• Legal notice for recovery

I was working in south indian gold loan company . i joined in 2011 on joining campany execute agreement that i am responsible for paying any loss if occured in future and also gave my father suruty supported by my house property.

 iam posted in ludhiana on dec 2011 during audit one gold packet missing during day timing . campany make responsible me and branch manager for loss as i am the custodian of keys. company file case for misappropation of gold under section 409 and 120b. i face police investigation. and in 2012 i got clear chit from police and police make manager responsible 
after 2012 company send me notice for payment of rs. 500000 and i gave written reply to company to deny payment as i am clear from police and not committed any mistake
now on 21/10/2018 after 7 year of this incident company send me a legal notice through his lawyer to pay Rs. 500000 with 24% interest from 23/11/2011 . 
if i will not pay they will file case and attach my property . 
i want to know can company file case against me after 7 year of incident and company lawyer is from kerela can company file case in kerela. 
i am very much afraid about my this
one lawyer suggest me that i have to file counter case against company. otherwise i have to go kerela for context case 
sir i am looking for your good advise what will i do i belong to a very poor family and not able to pay that much of amount.
please help me
Asked 4 years ago in Labour

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8 Answers

Company can file case in Kerala but you have to take the plea that claim is barred by limitation .

2) you have to send reply to legal notice deny your liability to make payment

3) your personal presence is not necessary in court on each date . Your lawyer can appear on your behalf

Ajay Sethi
Advocate, Mumbai
87947 Answers
6207 Consultations

5.0 on 5.0

Dear Sir,

You need not pay anything because any money due to be recovered within three years on that principle you may protect yourself besides police report in your favor. Better you engage any experienced lawyer if any case is filed.


Limitation for a Suit for Money

Article 24: (Art. 62 of the Act of 1908):

The period of limitation for a suit for money payable by the defendant to the plaintiff for money received by the defendant for the plaintiffs use is three years and the time of limitation starts to run when the money is received.

Article 24 applies where the defendant may be said to have held the money in trust for the plaintiff. Art. 24 applies to ‘suits for money had and received’. Such suits arise where money is payable forthwith to the plaintiff.

Article 24 applies to recover the money payable under Section 65 of the Contract Act. Under Section 65 of the Contract Act, the cause of action to recover the consideration arises when the agreement is discovered to be void and the time would commence to run from the date of agreement.

The Art. 24 does not apply when the defendant is not liable to pay over the money to the plaintiff as soon as it is received and the money is payable after a particular period. It will not apply where accounts are required to be rendered. The suit for recovery of excess amount of freight recovered by the defendant from the plaintiff attracts Article 24.


The expression “money received by the defendant for the plaintiffs use” in Article 24 does not mean that when the money was received by the defendant, the defendant must have intended to receive it for the plaintiffs use either expressly or by necessary implication. The fact that the defendant received the money, which on the date of receipt did not belong to him in the eye of law but belonged to the plaintiff, Art. 24 will be attracted.

In Hansraj v. Ratni, (13 ALJ 494), it has been held that a suit by the plaintiff against his ex-agent for money realised by the latter after the termination of the agency falls under Section 24.

In Labh Singh v. Courts of Wards, (AIR 1945 Lah. 210), it has been held that a suit for the return of money paid in advance under a contract of sale is governed by the Art. 24 and not by Article 47.

In Hans Raj v. Official Liquidators, (AIR 1933 PC 63), it has been held that an amount paid by the plaintiff under a void agreement is recoverable as money had and received under Section 24 and time runs from the date on which the agreement is discovered to be void.


In Venkataraman & Co. v. State of Madras, (AIR 1966 SC 1089), it is held that when the money has been paid under a mistake of fact or law, a suit for its recovery will not fall under Article 24 but under Art. 59 of the Limitation Act, 1963.

In Panjatan Ahmed v. Najatannessa, (AIR 1952 Cal. 230), it is held that a suit- for recovery of money realised by a de facto guardian is governed by the Article 24.

Under Art. 24, the limitation would run from the time when the money was received and not when the money was demanded.

Netravathi Kalaskar
Advocate, Bengaluru
4952 Answers
27 Consultations

4.8 on 5.0

Hi, there is nothing to worry ..It is advisable to avoid any court summons .. Do company official know about your current address ?

Hemant Chaudhary
Advocate, Gurgaon
4619 Answers
67 Consultations

4.9 on 5.0


No, the company can not file any case.

Tender a reply to the legal notice at the earliest as the police has already given you a clean shit.

they can not attach the property without a direction from the court.

The court will not give direction without hearing you.


Anilesh Tewari
Advocate, New Delhi
17940 Answers
377 Consultations

5.0 on 5.0

A legal notice is merely a warning which lists down the conditions to be followed by the receiver of the notice and intimates the receiver that on non-fulfilment of the conditions of the legal notice he will have to face legal notice initiated by the sender of the legal notice.

Your lawyer suggestion is correct.

Mohammed Mujeeb
Advocate, Hyderabad
19031 Answers
32 Consultations

4.5 on 5.0

Sir the demand is barred by limitation firstly secondly the company cannot make you liable for the act in which you are exonerated in the investigation. so even if they file a case same is not maintainable.

Further case cannot be filed in kerela and they without court order cannot attach your property,

Sir kerela court has no jurisdiction in case give a notice cum reply, deny all the allegations engage an advocate to draft notice-cum-reply and further give notice to pay for mental harassment.

Don't worry you don't have to pay such amount you are not responsible for.

Shubham Jhajharia
Advocate, Ahmedabad
25516 Answers
179 Consultations

5.0 on 5.0

Dear Client,

Case will file where incident occurred but case barred by limitation. Don`t worry.

Yogendra Singh Rajawat
Advocate, Jaipur
21481 Answers
31 Consultations

4.4 on 5.0

Basically the claim is barred by limitation

Secondly ther is no proof that you have misappropriated the amount or things, hence it is not maintainable.

Thirdly, your father should either transfer the proeprty to somebody's name or to obtain an injunction order agaisnt the company restraining them form attaching the proeprty without any valid reason.

Fourthly, you can fight the case properly if they prefer to go court because no such case is maintainable especially when you hav been cleared by police from the criminal case.

Whether you are filing a counter case or not, if they file a case in Kerala, then you may have to go to Kerala for challenging them.

T Kalaiselvan
Advocate, Vellore
78105 Answers
1543 Consultations

5.0 on 5.0

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