Recovering money owed is one of the most commercially urgent legal problems a business faces — and one where the right strategy determines whether you recover anything at all. Novation Legal advises creditors, financial institutions and businesses on the full spectrum of recovery mechanisms available under Indian law: summary suits and DRT proceedings, IBC-based insolvency as a recovery tool, SARFAESI enforcement, decree execution and asset tracing.
The forum decision in the first two weeks decides the outcome. We move fast.
The Debts Recovery Tribunal is the specialised forum for banks and notified financial institutions seeking recovery of debts above ₹20 lakh. We file Original Applications, secure interim attachment, contest counter-claims and execute Recovery Certificates through the Recovery Officer. Where the borrower obstructs, we move to SARFAESI parallel enforcement and Section 19(20) personal liability against guarantors.
The Insolvency and Bankruptcy Code, 2016 has transformed creditor strategy. Section 7 (financial creditor) and Section 9 (operational creditor) admissions before NCLT trigger an immediate moratorium and Corporate Insolvency Resolution Process. Even the threat of admission frequently produces settlement. We prosecute admissions, advise on resolution plan voting in CoC, contest avoidance applications and pursue personal insolvency under Part III against defaulting promoters.
The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 permits secured creditors to enforce security interest without court intervention. We draft Section 13(2) demand notices, take symbolic and physical possession under Section 13(4), conduct auction sale under Section 14, and contest borrower challenges before the DRT. Where defaulters move under Section 17, we defend the enforcement and accelerate sale.
For undisputed money claims based on bills of exchange, hundis, promissory notes, written contracts or guarantees, Order 37 CPC permits summary suits with no automatic right of defence — the defendant must seek leave to defend on disclosing a substantial defence. We file Order 37 suits with full documentary armour and oppose leave-to-defend with prepared evidence. Decrees obtain in months, not years.
A debtor who transfers assets to relatives or shell entities while default brews is a frequent reality. We pursue avoidance under IBC Sections 43, 45, 49 and 50 (preferential, undervalued, fraudulent and extortionate transactions); set aside transfers under Section 53 of the Transfer of Property Act; secure interim attachment orders within days; and trace beneficial ownership through bank trail analysis and Companies Act 2013 disclosures.
Every matter is handled by a partner with end-to-end accountability. Book a confidential consultation in the strictest BCI compliance.