Recovery of money refers to the legal process through which a person (creditor/plaintiff) seeks to recover a legally enforceable debt or monetary claim from another person (debtor/defendant) by invoking judicial remedies.
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Recovery of money refers to the legal process through which a person (creditor/plaintiff) seeks to recover a legally enforceable debt or monetary claim from another person (debtor/defendant) by invoking judicial remedies. Such claims may arise from contractual obligations, loans, commercial transactions, dishonoured cheques, or other legally recognized liabilities.
In India, the substantive right to recover money primarily emanates from statutes such as the Indian Contract Act, 1872, the Negotiable Instruments Act, 1881, and other applicable civil laws. The procedural framework for enforcement of such rights is governed by the Code of Civil Procedure, 1908 (CPC). However, with the enactment of the Bharatiya Nagarik Suraksha Sanhita, 2023 (BNSS), certain procedural aspects relating to criminal liability, enforcement, and recovery—particularly in cases involving offences such as cheating, criminal breach of trust, or dishonour of cheque—are addressed within the criminal justice system.
Under BNSS, courts are empowered to ensure compensation and restitution to victims in appropriate criminal cases. The court may direct the accused to pay compensation to the complainant for any loss or injury caused by the offence. Additionally, where a fine is imposed, the court may order that the whole or any part of such fine be applied towards compensating the victim. These provisions strengthen the victim-centric approach by facilitating monetary recovery alongside criminal prosecution.
Furthermore, BNSS provides mechanisms for the attachment, seizure, and disposal of property during the course of investigation or trial, which may indirectly assist in securing the recovery of money. In appropriate cases, courts may also pass orders for interim custody or disposal of property to protect the interests of the rightful claimant.
It is pertinent to note that recovery of money as a primary relief lies within the domain of civil law, and criminal proceedings under BNSS are generally invoked where elements of criminality—such as fraud, cheating, or misappropriation—are present. Accordingly, an aggrieved party may pursue parallel remedies, including the institution of a civil suit for recovery as well as initiation of criminal proceedings, depending upon the nature of the transaction and the conduct of the defaulting party.
In conclusion, while BNSS, 2023 does not supplant civil recovery mechanisms, it plays a significant role in ensuring compensation, restitution, and enforcement of monetary claims arising from criminal acts, thereby providing an additional legal remedy to aggrieved persons.
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