Can we sue client for outstanding payment

212 votes

Yes, you can take legal action against a company for non-payment of dues in India. However, the legal route that you must take depends upon the facts and circumstances of the case. You must hire a legal attorney to make your money recovery easy and smooth and to get your legal notice drafted if required. If you have any queries, you can either read the LawRato LawGuide or contact me.

LawRato LawRato

559 votes

yes, u can sue your client. appropriate remedy for you is to file a suit for recovery. the case will be filed on the basis of your invoices, receipts and other documents available with you. the matter may take anything around 1.5-2 years. you will get interest along on principal along with principal amount and also cost for proceedings.

but as dues are of 2013, you will have to take prompt action as for recovery there is a limitation period prescribed for 3 years and thereafter u cannot recover. subject to examination of the documents, we can also file summary suit which will take relatively less time as compared to regular suit for recovery.

Advocate Rahul Malhotra LawRato

560 votes

Dear Sir,
Thanks for your query. We have a remedy to file recovery suit and further for initiating legal proceedings we have to send legal notice to the defaulter.
I would like to mention that you may send us the case documents or may fix time for meeting.
Regis
Mohit Popli
Advocate
Founder
CORP LEXIS Chambers Legal and Business Consulting Services.
www.corplexischambers.com

Advocate Mohit Popli LawRato

691 votes

Dear Sir,

You can file a suit for recovery along with interest and damages. Generally, the sum pending along with 9 - 12 percent interest is granted in such cases.

No damages are granted in ordinary civil suits for recovery, however, cost of litigation will be awarded to you. If you have a good and diligent lawyer you can get the money back within 1 - 2 years of the filing of the suit.

Advocate Roshan Santhalia

Advocate Roshan Santhalia LawRato

155 votes

Legal Action for Non-Payment of Invoices in India
If you are facing a situation where a client has not paid your invoices, you have legal options to pursue the outstanding payment. Here are steps you can take:

1. Demand Payment: Start by sending a formal payment demand to the client. This can be in the form of a reminder letter or email, clearly stating the amount due, the details of the services or goods provided, and a deadline for payment. Request them to settle the outstanding amount within a reasonable timeframe.
2. Review Your Contract: Examine the contract or agreement you had with the client. Ensure that it includes payment terms, interest on late payments, and dispute resolution clauses. These terms will be crucial in your pursuit of the outstanding payment.
3. Mediation or Arbitration: If the client disputes the payment or you cannot reach an agreement through negotiation, consider alternative dispute resolution methods like mediation or arbitration. These processes can help resolve disputes without going to court.
4. Civil Suit: You may need to file a civil suit in a regular court. This involves drafting a legal complaint, serving notice to the client, and attending court proceedings. It can be a more time-consuming and costly option.
5. Legal Representation: Consider hiring an attorney with expertise in contract law and debt recovery. They can guide you through the legal process, help you prepare necessary documents, and represent you in court if required.
6. Garnishment: If you obtain a court judgment in your favor, you may be able to enforce payment through wage garnishment or attaching the client's assets.
7. Credit Reporting: In some cases, you can report the debt to credit bureaus, which may negatively impact the client's credit score and motivate them to settle the debt.

Remember that each case is unique, and the appropriate action will depend on the specific circumstances and the amount involved. It's essential to document all communication, contracts, and evidence of the debt owed to strengthen your case.

Advocate Chikirsha Mohanty LawRato