In short. Ignore a legal notice and nothing happens by itself. There's no fine for not replying. The debt doesn't get paid on its own either. The next move is yours. For most business dues of Rs 3 lakh or more, that means Section 12A mediation and then a commercial suit, quite often a summary suit. This is for suppliers, service firms and lenders whose notice period has expired. Plan your next step within two weeks of the deadline. A legal notice doesn't stop the limitation clock, and the days keep running while you wait.
Is this your situation?
- The 15 days in your notice ran out last week. Not a word from the other side.
- The speed post came back with "refused" scrawled across it. Or "unclaimed", or "left".
- They clearly saw it on WhatsApp. All you got back was "will call you", and they never did.
- You can't decide whether to send another notice or just go to court.
- You're wondering if their silence helps you, or whether they can still spring a defence on you later.
- Some of your invoices are nearly three years old now, and that's starting to worry you.
- The debtor is a company, a government department or a firm in another city, and you've no idea which forum is right.
Your legal notice was ignored. What happens now?
By itself? Very little. In a civil recovery matter nobody is obliged to reply to a legal notice, and there's no penalty for ignoring one. The debtor isn't treated as having admitted the debt. No court even knows the notice exists. It's a formal demand from you to them, and once its deadline passes, what happens next is your call.
Still, it wasn't wasted. If it was properly served, it fixes the date of your demand, and where the contract says nothing about interest, it can start interest running too. It records what you claimed and why. When the case reaches court, the judge will read it. The judge will also notice that the debtor had nothing to say back then. That silence counts as evidence. It isn't proof.
So stop waiting to see what the debtor does. The real decisions are yours: which forum, how soon, and how you use the notice and the silence once you're there. For most business dues that means mediation under Section 12A of the Commercial Courts Act, 2015, and then a suit. But what you're holding can open other doors. A cheque, say, or an MSME registration, a big claim against a company, an arbitration clause.
Does no reply mean they've admitted the debt?
No, not legally. Silence isn't an admission, and a debtor who ignored your notice can still put up a full defence once you sue. What silence does is make certain defences look like afterthoughts. Picture a buyer who took eleven consignments, got a notice listing every single invoice, and said nothing about quality or short supply. A year later its written statement says the goods were defective from day one. A court will look hard at that.
It counts most in a summary suit. There, the defendant has to ask for leave to defend and show a real, substantial defence. The court asks whether the defence is believable or just a way to buy time, and how the debtor behaved earlier is part of that. Suppose a defence first surfaces in the leave application, after the debtor ignored your notice, a reminder and a mediation notice. It carries far less weight than one raised in writing when the goods arrived.
Don't oversell it to yourself, though. A debtor with a genuine dispute won't lose it just because it was too busy, or too badly advised, to answer your notice. Think of a written rejection of goods, a counter-claim for delay, or a signed agreement that payment fell due only on some later event. Your claim still has to stand on its own papers.
Check first: was the notice actually served?
You can't hold silence against a debtor that never got the notice. So before reading anything into it, look at your proof of delivery. For speed post or registered post, download the tracking report from the India Post site and save it as a PDF that same day. Tracking history doesn't stay online forever. For courier, ask for the proof of delivery with the receiver's name or stamp, and for email, keep the sent copy with full headers and any read receipt you got. Blue ticks on WhatsApp are good back-up. They shouldn't be your only proof.
If the envelope comes back, read what the postman wrote on it. "Refused" counts as service, because the debtor chose not to take it. "Unclaimed" after intimation is usually treated as served too. That rests on the presumption in Section 27 of the General Clauses Act, 1897 that a properly addressed, prepaid registered letter is delivered in the ordinary course of post. "Left", "no such person" or "address incomplete" are another story. They suggest the debtor has moved. Find a better address before you do anything else.
Advocate B.K. Singh asks clients to leave a returned envelope sealed, exactly as it came back, and bring it in with the tracking printout. The endorsement on the cover is your proof. Tear it open and pull the notice out, and the debtor can claim the cover held something else. If the debtor is a company, look up its registered office on the Ministry of Corporate Affairs master data and its principal place of business on the GST portal. Send the notice to both.
