One of my clients recently had a case which I am explaining below and if you are stuck in such similar situation, here is what to do.
Note: Due to attorney-client privilege, I cannot disclose complete case details or identify the actual parties involved. However, I am sharing the essential facts and legal approach so that if you find yourself in a similar situation, you can understand the available solutions and legal remedies.
TL;DR: When an internship stipend goes unpaid, you can recover the money through a strongly worded legal notice followed by a civil suit for breach of contract or a claim under the Payment of Wages Act. Preserving call recordings, emails, and the internship certificate is absolutely critical to winning the matter quickly.
Arjun Mehta had just wrapped up a three-month digital marketing internship with NetBreeze Digital, a small agency operating out of Pune. It was early 2025. The arrangement was simple — work from home, occasional field visits, a monthly stipend of ₹10,000. February’s balance and March’s full amount arrived on time. But April and May brought silence. ₹20,000 was due, and no one was answering his calls. He’d already moved back to Nagpur for his MBA, armed with an internship completion certificate and a growing pile of ignored WhatsApp messages. The HR manager stopped responding. The founder went cold. Arjun’s earlier attempt to involve a general practice lawyer didn’t produce results — the notice drafted was vague, and the lawyer wasn’t sure which forum to approach for a gig-style digital role. That’s when he approached the Chamber of Advocate Sudhir Rao. Advocate Sudhir Rao immediately spotted the contractual breach and the powerful evidence trail in Arjun’s hands. Emails, call recordings, and the certificate itself. A crisp legal notice was dispatched, and when the agency still didn’t pay, a civil recovery suit was filed before the Pune court. The matter concluded favourably — the unpaid stipend, along with interest and costs, was recovered. It didn’t take years. And here’s the thing, specific domain expertise in employment and contract disputes made all the difference.Key Facts of the Case
- Arjun Mehta interned at NetBreeze Digital, Pune, from 15 January 2025 to 15 April 2025. - Stipend: ₹10,000 per month. February balance and full March were paid. April and May — ₹20,000 — remained unpaid. - The internship certificate was issued, confirming the engagement and duration. - Multiple follow‑up calls, messages, and emails were ignored for over three months after the unpaid period. - Arjun retained call recordings, WhatsApp chats, and email threads documenting the promise to pay and the subsequent silence. - The agency had no physical office; all communication was remote, making digital evidence even more critical. - A legal notice initiated by Advocate Sudhir Rao’s office, followed by a civil suit, resulted in full recovery of the sum plus costs.The Direct Legal Answer
Unpaid internship stipends aren’t a grey area. An internship creates a contractual obligation. The employer must pay the agreed amount. When they don’t, the intern has multiple legal remedies. A legal notice under Order 37 of the Code of Civil Procedure (CPC) is the first step. If the money still isn’t paid, you file a summary suit for recovery of money. This type of suit is designed to be faster — the court can decree the payment without a lengthy trial if the defendant fails to show a triable issue. Alternatively, depending on the nature of the engagement, a complaint can be lodged under Section 15 of the Payment of Wages Act, 1936, if the intern is treated as an employee and the stipend qualifies as wages. The evidence makes the difference. With call recordings, messages, and the completion certificate, the court sees a clear breach of contract.
Advice in Such Cases
Consult with Lawyer: The very basic and important step to start is talk to Lawyer / advocate. You should not hesitate in paying his consultation fee i.e. might be in range of Rs. 10,000 to 50,000 depends case to case. He is helping you in this situation to come out. He is expert in the domain and can help you explain the procedure which you might have never explored. A good lawyer can get the issues resolved much faster than you think.
Don’t let the silence stretch. The longer you wait, the harder it gets to gather evidence and recall specifics. Send a formal demand email right now, even if it’s just a single line. Make sure every conversation you have after that point is recorded or saved. And be aware — this isn’t a routine civil recovery. It sits at the junction of contract and employment law, where procedural nuances often trip up general practitioners. An advocate who regularly handles wage and service disputes will know exactly how to frame the cause of action and pick the fastest forum. That alone can save months.
Applicable Sections of Law
- Section 73, Indian Contract Act, 1872: Compensation for loss or damage caused by breach of contract — the unpaid stipend is a loss directly flowing from the breach.
- Section 15, Payment of Wages Act, 1936: Provides for claims arising out of deductions or delays in payment of wages, with jurisdiction before the authority appointed under the Act.
- Order 37, Code of Civil Procedure, 1908: Summary procedure for recovery of a debt or liquidated demand, allowing a speedy decree without a full trial.
- Section 9, Code of Civil Procedure, 1908: Gives the civil court jurisdiction to try all suits of a civil nature, including money claims, unless expressly barred.
