Legal Notice For Dues Recovery Format


A legal notice is an important document that informs someone they owe you money and requests payment by a deadline, otherwise further legal action can be taken against them. Sending a formal legal notice is often the first step to recover unpaid dues or settlement of debts owed to you before approaching the court.

This blog post will provide a sample format and outline of how to draft an effective legal notice for the recovery of money and dues on behalf of a client. We will cover key sections to include, language to use, details to specify, consequences of non-payment, and next steps after sending the following legal notice for money recovery.

A legal notice serves as an official communication that:

  • Formally informs the other party that they owe you money.
  • Specifies the amount owed and reason for the dues.
  • Provides instructions and deadline for payment.
  • Warns of legal proceedings if payment is not received.

Some common situations when a legal notice may be sent for the recovery of money are:

  • Recovering loan or debt from an individual or company.
  • Settling unbilled or unpaid invoices for services rendered.
  • Recovering advance payments or deposits after a contract is cancelled.
  • Seeking employee settlement dues after termination/resignation.
  • Settling accounts after a partnership dissolves.

The notice provides an opportunity for the other party to amicably settle dues before court action. It creates a documented paper trail showing you attempted recovery on behalf of your client.

A legal notice follows a formal format and structure. Here are key sections to include:


The notice should be printed on the letterhead of the person or company sending it. This adds legitimacy and an official tone. Include name, address, phone numbers, email, website if any.


Date the notice at the top. The receipt date starts the countdown for the payment deadline.

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To Whom It May Concern

Address the notice to the person or company who owes you money. Use their full legal name and address.

Subject Line

Add a subject line summarizing what the notice is about, for example “Legal Notice for Recovery of Loan Dues”.


Start with a paragraph introducing yourself, your company and your relationship with the recipient. State that you are sending this legal notice on behalf of your client to recover an outstanding amount owed by the recipient.


Provide background of the situation – when did the debt arise, under what circumstances, what was the original amount, and how much is currently owed. Outline the terms and conditions that were mutually agreed upon and which have been breached.

Details of Amount Due

Specify the exact amount owed. Break it down into principal due, interest accrued, penalty if any, etc. State the calculation and how you arrived at the total payable. Provide supporting invoices, statements, or documentation.

Payment Instructions

Give clear payment instructions – who to make the payment to, bank details, mode of payment, etc. State the deadline by which payment must be received – usually 30 days from receipt of notice.

Notice as Per Law

State that this notice is being furnished as per provisions of applicable law which allows recovery of your dues – cite relevant sections or clauses. Use formal legal language like “under the provisions of” “in accordance with”, etc.

Consequences of Non-Payment

Warn the recipient that failure to make payment within the deadline mentioned will compel you to initiate legal proceedings for recovery as per law without any further notice. State that the notice may be used as evidence in the legal case.


Close the notice with your name, designation and signature as the authorized representative of the client. If you are a lawyer then mention that clearly.

Things to Remember

  • Use formal legal language and terminology without any colloquial expressions.
  • Maintain a matter-of-fact, unemotional tone without making accusations.
  • Provide supporting documents and evidence wherever possible.
  • Keep a copy of the notice and proof of delivery for your records.
  • Send the notice by registered post or courier to establish proper receipt. Email alone may not suffice.
  • Check with a lawyer to ensure the notice covers all legal requirements accurately.
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Below is a sample legal notice format with key elements covered:

Date: September 12, 2023


John Smith 123 Main Street City, State 12345

Subject: Legal Notice for Recovery of Loan Amount

Dear Mr. Smith,

This is to formally notify you that you have failed to repay the personal loan of $15,000 taken from ABC Lending Co. on 1st May 2021 vide loan agreement signed between yourself and our client.

As per the agreed repayment schedule, you were required to repay the loan in 10 equal monthly installments of $1,500 each by the 7th of every month. However, your repayments have been irregular and despite repeated reminders, the loan account has turned into a Non-Performing Asset. Three installment payments are overdue till date.

The total outstanding amount on your loan account as on 12th September 2023 is $4,500 (Principal $3,000 + Interest $1,200 + Penal Interest $300). You are hereby requested to pay the aforesaid amount in full and arrange for closure of the loan account latest by 12th October 2023, failing which our client shall be constrained to take legal recourse against you for recovery of the outstanding loan amount. This legal notice shall be used as evidence in the legal proceedings initiated henceforth.

We trust you will abide by the provisions of the loan agreement and make arrangements to settle the outstanding dues within the notice period, failing which we have clear instructions to file a suit for recovery against you on behalf of our client.

Please feel free to contact us for any clarifications in this regard.

Thank you for your attention to this notice.

Yours faithfully,


Ram Kapoor
Senior Legal Officer
ABC Lending Co.
[Contact Details]

This covers the key elements like amount due, supporting documents, payment deadline, consequences of non-payment, signatures, etc. While actual legal notices tend to have more formal language, this gives an outline of what to cover.

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Here are some consequences and outcomes after sending a legal notice for dues recovery:

  • It creates documented evidence that you attempted reconciliation and settlement of dues on behalf of your client. This strengthens your case if the issue reaches court later.
  • The notice triggers legal action. If payment is not received within the deadline, you can file a civil or criminal case citing the notice.
  • The notice puts pressure on the other party to settle dues to avoid legal proceedings. Many disputes get resolved at this stage.
  • If the debtor acknowledges the notice but needs more time, you may negotiate a payment plan and timeline.
  • The notice gives the debtor a chance to refute claims or settle discrepancies if any. Their reply can be used as evidence later.
  • Not sending a legal notice before filing a court case may weaken the case. The court expects parties to attempt settlement first.

Overall, a legal notice is an effective way to begin dues recovery proceedings in a structured manner and creates a paper trail for stronger legal recourse later if required.


Sending a legal notice is advisable as a first step to recover outstanding payments or settle disputes amicably before filing a court case. It gives formal notice about dues owed and reasonable time for payment. If payment is still not received after sending the notice, appropriate legal proceedings can be initiated citing the notice as evidence.

This blog post provided tips on drafting an effective legal notice, outlining key sections to cover, suggested text, tone, language to use, and a sample format that can be followed for the recovery of money. Properly framing a legal notice as per laws and having it delivered properly establishes grounds for future legal action if required on behalf of a client. We hope this guide will help you recover your client’s rightful dues through a professional legal notice.

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