04 · Business & Corporate
Business Recovery
Business recovery covers recovering amounts owed to a business by customers, distributors or other parties.
What this covers
- 01Demand notices
- 02Commercial suits and summary suits
- 03Recovery through arbitration
- 04Insolvency proceedings against defaulting companies
- 05Settlement and payment plans
How it generally works
The route depends on the amount and the documents available. Claims based on invoices and written contracts often proceed through commercial courts, sometimes under the summary procedure of Order XXXVII of the Code of Civil Procedure.
Where the debtor is a company and the default is at least one crore rupees, the creditor may consider proceedings under the Insolvency and Bankruptcy Code, 2016, though these are collective proceedings, not a simple recovery tool.
Commercial suits are usually preceded by mandatory pre-institution mediation.
