The institution of civil suits for money recovery constitutes a vital legal remedy for individuals and entities seeking to enforce their monetary claims. In the National Capital Territory of Delhi, such proceedings are governed by the Code of Civil Procedure, 1908 (hereinafter “CPC”), the Indian Contract Act, 1872, the Limitation Act, 1963, and various local legislations including the Delhi Court Fees Act, 2012 and the Delhi High Court (Original Side) Rules, 2018.

Given Delhi’s hierarchical civil court structure and the active original civil jurisdiction of the High Court of Delhi, the selection of the appropriate forum, proper drafting, adherence to procedural formalities, and strategic use of summary procedures under Order XXXVII CPC become critical to the efficacious prosecution of such suits.

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Legal Framework and Governing Statutes (Delhi Focused)

The legal basis for instituting civil suits for money recovery in Delhi is grounded in a composite framework of substantive and procedural laws. The principal enactments applicable are as follows: 

  1. The Indian Contract Act, 1872
  2. The Code of Civil Procedure, 1908 (CPC)
  3. The Limitation Act, 1963
  4. The Indian Evidence Act, 1872
  5. The Delhi Court Fees Act, 2012 

For a broader overview of money recovery suits across India, click here to read our detailed pan-India guide.

Jurisdiction of Civil Courts in Delhi for Money Recovery Suits

In Delhi, jurisdiction is governed by territorial, pecuniary, and subject-matter criteria, all of which must be satisfied simultaneously.

Territorial Jurisdiction

In accordance with Sections 15 to 20 of the CPC, a suit for recovery of money may be instituted in a court within whose local limits:

  • The defendant resides or carries on business; or
  • The cause of action, wholly or in part, arises.

In Delhi, plaintiffs may rely on the “cause of action” doctrine if the transaction occurred, or partial payment was made, within Delhi’s territory—even if the defendant is located outside.

Pecuniary Jurisdiction

Pecuniary thresholds in Delhi are determined as per the Delhi High Court Act, 1966 and notifications issued by the Delhi High Court. As of the current structure:

  • Up to ₹3 lakhs – Civil Judges in District Courts.
  • Above ₹3 lakhs and up to ₹2 crores – District Judges (Commercial or Civil Division, as applicable).
  • Above ₹2 crores – High Court of Delhi on its Original Civil Jurisdiction.

The valuation of the claim must be calculated strictly in monetary terms, including principal and pre-suit interest.

Subject-Matter Jurisdiction

Civil courts in Delhi are competent to try suits of a civil nature, except those barred expressly or impliedly by statute. A money recovery suit does not fall within any barred category and hence is ordinarily triable by a civil court unless a special forum (e.g., DRT, NCLT, Consumer Forum) has exclusive jurisdiction.

Bar under Section 9 CPC

As per Section 9 CPC, civil courts have jurisdiction to try all suits of a civil nature unless barred. For example:

  • Recovery suits involving banks exceeding ₹20 lakhs may lie before the Debt Recovery Tribunal (DRT) under the Recovery of Debts Due to Banks and Financial Institutions Act, 1993.
  • Consumer disputes may lie before appropriate Consumer Commissions under the Consumer Protection Act, 2019.

Where no statutory bar exists, the appropriate civil court in Delhi will have jurisdiction to try the matter.


Institution of Suit and Procedural Compliance in Delhi

The institution of a money recovery suit in Delhi must conform to the procedural rigours outlined in the Code of Civil Procedure, 1908, the Delhi Court Fees Act, 2012, and the Delhi High Court (Original Side) Rules, 2018 (where applicable). The following steps are imperative:

1. Drafting and Filing of Plaint (Order VII Rule 1, CPC)

A properly drafted plaint must include:

  • The name, address, and description of both parties;
  • A concise statement of material facts giving rise to the cause of action;
  • The precise amount claimed and break-up of principal and interest;
  • Jurisdictional facts, including territorial and pecuniary aspects;
  • List of documents relied upon (to be filed with the plaint);
  • A verification clause and an affidavit in support of pleadings;
  • A declaration that the suit is not barred by limitation.

The plaint must be signed and verified by the plaintiff or an authorised representative.

2. Court Fees and Valuation

In Delhi, court fees are calculated under the Delhi Court Fees Act, 2012 on an ad valorem basis, depending on the amount claimed. The correct fee must be paid at the time of filing, failing which the suit may be rejected under Order VII Rule 11(b) and (c) CPC.

3. Affidavit of Truth (Rule 15A of Order VI, CPC)

Post the CPC Amendment of 2002, every plaint must be accompanied by an affidavit attesting to the truthfulness of the contents, signed before a notary or oath commissioner.