What the ignored notice has already done for you
In many cases it's started interest. Section 3 of the Interest Act, 1978 covers debts not payable at a fixed time under a written instrument, and for those the court may allow interest from the date given in a written notice saying interest will be claimed. If your notice named that date, it's now on record. Where your invoices or contract already fix the due date and the rate, the notice adds less on interest. It still records the demand.
It's also locked in your figures. The amount in the plaint should match the notice. If it doesn't, explain why: more invoices since, payments received after the notice, interest worked out to a later date. A plaint claiming a very different sum from the notice will raise eyebrows.
What it hasn't done is stop the limitation clock. We see this misunderstanding more than any other. A legal notice doesn't extend the three-year period under the Limitation Act, 1963. Only two things give you a fresh period: a written acknowledgment signed by the debtor (Section 18), or a payment on account (Section 19), made before time runs out. When an ignored-notice file reaches Advocate B.K. Singh, the first thing he calculates is the last date for filing. Clients have often been sitting tight for a reply, as if the notice had paused time. It hadn't. Our guide on the time limit to recover unpaid dues shows you how to find that date, invoice by invoice.
What to check before you pick the next step
- How much is due in total. Rs 3 lakh or more means commercial court and Section 12A mediation. Less means the ordinary civil court.
- Whether you've got a written contract, a signed balance confirmation, an acknowledgment or a cheque. Any of those can make a summary suit possible.
- Whether there's an arbitration clause in the contract or the PO. If there is, you're in a different forum altogether.
- If you're holding a bounced cheque, the date on the return memo. The cheque bounce timetable is fixed, and it's short.
- Your Udyam registration, if you're a micro or small enterprise. That's what gets you into the MSME Facilitation Council.
- Whether the debtor is a company or LLP with a default of Rs 1 crore or more, which is the threshold for insolvency proceedings.
- The date of your oldest unpaid invoice, and of the last acknowledgment or part payment. Those two fix the limitation date.
- Whatever you know about the debtor's assets: bank accounts, property, money its customers owe it, stock, and any sign that things are being shifted.
What do you do once the notice period runs out?
For most suppliers and service providers with a claim of Rs 3 lakh or more, you apply for pre-institution mediation under Section 12A, and if the debtor still won't settle after that, a commercial suit follows. Hold a written contract, an acknowledgment or a cheque, and that suit can usually be a summary suit under Order XXXVII of the Code of Civil Procedure, 1908. It moves faster, because the debtor needs the court's leave before it can defend at all.
Sometimes you can't wait. The debtor is selling off stock, say, or emptying its accounts. Then you can file the suit straight away with an application for attachment before judgment or an injunction, and skip mediation. But the court decides urgency from the plaint itself, and it won't accept urgency dressed up to dodge mediation. You need real facts for this one.
Under Rs 3 lakh, or where the dispute isn't commercial (a personal loan to a friend, for instance), there's no compulsory pre-institution mediation. You file an ordinary civil suit in the district court, at Tis Hazari, Saket, Karkardooma or wherever it belongs. How the notice and the suit fit together for business claims is on our page about legal notices for recovery of business dues.
From an ignored notice to a decree: the usual path
Most business recovery matters take this commercial court route once a notice is ignored. Each stage has its own paperwork. So get the next one moving while you're still waiting on the current one.
Pin down the figures and the limitation date
Match your ledger against the bank statement. List every unpaid invoice with its due date, and work out interest to the day you'll file. Write down the last filing date for the oldest invoice.
Apply for Section 12A mediation
The application goes in the prescribed form to the District Legal Services Authority, or whichever authority is designated for that court. Attach a short statement of the claim and a copy of your notice. Forms and fees are on our pre-institution mediation page.
Mediation notice, final notice, non-starter report
The authority sends the debtor a notice to appear and agree to mediate. No response, and a final notice goes out. If the debtor still stays silent or says no, the authority records the mediation as a non-starter and gives a report. That usually takes a few weeks.
Draft and file the plaint
The suit goes in with every document, the statement of truth, the mediation report and the ad valorem court fee. If your documents allow it, file a summary suit. If not, a regular commercial suit.
