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what to do when a client doesn't pay in india ?


14-Jun-2024 (In Consumer Court Law)
We are a Delhi based company. One of our clients has stopped paying us the dues. And from 2013, Their accumulated dues are more than 3 Lakh. We have made several calls,visits,mails but nothing is done about it. Now, i would like to know a couple of points. 1) legal action for non payment of invoices in india and Get the outstanding payments to Debited to my account? 2) On what grounds can i file a legal case against them? 2) How to deal with such clients? 3) What is the average time that such a case is resolved? 4) Will i be paid any compensation except the principal amount?
Answers (4)

Answer #1
65 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.

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Advocate Chikirsha Mohanty

Adv. Chikirsha Mohanty

LawRatoDelhi | 200+ Answers
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Answer #2
712 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.
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Advocate Rahul Malhotra

Adv. Rahul Malhotra

LawRato Delhi | 25+ Answers
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Answer #3
831 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
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Advocate Roshan Santhalia

Adv. Roshan Santhalia

LawRatoDelhi | 25+ Answers
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Answer #4
555 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
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Advocate Mohit Popli

Adv. Mohit Popli

LawRatoDelhi | 5+ Answers
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