4. Filing Platform in Delhi

  • For District and Civil Courts: e-Filing through the Delhi District Court e-Filing Portal.
  • For matters exceeding ₹2 crores: Filing is done at the Original Side Registry of the Delhi High Court in accordance with the Delhi High Court (Original Side) Rules, 2018.

5. Issuance and Service of Summons (Order V, CPC)

After scrutiny and registration, a summon is issued to the defendant to file a written statement within 30 days, extendable up to 90 days upon the court’s discretion.

Service is effected through:

  • Registered post with acknowledgement;
  • Personal service via bailiff;
  • Electronic means under the e-Service Rules where permitted;
  • Substituted service under Order V Rule 20 CPC if normal modes fail.


Written Statement, Replication, and Framing of Issues in Delhi Courts

After the service of summons, the defendant is required to file a Written Statement (WS). This stage is crucial as it lays the foundation for the defence and determines the scope of the trial.

1. Written Statement (Order VIII CPC)

The defendant must file a written statement:

  • Within 30 days from the date of service of summons;
  • Extendable up to 90 days with reasons recorded in writing and on payment of costs.

As per the Delhi High Court (Original Side) Rules, 2018, in commercial suits, timelines are strictly enforced under the Commercial Courts Act, 2015, and the WS must be filed within 120 days, after which the right to file is forfeited.

The WS must:

  • Respond to each allegation in the plaint;
  • State whether each is admitted, denied, or not admitted;
  • Disclose all material facts, raise all defences;
  • Be verified and accompanied by an affidavit of truth (Order VI Rule 15A);
  • Be filed along with supporting documents, if any.

Failure to file the WS may lead to the suit being decided ex parte, and the court may pronounce judgment under Order VIII Rule 10.

2. Replication by Plaintiff

Where new facts are pleaded in the WS that require rebuttal, the plaintiff may file a replication with the court’s permission. Though not mandatory, it becomes significant in complex matters and commercial suits.

The replication should:

  • Address new facts or legal contentions in the WS;
  • Be consistent with the original plaint;
  • Avoid introducing new causes of action.

3. Framing of Issues (Order XIV CPC)

Once pleadings are complete:

  • The court frames “issues” of law and fact that are in dispute;
  • These issues form the backbone of the trial and are determinative of the final adjudication.

In Delhi courts, this is generally done in the first hearing post-completion of pleadings, and may include issues such as:

  • Whether the defendant is liable to pay the amount claimed;
  • Whether the suit is within limitation;
  • Whether the plaintiff has established the existence of a valid contract or transaction.

The case is thereafter listed for evidence, commencing the trial phase.


Trial, Evidence, and Judgment in Delhi Courts

Following the completion of pleadings and framing of issues, the suit progresses to the trial stage, which involves recording of evidence, legal arguments, and pronouncement of judgment. In Delhi, this process is governed by the CPC and, where applicable, the Delhi High Court (Original Side) Rules, 2018 and the Commercial Courts Act, 2015.

1. Burden of Proof and Standard of Proof

As per Sections 101 to 104 of the Indian Evidence Act, 1872, the initial burden lies on the plaintiff to prove the cause of action and the defendant’s liability. Once prima facie evidence is led, the burden may shift to the defendant to disprove the claim or establish a valid defence.

2. Filing of Evidence by Affidavit (Order XVIII Rule 4, CPC)

In Delhi:

  • Examination-in-chief is conducted through affidavit;
  • Witnesses are thereafter subjected to cross-examination and re-examination before the court;
  • The Delhi High Court mandates filing Evidence Affidavits along with List of Witnesses and Documents well in advance.

3. Documentary and Oral Evidence

Permissible evidence includes:

  • Contractual documents, invoices, payment receipts;
  • Acknowledgements of debt, e-mails, WhatsApp chats (if verified by certificate under Section 65B of Evidence Act);
  • Account statements, certified under Bankers’ Book Evidence Act, 1891;
  • Oral testimony of parties and witnesses.

Secondary evidence is admissible only upon proving loss, destruction, or unavailability of the original (Section 65 Evidence Act).

4. Arguments and Submissions

After the evidence is closed:

  • Oral arguments are advanced by both parties;
  • Courts may also seek written submissions, particularly in commercial or voluminous matters;
  • Submissions must refer to relevant facts, issues, and legal provisions relied upon.

