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Recovery Suit Is Filed Under Which Section Of IPC

  • Writer: lead India
    lead India
  • Mar 22, 2023
  • 3 min read

Nowadays, it happens that the other party doesn't return the money or repay the amount within the agreed-upon time frame. So, the party who has suffered harm has a range of legal options to pursue against the defaulting party. If the aggrieved parties still don't receive the payment, they can go for one of these choices, Summary Lawsuit, Negotiable Instruments Act, Criminal case or Insolvency and Bankruptcy Code.


Legal Provisions under IPC:


Different laws allow for the filing of criminal cases in order to recover money owed to borrowers. If a borrower uses a check or a bill of exchange to make a payment but fails to do so, the moneylender may file a lawsuit under the Negotiable Instruments Act.


Likewise, if a borrower uses a check or a bill of exchange to make a payment but it bounces, the moneylender may file a lawsuit under Section 138 of the Negotiable Instruments Act and the borrower is required to make up the difference within 30 days.

If the borrower doesn't pay back the money, a criminal prosecution may be brought against him, and he will be sentenced to two years in prison in addition to having to refund the money.


A number of clauses in the Indian Criminal Code (IPC), 1860, allow remedies to those whose money has been past due for various reasons.

The following provisions of the IPC may be applied in certain situations:

  • Cheating (Section 415): A person commits cheating whenever they use fraud or deception to coerce another person into giving them any property. Cheating carries a maximum sentence of one year in jail, a fine, or both.

  • Criminal Misappropriation (Section 403): A person commits a criminal misappropriation when they dishonestly utilize another person's property for their personal benefit. Penalties include a fine, up to two years in jail, or both.

  • Felony Trust Breach: (Section 405): A criminal breach of trust occurs when someone dishonestly appropriates or transforms another person's property for their own gain. Criminal misappropriation and criminal breach of trust is the same thing in this instance because the individual was given the possession of the goods.

Case Laws:

  • According to the Karnataka High Court, unless the crime of fraud or criminal breach of trust is shown, criminal law cannot be invoked to recover money paid under a contract. This was evident in the criminal petition no. 4856 of 2021 case AMIT GARG v. State of Karnataka, where Justice M. Nagaprasanna presided over a single judge bench.

The High Court began by citing the Supreme Court decision in the case of Sushil Sethi v. State of Arunachal Pradesh, wherein the Apex court considered the full scope of law about the interaction between the contract and cheating.


As the Supreme Court indicated in its decision, the issue at hand involves both incurable defects for triggering the criminal law—one is begun for contract violation and the other is initiated for money recovery.


Hence, if additional actions were taken against the petitioner, they would turn into harassment and cause a miscarriage of justice, making the current situation a suitable one for this Court to exercise its authority under Section 482 of the Cr.P.C. and nullifying the impugned proceedings.


The petitioner cannot be charged with the offense under Section 419 of the IPC, the court further decided, because "there was no deceit in the incident at hand."


The bench makes the following comment about the inclusion of Sections 66C and 66D of the Information Technology Act: "These provisions of the Act are careless inclusions in the offense as the facts stated herein would not even slightly touch upon Sections 66C and 66D of the Act. Thus, the petitioner cannot also be charged with such offenses.


Best property lawyer in India should be searched if the dispute is related to property. Cheque bounce lawyers in Kolkata can be hired if the cause of action has occurred in Kolkata. Best corporate lawyers in Kolkata can also be searched if the case has been filed in Kolkata.


At Lead India, we offer a range of legal and professional services. You can ask a legal question here. Talk to a lawyer and get the best advice possible in this scenario. The members of our legal team will help you make informed decisions. We also provide free legal advice online.



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