A defaulted loan to a relative, a supplier who never paid your invoice, a cheque that bounced, a business partner who walked off with your share - unpaid money is one of the most common reasons Pakistanis go to court. The good news is that the law gives you a clear route to a binding order, and in the right cases a genuinely quick one. This guide walks through the recovery suit from start to finish: which court, which procedure, what it costs, how long you have, and how you actually collect after the judgment.
What a recovery suit is
A recovery suit - formally a suit for recovery of money - asks a civil court to declare that the defendant owes you a definite sum and to pass a decree ordering him to pay it, usually with interest and costs. It is governed by the Code of Civil Procedure 1908 (CPC). The claim must normally be for a liquidated amount - a fixed, ascertainable figure, not a rough guess. If your loss is unquantified or you are seeking compensation for a wrong, that is a different action; see our guide to the suit for damages and compensation.
Before you file, it is almost always wise to send a formal demand. A well-drafted legal notice often produces payment without litigation, and it strengthens your case if the matter does reach court.
Two routes: ordinary suit vs summary suit
There are two procedural tracks. Choosing the right one is the single most important decision in a money-recovery case.
| Feature | Ordinary recovery suit | Summary suit (Order 37) |
|---|---|---|
| Governing law | CPC 1908 (general) | Order 37, CPC 1908 |
| When it applies | Any money claim, oral or written | Cheques, promissory notes, bills of exchange, written contracts for a fixed debt |
| Defendant's right to defend | Defends as of right | Must first obtain leave to defend |
| Speed | Slower - full trial | Faster - decree if no genuine defence |
| Best for | Disputed debts, oral loans | Clear, documented debts |
The summary suit exists to stop a debtor stalling on an obvious debt. If your claim rests on a signed cheque or contract, Order 37 is usually the stronger, faster choice.
How the Order 37 summary suit works
Order 37 applies to suits on negotiable instruments and on written contracts where you seek only a fixed sum of money. The defendant is not allowed to contest the claim automatically. The procedure runs like this:
| Stage | What happens |
|---|---|
| 1. Plaint | You file a plaint stating it is under Order 37 CPC, with the instrument attached. |
| 2. Summons for judgment | The court serves a special summons; the defendant must enter appearance within ten days. |
| 3. Leave to defend | To contest, the defendant applies by affidavit within ten days, disclosing a genuine defence. |
| 4. Court's decision | Leave may be granted unconditionally, on terms (e.g. depositing security), or refused. |
| 5. Decree | If leave is refused or not sought, the court decrees the claim straight away. |
Because a defendant with no real answer cannot simply drag out proceedings, a well-documented Order 37 claim - a bounced cheque being the classic example - can produce a decree far faster than an ordinary suit. Note that recovering the money is a civil matter; any criminal complaint for cheque dishonour runs separately and does not itself put cash in your hand.
Which court hears your suit
The correct forum depends on who is claiming and how much. Filing in the wrong court wastes months, so confirm jurisdiction before you file - see our note on civil court jurisdiction.
| Nature of claim | Forum |
|---|---|
| Private money claim (individual to individual/business) | Ordinary civil court - Civil Judge, by pecuniary limit |
| Claim on a cheque / promissory note / written contract | Civil court on the Order 37 track |
| Recovery by a bank or financial institution | Banking Court under the Financial Institutions (Recovery of Finances) Ordinance 2001 |
The Financial Institutions (Recovery of Finances) Ordinance 2001 gives Banking Courts exclusive jurisdiction over loan and finance recoveries - an ordinary civil court cannot hear them. If a bank is chasing you, or you are dealing with a defaulted finance, our banking and financial legal services team can advise.
Court fee and limitation
Two numbers decide whether your suit even gets off the ground: what it costs to file, and how long you have to file it.
| Item | Rule | Governing law |
|---|---|---|
| Court fee | Ad valorem - a percentage of the amount claimed; larger claims cost more | Court Fees Act 1870 |
| Limitation | Generally 3 years from the date the cause of action arose (e.g. date of default or dishonour) | Limitation Act 1908 |
| Deficient fee | Must be made good in time - or the suit can become time-barred | Court Fees Act 1870 |
Because provincial amendments and slabs change the exact percentage, treat any figure you read online as indicative only. Estimate your outlay with our court fee calculator, and for the deadline traps read our guide to limitation deadlines in Pakistan. Miss the three-year window and even an undisputed debt can be lost.
Step by step: filing your recovery suit
The broad path from complaint to decree looks like this - for the full civil roadmap see civil suit procedure from plaint to decree:
| Step | Action |
|---|---|
| 1 | Gather evidence - the cheque, agreement, ledger, WhatsApp/emails, receipts. |
| 2 | Send a legal notice demanding payment within a set period. |
| 3 | Draft the plaint - ordinary or under Order 37 - and pay the ad valorem court fee. |
| 4 | File in the correct court; summons is issued to the defendant. |
| 5 | Defendant appears (and, under Order 37, seeks leave to defend). |
| 6 | Framing of issues, evidence and arguments (ordinary suit) or decree (undefended Order 37). |
| 7 | Judgment and decree; then execution to actually collect. |
After you win: getting paid
A decree is a court order, not cash. If the debtor still does not pay, you file execution proceedings, where the court can attach and sell the debtor's property, attach bank accounts or salary, and in some cases order arrest and detention. Winning the suit is half the battle; a realistic recovery strategy also asks whether the debtor actually has attachable assets before you spend money litigating.
Frequently asked questions
What exactly is a recovery suit?
A civil suit under the CPC 1908 asking the court to order a defendant to pay a definite sum of money owed to you, with interest and costs, and to pass a decree you can then enforce.
What is the Order 37 summary suit?
A fast-track procedure for money claims on cheques, promissory notes, bills of exchange and written contracts. The defendant must obtain the court's leave to defend within ten days, so clear debts are decreed quickly.
How long do I have to file?
Generally three years from when the cause of action arose, under the Limitation Act 1908. Filing after the deadline can bar the claim, so act early.
How much is the court fee?
It is ad valorem under the Court Fees Act 1870 - a percentage of the sum claimed. Exact rates vary by province and slab, so confirm before filing or use our court fee calculator.
Can I recover a bounced cheque through court?
Yes - a dishonoured cheque is a classic Order 37 claim. You can sue for the amount plus interest; any criminal complaint for dishonour runs separately from the civil recovery.
What if the debtor is a bank borrower?
Bank and financial-institution recoveries go to Banking Courts under the Financial Institutions (Recovery of Finances) Ordinance 2001, which have exclusive jurisdiction over such disputes.