5. Judgment and Decree (Order XX CPC)

The Court delivers a reasoned judgment addressing each framed issue. If the suit is decreed:

  • A money decree is passed for the principal amount;
  • Interest is awarded under Section 34 CPC:

    • Pre-suit: contractual or customary;
    • Pendente lite: at court’s discretion (commonly 6% to 12%);
    • Post-decree: up to 6% unless the liability is commercial.

In commercial suits under the Commercial Courts Act, higher post-decree interest may be awarded under Section 34 proviso.

A certified copy of the decree must be obtained for execution purposes.


Execution and Enforcement of Decrees in Delhi

Once a decree for recovery of money is passed, the successful plaintiff becomes the “decree-holder”, and the judgment-debtor is legally bound to comply with the court’s directions. If the judgment-debtor fails to pay the decretal amount, the decree-holder must initiate execution proceedings under Order XXI CPC.

1. Jurisdiction and Filing of Execution Petition

  • The execution petition must be filed in the same court which passed the decree or a transferee court having jurisdiction over the judgment-debtor’s assets.
  • In Delhi, the pecuniary and territorial jurisdiction follows the same thresholds as in the original suit:
    • Up to ₹3 lakhs: Civil Judge;
    • ₹3 lakhs to ₹2 crores: District Judge;
    • Above ₹2 crores: Delhi High Court (Original Civil Jurisdiction).

The execution petition must be accompanied by:

  • A certified copy of the decree;
  • A statement of the amount due, including interest and costs;
  • Details of assets of the judgment-debtor, if known.

2. Modes of Execution (Order XXI CPC)

The decree-holder may seek the following remedies:

  • Attachment and Sale of Movable or Immovable Property under Rules 43–54;
  • Arrest and Detention of judgment-debtor in civil prison under Rules 30–40 (used sparingly and in cases of wilful default);
  • Garnishee Proceedings to attach monies payable to the judgment-debtor by third parties (Rule 46);
  • Appointment of Receiver to manage the debtor’s property (Rule 1 of Order XL);
  • Restraining Orders or Injunctions where necessary.

3. Objections by Judgment-Debtor

The judgment-debtor may raise objections under:

  • Section 47 CPC: Questions relating to execution, discharge, or satisfaction of the decree;
  • Rules 97 to 106 of Order XXI: Objections by third parties or resistance to possession;
  • However, objections must be genuine and substantiated, not merely dilatory tactics.

4. Limitation Period for Execution

  • Under Article 136 of the Limitation Act, 1963, execution can be filed within 12 years from the date when the decree becomes enforceable.

5. Compromise and Settlement

  • A decree can also be satisfied through compromise or out-of-court settlement, recorded under Order XXIII Rule 3 CPC;
  • The compromise decree is executable in the same manner as a regular decree.

6. Execution in Commercial Suits

In suits under the Commercial Courts Act, 2015, execution proceedings are expedited:

  • Timelines are stricter;
  • Courts may impose actual costs under Section 35 of CPC;
  • Pre-execution disclosure of assets may be directed.


Conclusion

The institution and prosecution of a civil suit for the recovery of money in Delhi encapsulates a comprehensive legal mechanism aimed at enforcing monetary liabilities in a structured, time-bound, and procedurally robust manner. 

When pursued diligently, a suit for recovery of money can culminate in a legally enforceable decree, followed by efficient execution, thereby preserving the sanctity of financial obligations and upholding commercial integrity.


Frequently Asked Questions (FAQs)

1. What is the minimum and maximum pecuniary limit for filing a money recovery suit in Delhi?

  • Suits up to ₹3,00,000 lie before the Civil Judges;
  • Between ₹3,00,000 and ₹2,00,00,000 lie before District Judges;
  • Above ₹2,00,00,000 lie before the Delhi High Court (Original Side Jurisdiction).

2. Can I file a summary suit for money recovery in Delhi?

Yes. Under Order XXXVII CPC, a summary suit can be filed before the appropriate court in Delhi, especially for recovery based on written contracts, bills of exchange, or promissory notes.

3. Is pre-litigation mediation mandatory before filing a recovery suit in Delhi?

In commercial disputes of specified value (above ₹3 lakhs), pre-institution mediation is mandatory under Section 12A of the Commercial Courts Act, 2015, unless urgent interim relief is sought.

4. What is the limitation period for filing a recovery suit in Delhi?

Three years from the date the payment becomes due or from the last acknowledged payment (Section 18, Limitation Act, 1963).

5. What are the modes of executing a money decree in Delhi?

Execution proceedings in Delhi courts may involve:

  • Attachment and sale of property;
  • Garnishee orders;
  • Civil imprisonment for wilful default;
  • Appointment of receivers.