Introduction
Every delay in filing a recovery case means more financial bleed. But jumping into litigation without a proper checklist can backfire—procedural gaps can derail even strong cases.
Let's discuss a quick, field-tested checklist for your recovery ops, legal teams, and paralegals to ensure that you’re legally and strategically ready before filing any recovery suit or 138 complaints.
The Ultimate NBFC Recovery Filing Checklist
1. Documentation
- Loan sanction letter
- Signed loan agreement
- Loan account statement/ledger
- Borrower’s Aadhaar & PAN
- Security cheque/Post Dates Cheque (PDC) copy with proof of delivery
Tip: Use dispatch logs or signed receipt to prove the borrower received the instrument or notice.
2. Default Timeline Crossed
- For Recovery Suit: Account classified as NPA
- For NI Act (Sec. 138): 15 days passed post-bounce; 30 days notice sent
Mistake to avoid: Waiting beyond 30 days from cheque bounce to issue legal notice invalidates prosecution.
3. Service of Legal Notice
- Sent via Regd.AD / Speed Post / courier / email / WhatsApp
- Acknowledgement or delivery proof saved
- Soft copy preserved for digital evidence
4. Jurisdiction Mapped Correctly
- For Recovery Suit: Where borrower resides or loan agreement executed
- For 138 Case: Where cheque was presented or drawer’s bank branch located
5. POA / Board Resolution (For Corporate Borrowers)
- Power of Attorney or Board Resolution authorizing the litigation
- Authorized Signatory verified
This is critical for maintainability of the suit—courts dismiss cases where authority isn’t clearly proven.
6. Optional: Parallel Recovery Actions
- SARFAESI 13(2) Notice issued (for secured loans)
- Arbitration clause evaluated and invoked if present
- Lok Adalat or mediation option reviewed (for small-ticket cases)
7. Follow-Ups
- CRM-based case tracking assigned
- Internal follow-up calendar set for status updates
- Email group or dashboard updated with next hearing/date
Need Help in Recovery?
At Rajiv Ohri & Associates, we help NBFCs across Delhi-NCR execute clean, error-free recoveries—be it civil suits, DRT filings, Arbitration proceedings or cheque bounce cases.
📞 Missed any of these steps? - Schedule a free consultation today to review your lease or draft a legally sound agreement tailored to your business needs.
Read more on our blogs!
