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Legal Notice for recovery of dues

What Is a Legal Notice? - an Overview

A legal notice is an intimation sent by one person to another informing them that they intend to initiate legal proceedings against the other person. A legal notice is normally sent when an act or inability to do an act has damaged the person. For example, it is sent in instances where a contract has been breached, when a tenant is not paying the agreed rent, when a right has been infringed, etc.

In the present case, a legal notice can also be sent for the recovery of dues or money that has been promised. This is filed between two people and acts as a warning to the one withholding payment of dues. Legal notice for recovery of dues can be sent to an employer, friends, or acquaintances. Therefore, legal notices play an important part in the process that helps you recover money. It is a warning that notifies the person about the fact that they owe money to the person sending the notice. It works as the first step in the legal process and helps the receiver to know that if they fail to repay the dues, stricter legal action will follow. Hence, it serves as the final opportunity for the one receiving the notice to resolve the issue without having to go to court.

Benefits of Sending a Legal Notice

  • A legal notice acts as a warning that the due amount has to be repaid. It is sent to the person to remind them of their duties and obligations
  • It sends a message about the legal consequences of non-compliance
  • It makes the person aware of your grievance
  • It can prevent costly litigation
  • Encourages out of court settlement
  • There is added credibility in the sender’s claims.

What Should the Legal Notice Include? - Components

  • Name and address of the sender - This is very necessary as it acts as identification of the person who is asking for the recovery of dues
  • Relationship of the aggrieved and the defaulter - This is an elaboration of the facts and instances that lead to the default
  • Civil and penal consequences - This includes the consequences that may occur if the defaulter does not return the dues
  • Details of the monetary relief - This includes the amount that needs to be recovered and more monetary relief if the aggrieved party has suffered because of the default.
  • Legal basis of the relief sought

Procedure of Sharing a Legal Notice

  • The notice must be drafted on a lawyer's letterhead, mentioning their name, and place of work
  • The notice must also contain the lawyer's qualifications and contact details. The notice must have details regarding the date of the issue
  • It should mention the name, contact details, and address of the person to whom it is being issued
  • Similarly, it must contain the name, address, and contact details of the person issuing the notice
  • The notice must mention how the opposing party had defaulted payment or infringed the client's rights
  • It must direct the opposing party to do something to make up for the losses incurred to the sender within a stipulated period
  • The legal notice for nonpayment of dues must be signed by both the advocate and the client
  • It is a good practice to start every paragraph with ‘My clients states’ so that the receiver understands that everything written in the notice comes from the sender
  • A good legal notice will always devote at least a paragraph to what the sender wants from the opposite party. This is usually stated in the last paragraph and clear instructions regarding what is expected of the receiver must be mentioned with a timeframe for completion of said instructions
  • The notice after is drafted as per the client’s requirements and sent to the other party through a registered post. The notice contains the above necessary details. The notice also includes a time frame within which the other party is expected to respond. (30-60 days)
  • The copy of the sent notice is saved by the sender. It is a useful document if the aggrieved party initiates proceedings
  • After the timeframe is complete and the party has not responded the aggrieved party has the advantage of going to the courts.

When Can a Recovery of Dues Notice Be Filed?

  • Recovery of Rent - A landlord can send a notice for recovery of dues if the tenant refuses to pay the rent amount to the landlord
  • Embezzlement - Instances where an employee steals from a company. The company after an inquiry can send a notice of repayment of dues
  • An employee can demand due salary from the employer
  • Bounced Cheque - In the case of bounced cheque, the aggrieved can send a legal notice to the defaulter
  • Legal notice for payment of dues may also be sent with regards to disputes related to mortgage, possession (delays or extension), and land disputes
  • Furthermore, it can also be served to companies if they manufacture faulty and dangerous products, or provide illegal or bad services. It may also be filed against false advertisements
  • Legal notices for nonpayment of dues are also commonly filed during family feuds, divorce settlements, and child custody cases.

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