Get the summons served
The court sends summons by post, courier and email. Expect strictness. Commercial courts are particular about serving companies at their registered office. If the debtor dodges service, ask for substituted service, by publication or by affixing it at the premises.
Defence, or none
In a summary suit the debtor has 10 days to enter appearance, and then 10 days from the summons for judgment to ask for leave to defend. In a regular commercial suit it gets 30 days for a written statement, which can stretch to 120 days and no further.
Decree and execution
If leave to defend is refused, or the debtor never shows up, the court passes a decree. If leave is granted, the suit goes to trial. Once there's a decree, it's executed against the debtor's bank accounts, property and receivables.
If they ignore the mediation notice as well
Plenty do. A debtor that ignored a lawyer's notice will quite likely ignore one from the Legal Services Authority too. The Commercial Courts (Pre-Institution Mediation and Settlement) Rules, 2018 set the sequence. First comes a notice asking the other side to appear and consent within a short time. Then a final notice. If that goes unanswered, or the debtor refuses, the mediation is marked a non-starter and both sides get a report. Courts have treated a debtor's refusal to take part as satisfying Section 12A. Once you hold the report, you can file.
Keep copies of every notice the authority sent, and the report, because your plaint has to show Section 12A was complied with. Time in mediation doesn't count towards limitation. Some breathing room, then, if you're near the three-year mark. Don't build your plans on it. If the oldest invoice is a few weeks from limitation, ask a lawyer about filing first with an urgent relief application, if the facts genuinely support one.
And if the debtor does come to mediation, take it seriously. A settlement recorded there has the status of an arbitral award, enforceable like a decree. Frankly, it's often the quickest money a creditor sees in the whole process.
Why a summary suit fits an ignored notice
Order XXXVII was made for debtors with no real answer. It covers debts and liquidated demands arising on written contracts, bills of exchange, cheques and promissory notes. After the summons is served, the debtor has 10 days to enter appearance. You then serve a summons for judgment. From that point the debtor has 10 days to apply for leave to defend and show a substantial defence.
If it doesn't appear at all, you're entitled to a decree. If it appears with a thin defence, the court can refuse leave and decree the suit. Or it can grant leave only if the amount, or some of it, is deposited first. How courts decide leave to defend was set out by the Supreme Court in IDBI Trusteeship Services v. Hubtown (2016). A debtor that ignored your notice and has nothing on paper to back a dispute usually sits in the weakest category.
Which documents qualify is explained on our summary suit page. For the decree that follows when the debtor stays away, read our guide on what happens if the defendant does not appear in a summary suit.
Time and costs after an ignored notice, by route
| Route or stage | When it fits | Typical time | Costs other than the lawyer's fee |
|---|---|---|---|
| Section 12A mediation | Commercial claims from Rs 3 lakh up, unless urgent relief is being asked for | A few weeks when the debtor stays away. Up to 3 months (2 more with consent) when it takes part | Application and mediation fees under the 2018 Rules (confirm the current schedule) |
| Summary suit (Order XXXVII) | A fixed sum resting on a written contract, acknowledgment, cheque or promissory note | Often 4 to 12 months to a decree when leave is refused. Longer once leave is granted | Ad valorem court fee on the claim (confirm the current schedule) |
| Regular commercial suit | Proof that's mostly emails, invoices and delivery papers, or a claim with damages in it | Commonly 18 months to 3 years | Ad valorem court fee, plus witness and document costs |
| MSME Facilitation Council | A registered micro or small supplier chasing a buyer | Conciliation first, then arbitration. The Act aims at 90 days. In practice it often runs longer | No court fee. Modest document costs |
| Insolvency demand notice (IBC Section 8) | A company or LLP that owes Rs 1 crore or more, with no real dispute | 10 days for the debtor to answer. Admission can take months | NCLT filing fee (confirm the current figure) |
| Executing the decree | After any decree or award | 6 months to a year or more, depending on what assets there are | Process fees, attachment and sale costs |
Other routes when the notice is ignored
A bounced cheque. If yours was a cheque bounce notice under Section 138 of the Negotiable Instruments Act, 1881, silence has an exact legal effect. The drawer had 15 days from receiving the notice to pay. When those 15 days pass with no payment, the offence is complete, and you then have one month to file the complaint before the magistrate. That timetable is strict, and it works differently from a civil notice. chequebouncelawyer.com goes into it properly. A civil suit for the same money can run alongside.
