In business operations, it is quite common for contractual counterparties to delay payment or fail to fulfill their payment obligations under an agreement. Such situations can directly affect a company’s cash flow and overall business activities.
When amicable settlement efforts do not produce the desired results, businesses may consider initiating legal proceedings before a competent Court to protect their legitimate rights and interests.
This article provides the latest corporate debt recovery lawsuit petition template, along with guidance on the essential contents that should be included in the petition, the supporting documents that need to be prepared, and several important considerations when drafting a debt recovery lawsuit petition.
1. What is a corporate debt recovery lawsuit petition?
A corporate debt recovery lawsuit petition is a document prepared and submitted by a business entity entitled to claim payment (hereinafter referred to as the “Plaintiff”) to a competent Court, requesting the resolution of a dispute arising from the failure of the party obligated to make payment (hereinafter referred to as the “Defendant”) to perform, or fully perform, its payment obligations under a contract, agreement, or applicable laws.
The lawsuit petition is a mandatory document in the litigation dossier and constitutes one of the prerequisites for the Court to consider accepting and handling the case in accordance with civil procedure laws.
Pursuant to Clause 1, Article 189 of the 2015 Civil Procedure Code of Vietnam, any agency, organization, or individual initiating a lawsuit must prepare a lawsuit petition that complies with the form and content requirements prescribed by law.
2. Cases where a business should initiate a debt recovery lawsuit
2.1. The debtor has breached its payment obligations as agreed
The Plaintiff has the right to request the Court to protect its lawful rights and interests when the Defendant fails to perform or fails to fully perform its payment obligations under a contract, purchase order, debt reconciliation statement, or other lawful agreements between the parties.
Pursuant to Article 440 of the 2015 Civil Code, the buyer is obligated to make payment in full and in accordance with the agreed time, place, and method of payment.
Therefore, the failure to perform or the improper performance of payment obligations may give rise to civil liability and constitute grounds for the aggrieved party to request the Court to resolve the dispute and compel the breaching party to fulfill its payment obligations.
2.2. Negotiations and requests for performance of payment obligations have been made but have not been successful
Before filing a lawsuit, the parties often prioritize resolving disputes through negotiations in order to maintain their cooperative relationship and limit the incurrence of litigation costs.
The Plaintiff has sent payment demand letters, debt reminder letters, conducted debt reconciliations, or organized meetings to discuss a plan for payment of the debt.
However, the Defendant does not respond, the parties are unable to agree on a debt settlement plan, or the Defendant does not perform the commitments made during the negotiation process.
In this case, continuing negotiations often does not produce positive results, and filing a lawsuit is an appropriate legal measure to protect the lawful rights and interests of the party entitled to such rights.
2.3. A dispute arises regarding the debt or payment obligation
During the performance of the contract, the parties may have disputes relating to the amount payable, the payment deadline, the payment conditions, or the scope of each party’s obligations.
Where the dispute cannot be resolved through negotiation, filing a lawsuit will help determine the rights and obligations of the parties on the basis of evidence and legal provisions, and at the same time create a legal basis for the enforcement of the payment obligation after a judgment or decision of the Court takes legal effect.
3. Essential contents of a corporate debt recovery lawsuit petition under the Civil Procedure Code
Pursuant to Clause 4, Article 189 of the 2015 Civil Procedure Code, a lawsuit petition must contain the following essential information:
3.1. Date of the lawsuit petition
The lawsuit petition must clearly specify the date, month, and year on which it is made.
This serves as the basis for determining the time at which the Plaintiff exercises its right to initiate legal proceedings, and also assists in the assessment of the statute of limitations and other procedural matters during the course of the proceedings.
3.2. Name of the Court receiving the lawsuit petition
The lawsuit petition must clearly state the name of the Court having jurisdiction to resolve the case in accordance with the Civil Procedure Code.
Correctly identifying the competent Court is an important condition for the case to be accepted in accordance with the law.
If the Court’s jurisdiction is incorrectly identified, the case file may be returned or transferred to another Court for resolution, resulting in delays in the handling of the case.
3.3. Information of the Plaintiff
The lawsuit petition must fully set out the Plaintiff’s information, including the enterprise name, head office address, enterprise registration number, information of the legal representative or authorized representative, and contact information such as telephone number and email address (if any).
Where the parties have agreed on a contact address for receiving procedural documents, such address should be clearly stated in the lawsuit petition.
3.4. Information of the Defendant
The Plaintiff should provide complete and accurate information regarding the Defendant, including the enterprise name, head office address, enterprise registration number, legal representative, and other contact information (if any).
Where the place of residence, place of work, or head office of the Defendant is unknown, the Plaintiff should clearly state the Defendant’s last known place of residence, place of work, or head office address.
