defense, the defendant is ordinarily entitled to unconditional leave to defend.
3. c) Even if the defendant raises triable issues, if doubt is left with the trial judge about the defendant’s good faith, conditional leave to defend is granted.
4. d) If the defendant raises a defense that is improbable, the trial judge may grant conditional leave to defend with conditions as to time or mode of trial as well as payment into court or furnishing security.

The Summary Procedure is applicable on all suits for the recovery of money that arise from the written agreement.

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(b) Negotiable Instruments Act, 1881
This Act particularly deals with the recovery of money arising from instruments such as bills of exchange or cheques.

It outlines the procedure for recovering money under a specific instrument. Section 138 of the Act deal with the explains the procedure for bouncing of cheque, whereby a legal notice is to be served to within a period of 30 days from the date of receipt of a cheque return memo from bank.

If other party fails to pay to make the payment then the Plaintiff shall have a right to file a case. Along with the complaint, an affidavit and the relevant documents are to be filed thereafter the court shall summon to the other party for hearing in the matter and if found guilty and pronounced its decision.

(c) Criminal Proceedings
These kinds of proceedings can be initiated against the defaulter under the Indian Penal Code, 1860.
The proceedings can be on Criminal breach of trust or cheating or even mischief. Generally, in a criminal proceeding, they include the Negotiable Instrument Act as they deal with the cases of the promissory note.
A case can be filed under Section 420 of the Indian Penal Code for cheating, Section 403 of Indian Penal Code for Misrepresentation, and Section 406 of Indian Penal Code of Breach of Trust.
But in most of the time, it is generally advised to avoid getting into or initiating criminal proceedings as it takes lot of time and energy to recover the dues. One needs to be very patient when dealing with such cases.

(d) Out of court settlement
It is the fastest and most economical ways of recovering money. The out of court settlement options are arbitration or conciliation or negotiation, etc.

When a matter comes before the arbitrator, it hears both the parties and passes an order which is legally binding. This award can be appealed on 3 grounds-
1. Invalid
2. In case the defendant has not given adequate time in order to present the case.
3. In case no notice for appointment of an arbitrator is given.

Conclusion
We can say that there are remedies available, but the person who is filing or wanting to file a case against someone must know which remedy or option is best suitable to him/her. The remedy should be of such nature, which should not consume a person’s time and energy and give favorable results.

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