A registered MSME supplier. A micro or small enterprise can file a reference with the MSME Facilitation Council under Section 18 of the MSMED Act, 2006. Under Sections 15 to 17 it can claim interest at three times the bank rate notified by the Reserve Bank. There's no court fee. And before a buyer can challenge an award, it has to deposit 75 percent of it.
A company debtor owing Rs 1 crore or more. An operational creditor can send a demand notice under Section 8 of the Insolvency and Bankruptcy Code, 2016. It's not the same document as your legal notice, and it has to be in the prescribed form. If the debtor neither pays nor points to a pre-existing dispute within 10 days, the creditor can apply to the NCLT under Section 9. Since Mobilox Innovations v. Kirusa Software (2017), any genuine dispute raised before the notice sinks the application. So this route only suits clean debts. It's a heavy step, too, one that can tip the company into insolvency. ncltlawyers.in explains how it works.
An arbitration clause. If your contract has one, what usually follows the legal notice is a notice invoking arbitration under Section 21 of the Arbitration and Conciliation Act, 1996. Not a suit. File a suit despite the clause and it'll usually be sent to arbitration if the debtor asks.
When they reply late, or reply with a dispute
Sometimes a reply turns up after the deadline, often once you've already applied for mediation. Read it carefully. A late reply that admits the invoices and asks for time is an acknowledgment. If it's signed and arrives before limitation expires, it gives you a fresh three years, and it may open up a summary suit. Don't reject it in a temper. Answer with a short letter proposing a payment schedule with dates, and keep the mediation going alongside.
A reply that raises a dispute for the first time (bad quality, short supply, delay penalties) needs a calm, specific answer. Point to the delivery challans and goods receipt notes, and to the plain fact that nobody complained at the time. And mention the TDS the debtor deducted on your invoices, which sits awkwardly with any claim that the goods were rejected. Keep it short. A long rejoinder just hands the debtor more to pick at. Your real answer belongs in the plaint.
If the reply makes a sensible part-offer, weigh it in rupees, not pride. A commercial suit costs time and money even when you win. And the commercial version of Section 35 of the Code of Civil Procedure lets the court consider, when it decides costs, whether a reasonable offer to settle was unreasonably turned down.
Mistakes creditors make once a notice is ignored
- Sending notice after notice. One short reminder is fine. A third and fourth notice tell the debtor you won't act, and they do nothing at all for limitation.
- Treating the notice as a pause button. The three-year limit keeps ticking. Six months spent waiting for a reply that never comes can cost you your oldest invoices.
- Skipping Section 12A mediation. Where a commercial claim had no genuine urgency, courts have thrown out plaints filed without it.
- Suing at the old address. If the notice came back marked "left", track down the current registered office or place of business before filing. Otherwise service of summons can stall for months.
- Doing all the negotiating on the phone. If the debtor rings after the notice and promises to pay, send an email that same day confirming the call. An email back agreeing with your summary can be an acknowledgment.
- Threatening a police case to squeeze out payment. An unpaid invoice is a civil matter. A complaint filed just to pressure the debtor rarely gets money back, and the court may not think well of it.
Government departments, shut businesses and debtors in other cities
Government departments and public authorities are a special case. Before suing the government, or a public officer for something done in official capacity, Section 80 of the Code of Civil Procedure requires a notice and a two-month wait, unless the court allows urgent filing. Departments often don't reply to these notices at all, and the suit simply follows once the two months are up. Our guide on recovering dues from a government department or PSU covers the extra steps, including the internal payment procedures that often explain why nobody answered.
Sometimes the notice was ignored because the business has closed. Then the question isn't how to get a reply. It's what's left to recover from. Check whether the debtor is a proprietorship, a partnership or a company, since that decides whose assets a decree can reach. If it's a company that has gone quiet and seems to be avoiding you, our guide on the ways to recover money from a company that is avoiding you covers what works against companies in particular.
