Before you file a lawsuit, you need to decide a few things about your potential case.
You need to answer four fundamental — and fairly obvious — questions as part of deciding whether it’s worthwhile to bring a lawsuit to court:

• Do I have a good case?
  • Am I comfortable with the idea of a compromise settlement or going to mediation?
  • Assuming a lawsuit is my best or only option, can I collect if I win?
  • Limitation

If the answer to any of these questions is no, you probably won’t want to sue.

Do I Have Cause of action?

To figure out whether you have a good case, it helps to know that lawyers break each type of lawsuit (“cause of action”) into a short list of legally required elements. It follows that as long as you know what the elements are for your type of lawsuit, it’s usually fairly easy to determine whether you have a good case. For example, a lawsuit against a contractor for doing substandard construction would be for breach of contract (because the contractor agreed either orally or in writing to do the job properly). The legal elements for this type of lawsuit are as follows:
Contract formation. You must show that you have a legally binding contract with the other party. If you have a written agreement, this element is especially easy to prove. Without a written contract, you will have to show that you had an enforceable oral (spoken) contract, or that an enforceable contract can be implied from the circumstances of your situation.

Performance. You must prove that you did what was required of you under the terms of the contract. Assuming you have made agreed-on payments and otherwise cooperated, you should have no problem with this element.
Breach. You must show that the party you plan to sue failed to meet his or her contractual obligations (“breach of contract” in legalese). This is usually the heart of the case — you’ll need to prove that the contractor failed to do agreed-on work or did work of unacceptably poor quality.

Damages. You must show that you suffered an irreparable loss as a result of the other party’s breach of contract. Assuming the work must be redone or finished, this element should also be relatively straightforward to prove.
The legal elements for other types of lawsuits are different. You can find outlines for most by Advocate Muhammad Iqbal Khan (Iqbal International Law Services).

Is There an Alternative?

Even if you decide you have a good case, don’t rush down to the courthouse to file a lawsuit. First, think about ways to settle your dispute out of court. You can talk directly with your opponent and try to negotiate a mutually beneficial compromise. Or you can hire a mediator — a neutral third person who will help you and your opponent evaluate your goals and options in order to find a solution that works for everyone. Also, and especially if your contract provides for it, you may be able to submit your dispute to binding arbitration. For materials that will help you find a resolution without involving courts or lawyers,

Can I Collect if I Win?

Your answer to the third question is incredibly important. There is no point in getting a court judgment against a deadbeat. While most reputable businesses and individuals will pay you what they owe, if they don’t have it, they can’t pay you. If your opponent tries to stiff you, you may be in for a struggle. Unfortunately, the court won’t collect your money for you or even provide much help; it will be up to you to identify the assets you can grab.
Normally, Execution has three modes. Firstly to attach the property, secondly salary attachment and thirdly is civil imprisonment. It is easy if the judgment debtor is Govt. servant, you can get your money through court order by salary attachment and it is also easy if you know the property of the judgment debtor that can be attached through the court. If the personal or company have no any immoveable property and having not govt./semi Govt. job then it is not easy to execute on the court Decree.

Limitation

Generally for the recovery and specific performance suit the limitation is three years. You have to file the case within three years from the date of the agreement. If your case is time barred and passed more than three years as explain in the limitation act then you cannot file your case it will be dismissed on the defendant application or with the Court suo moto order.