What Happens After Sending Money Recovery Legal Notice?

The notice is sent. The tracking says "Delivered." Now, the waiting game begins.

The 15-day notice period can feel long, but it is a critical strategic window. This is where the psychological pressure on the debtor is highest.

Based on our data from thousands of cases, here is exactly what happens next—and how you should react.

Scenario A: The Clean Win (Payment Received) - 40% Probability

What Happens: The debtor panics. They see a lawyer's letterhead, realize you aren't playing games, and decide it's cheaper to pay than to fight. Your Move:

1. Verify the Credit: Don't celebrate until the money hits your account.
2. Issue a Receipt: Send a formal "Full and Final Settlement" receipt. This prevents them from claiming later that the payment was for something else.
3. Close the Loop: Inform your lawyer the matter is settled so they close the file.

Scenario B: The Counter-Move (They Reply) - 30% Probability

What Happens: You receive a "Reply Notice" from their lawyer. Panic Check: Do NOT panic. A reply notice is standard procedure. Even if they knew they owe the money, their lawyer must deny it to protect them.

Common Excuses in Reply Notices:

• "I don't owe X amount, I only owe Y." (Admission of partial debt -> Good for you).
• "The goods supplied were defective." (Classic delay tactic).
• "The money was a gift, not a loan." (Hard to prove without evidence).

Your Move: The Rejoinder You can choose to:

1. Negotiate: If they admitted partial debt, take it. A bird in the hand is worth two in the bush.
2. Send a Rejoinder: Your lawyer writes back destroying their arguments with facts ("Here is the email where you praised the goods, so 'defective' is a lie").

Scenario C: The Stone Wall (Silence) - 30% Probability

What Happens: The 15 days pass. No payment. No reply. Radio silence. Why: They are betting that you are bluffing. They think you won't spend money on court fees.

Your Move: Call the Bluff You must escalate immediately. If you don't, your Legal Notice becomes a joke.

Option 1: File a Summary Suit (The Nuclear Option)

If you have written proof (Contract/Cheque/Invoice), file a suit under Order 37 of CPC.

• The Kicker: The judge will ask them: "Why didn't you reply to the legal notice?"
• The Result: Their silence is effectively an admission of guilt. Courts view non-replying debtors with extreme suspicion.

Option 2: File a Cheque Bounce Case

If you have a bounced cheque, go to the Magistrate Court.

• The Kicker: The court issues a summons. If they don't appear, the police are sent to fetch them.
• The Result: Most debtors pay 100% of the amount + legal costs on the first hearing date just to avoid standing in the accused box.

Option 3: Insolvency Petition (For Companies)

If a company owes you > ₹1 Crore, file under IBC.

• The Kicker: The NCLT threatens to auction their company.
• The Result: Immediate payment.

Conclusion: Use the Momentum

Sending a legal notice starts a clock. Do not let the momentum die.

• If they pay: Great.
• If they reply: Negotiate.
• If they ignore: Litigate.

The worst thing you can do is send a notice and then disappear for 6 months. That tells the debtor you are weak.

Did they ignore your notice? Talk to a Lawyer Now.