3.5. Information of persons with related rights and obligations (if any)
If there are other individuals or organizations whose rights and obligations are related to the debt in dispute, complete information regarding such persons or organizations should be included in the lawsuit petition.
Identifying all persons with related rights and obligations helps the Court resolve the case comprehensively.
3.6. Infringed lawful rights and interests and claims
The Plaintiff should clearly present the process of entering into and performing the contract, the basis for establishing the payment obligation, the value of the debt, the agreed payment deadline, the breaching acts of the debtor, and the lawful rights and interests that have been infringed.
At the same time, the Plaintiff should clearly state the claims brought before the Court for resolution, including: an order requiring payment of the principal debt, payment of late payment interest, compensation for damages incurred (if any), contractual penalties (if any), or other related obligations.
3.7. Information of witnesses (if any)
Where there are witnesses who have knowledge of the circumstances relating to the conclusion of the contract, the performance of payment obligations, or the confirmation of debts between the parties, the Plaintiff should clearly state the full name and address of such witnesses in the lawsuit petition.
This may serve as a source of evidence to assist the Court in clarifying the circumstances of the case when necessary.
3.8. List of attached documents and evidence
The Plaintiff should provide a complete list of the documents and evidence attached to the lawsuit petition to support its debt recovery claims.
Depending on the specific circumstances of the case, the litigation dossier may include the following documents:
- Enterprise Registration Certificate of the Plaintiff;
- Contract, contract appendices, or agreements giving rise to the payment obligation;
- Value-added tax invoices;
- Minutes of delivery and receipt of goods, acceptance minutes, or documents evidencing the performance of contractual obligations;
- Debt reconciliation minutes between the parties;
- Emails, messages, or correspondence relating to the debt;
- Official letters, notices, or payment demand documents sent to the obligor;
- Payment records or payment vouchers (if any);
- Power of attorney or documents evidencing the lawful representative capacity of the person signing the lawsuit petition (if the signatory is not the legal representative of the enterprise);
- Other documents and evidence relating to the establishment and performance of the payment obligation.
4. Key considerations when drafting a corporate debt recovery lawsuit petition
4.1. Determining the competent Court with jurisdiction
Before drafting a debt recovery lawsuit petition, an enterprise should accurately determine the Court having jurisdiction to resolve the case in accordance with Articles 35, 37, 39, and 40 of the 2015 Civil Procedure Code.
The determination of the Court’s jurisdiction is usually based on factors such as jurisdiction by subject matter, jurisdiction by level of adjudication, and territorial jurisdiction.
4.2. Determining the statute of limitations for filing a lawsuit
Pursuant to Article 319 of the 2005 Commercial Law, the statute of limitations applicable to commercial disputes is two (02) years from the date on which the lawful rights and interests are infringed, except in cases concerning exemption from liability for traders providing logistics services.
4.3. Present the facts objectively and with supporting legal grounds
When drafting a lawsuit petition, an enterprise should present the facts of the case truthfully and objectively based on the available documents and evidence.
The contents of the petition should focus on clarifying the circumstances giving rise to the debt, the payment obligations of the parties, the measures taken to request payment, and the breaches committed by the obligated party.
At the same time, the enterprise should avoid using subjective or emotional statements, as well as information that is not supported by evidence, in order to ensure the persuasiveness of the lawsuit petition and facilitate the resolution of the case.
4.4. Determine the scope of claims accurately and comprehensively
Before filing a lawsuit petition, an enterprise should review and accurately determine all claims to be submitted to the Court for resolution in order to maximize the protection of its lawful rights and interests.
In addition to claiming payment of the principal debt, the enterprise may consider claiming interest for late payment in accordance with Articles 357 and 468 of the 2015 Civil Code, as well as compensation for damages or other incurred costs (if any).
Accurately and comprehensively determining the scope of claims is important for determining the value of the dispute, the court fee advance, and the court fees that the enterprise may be required to pay in accordance with the law.
At the same time, it helps limit the need to amend or supplement claims during the proceedings, thereby contributing to the effective protection of the enterprise’s lawful rights and interests.
Initiating legal proceedings is one of the effective legal measures available to enterprises to protect their lawful rights and interests when a business partner fails to perform its payment obligations.
However, the effectiveness of the debt recovery process depends largely on the proper preparation of the litigation dossier, supporting evidence, and lawsuit petition in accordance with applicable legal requirements.
Therefore, before commencing legal proceedings, an enterprise should review all transaction documents, assess the relevant legal grounds, and develop an appropriate dispute resolution strategy in order to maximize the likelihood of debt recovery and safeguard its rights and interests.
Yours sincerely,