If the debtor is in another city, the notice doesn't change, but where you sue needs some thought. You can usually sue where the debtor carries on business, or where any part of the cause of action arose. In supply disputes that can include your own city.
An invented example: eleven invoices and a refused envelope
This is made up, to show how the pieces connect. A corrugated box maker in Noida has supplied a Delhi FMCG distributor for two years. By March, eleven invoices worth Rs 23.6 lakh are unpaid. Back in January the distributor's accountant signed and stamped a balance confirmation on the box maker's letterhead. The box maker's lawyer sends a legal notice by speed post and email, demanding the amount with 18 percent interest (the rate printed on the invoices) within 15 days. The email gets opened. The speed post comes back marked "refused".
The box maker keeps that envelope sealed and applies to the District Legal Services Authority for Section 12A mediation. The distributor ignores the notice, then the final notice. About five weeks later a non-starter report issues. The box maker files a summary suit in the commercial court with the invoices, the delivery challans, the signed balance confirmation, the refused envelope, the email proof and the non-starter report.
The distributor appears and applies for leave to defend. For the first time, it says several consignments arrived damaged. It has no earlier complaint, no debit note, no email to back that up. And it deducted TDS on all eleven invoices. None of these facts are real. They're here to show how an ignored notice and mediation feed into the suit. In a real case, whether leave is refused, granted on deposit or granted freely depends on how the court sees the defence.
What to do this week
Download the postal tracking reports and save them. Put the returned envelope away, unopened. Write down the last filing date for your oldest invoice. Then use the checklist above to pick a route, and if it's the commercial court, apply for Section 12A mediation now. Not after one more reminder. If the debtor phones with promises, get them in writing. Our guide on debtors who keep promising to pay explains how to turn those promises into acknowledgments you can actually use. If you'd prefer the notice process handled formally, our page on legal notice for recovery explains how we run it from notice to filing.
If you'd like your notice, postal proof and invoices looked at before you decide what comes next, share them with Advocate B.K. Singh's team through the contact page.
Frequently asked questions
Is it compulsory to reply to a legal notice for recovery of money?
No. There's no legal duty to answer a civil notice, and staying quiet carries no penalty. The catch for the debtor comes later. Defences it raises for the first time in court can look like afterthoughts.
How many days should I wait after a legal notice before filing a case?
Let the period in your notice expire first, usually 15 to 30 days, and then move. Commercial claims go to Section 12A mediation next. Cheque bounce runs on its own clock: 15 days for payment, then one month to file the complaint.
Can I send a second legal notice if the first is ignored?
Yes, and a short reminder does no harm. It won't buy you more time on limitation, though, and it rarely makes the debtor pay. Mediation or a suit is usually the better next move.
What if the legal notice came back marked refused?
Refusal by the addressee generally counts as service. Don't open the envelope. Keep it sealed with the postman's endorsement, print the online tracking report, and file both with the case.
Does sending a legal notice stop the limitation period?
No. Limitation keeps running after the notice, three years as usual. A fresh period starts only if the debtor signs a written acknowledgment, or makes a part payment, before time is up.
Can the debtor still defend in court if it ignored my notice?
Yes. Ignoring you isn't the same as admitting the debt, so it can still contest the suit. A defence that first appears in court, with nothing on record from earlier, tends to be viewed with suspicion. That's especially true in a summary suit.
Is a legal notice sent on WhatsApp valid?
WhatsApp or email can show that the debtor knew about your demand, which is useful. We'd still send it by speed post and email as well, since postal records and emails are easier to prove in court.
What if the debtor replies after I've filed the case?
Nothing stops. The suit continues. A reply admitting the debt or offering payment helps you, and it may end in a settlement recorded by the court. New disputes raised in it will be tested against your documents.
Advocate B.K. Singh
Founder of B.K. Singh & Associates. MCA, LL.B., LL.M. More than twenty years in practice before the Supreme Court, the Delhi High Court, district and commercial courts in Delhi NCR, and tribunals.
This guide explains the law in general terms and is not legal advice. For advice on your own papers, contact the team.