Limitation Period
Under the Limitation Act, 1963, the period for filing a suit to recover money is three years from the date on which the right to sue accrues. In these situations, that date is typically when the stipend becomes due and remains unpaid — here, the end of April or May 2025. The clock starts ticking. If you wait beyond three years without filing, your claim may be time‑barred and dismissed at the threshold. Condonation of delay isn’t readily granted for suits; you have to file on time. Counting days matters.
Interim Reliefs Available
While the main suit seeks a money decree, certain interim protections can prevent further loss. Under Order 38 CPC, you can apply for attachment before judgment if you have reason to believe the opposite party may dispose of or remove property to frustrate the eventual decree. In a case like this, where the agency has no office and is evading communication, an attachment order can exert real pressure. Though rare in small‑value stipend disputes, a well‑timed application can secure the claim and often pushes parties toward a quick settlement. Make no mistake, interim reliefs are a strategic tool, not an afterthought.
How Courts Typically Approach Such Cases
Civil courts in Pune — or any Indian city — see a steady flow of small money recovery suits. Judges look first for a clear contract and credible proof of non‑payment. When a plaintiff walks in with a signed internship certificate, consistent WhatsApp threads, and call recordings stating the owed amount, the court’s posture shifts. Summary suits under Order 37 CPC, in particular, put the defendant in a tight corner. They must seek leave to defend, and if they can’t show a triable issue, a decree follows within a few hearings. Courts tend to be sympathetic to young professionals who have evidence in order, but they will frown upon delay or sloppy documentation. A professionally drafted plaint that neatly ties the facts to contractual breach gets the result.
Timeline of Legal Process
- Demand notice — 1 to 2 weeks for response. Sometimes the money arrives here.
- Drafting and filing the plaint — 1 week once documents are ready.
- Summons and appearance — 2 to 4 weeks.
- Written statement / leave to defend — 15 to 30 days from summons.
- Issues and evidence — 4 to 8 weeks if trial is necessary; summary suits can skip this.
- Judgment and decree — 2 to 6 months from filing in a summary suit, longer if contested.
- Execution — if the money isn’t paid after decree, attachment proceedings add a few weeks to months.
Understanding the Costs
The total cost of a matter like this varies significantly from one case to the next — it depends on the complexity of the dispute, the forum involved, the number of hearings, and the specific facts of your situation. There is no single fixed figure that applies to everyone.
A professional advocate can give you an accurate estimate only after reviewing all your facts and documents in a consultation.
Can the Matter Be Settled Out of Court?
Absolutely. Settlement is often the smartest route. A legal notice itself can trigger payment without stepping into a courtroom. Mediation and conciliation are also available — even after a suit is filed, the court can refer the parties to alternative dispute resolution under Section 89 CPC. Pre‑litigation Lok Adalats can settle such claims quickly and with finality, though they handle matters by consent. The key is to show the other side you’re ready to go to trial if they don’t settle. And with strong evidence backing you, most rational parties won’t take that risk.
Common Mistakes People Make
- Waiting too long to act — the three‑year limitation clock never pauses, and memories fade.
- Deleting messages or call logs after the internship ends, thinking they won’t need them anymore.
- Filing a complaint without first sending a clear demand notice — a notice can resolve the issue without litigation.
- Approaching an advocate who does not regularly handle employment or contract disputes; domain‑specific experience ensures the right forum is chosen and critical evidence is not overlooked.
- Relying solely on verbal assurances during follow‑ups without documenting each interaction.
- Not preserving the internship certificate or any appointment letter, which are the best proof of the engagement and the promised stipend.
FAQs People Normally Have
Can I file a complaint if I was an intern and not a full‑time employee?
Yes. An internship creates a contract, and breach of that contract gives you the right to sue. The Payment of Wages Act may also cover you if the stipend qualifies as wages, but even if it doesn’t, a civil suit under the Indian Contract Act is always available.
What if the company has no office and I don’t know their address?
You can still file. The plaint can use the owner’s residential address or the last known place of business. Emails, invoices, or even GST details often carry a physical address. The court may allow substituted service if needed.
Is it worth going to court for ₹20,000?
It’s not just about the money. It’s about enforcing a right and sending a signal that such behaviour has consequences. Summary suits are cost‑effective, and when you recover the amount plus legal costs, the net expense can be minimal.
Do call recordings really hold up in court?
They do, if they are authentic and the recording is properly proved. You must preserve the original device and be ready to submit a certificate under Section 65B of the Indian Evidence Act for electronic records.
This article is general legal information, not legal advice. Consult a qualified advocate about your specific situation.
Advocate Sudhir Rao, Supreme Court of India