ENTRUST YOUR OUTSTANDING RECEIVABLES IN INDIA TO INVENIUM
The Limitation Act of 1963 envisages that the standard limitation period for civil and commercial claims is 3 years. The letter of formal notice to comply does not interrupt the limitation period but the initiation of legal proceedings or obtaining acknowledgement of the debt is required.
The local Civil Procedure Code (1908) does not envisage application for an order for payment but a kind of accelerated procedure – suit for recovery – which facilitates rather rapid credit collection. This is a measure issued by a judge, objection to which is subject to acceptance by the latter and only in the presence of certain evidence. After 10 days with no objection, the creditor may request an Enforcement Order. This procedure can be activated in the presence of a written contract, acknowledgement of the debt or a guarantee.
In the absence of the above, classic legal proceedings become quite problematic since the legal system is not unique and the jurisdiction system consists of various levels. Art. 35 of the Civil Procedure Code allows the court to award costs at its discretion and the lawyers’ code of ethics ‘does not allow litigation funding.
Rather high legal costs and complexity of the legal system are more than sufficient elements to justify an attempt at mediation managed locally through lawyers. Among other things, it should not be forgotten that India is not party to any international treaties on the recognition and enforcement of rulings.
In Asia, lawyers can exert strong pressure on debtors to pay, which is why in the case of a dispute, the first thing to do is to have a good local Indian lawyer who will immediately send a warning and then a letter of request.
In most cases, if the debtor is solvent, the matter will be settled via letters. The letter of request must be in Indian. Too often lack of attention and understanding of the facts of the matter nullify the result.