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I am a civil contractor. Company delaying my payment. What can i do?


11-Apr-2023 (In Labour & Service Law)

I am a Civil contractor (sub contractor) and a company has been harrassing me by postponing my payment from last 7 months. Please help.

 

Answers (1)

Answer #1
335 votes


The non-payment by the company is a clear case of breach of contract and you have got a number of remedies under the legal system to recover your payment:

1. File a suit for recovery: This is the first and foremost method you should follow. File a Suit in the competent court for the recovery of your dues.

2. If in case the the company is incorporated in India then you may approach to High Court for winding up as the amount payable to you is debt on the company and in case company is not in a position to pay its debts, the High Court can pass winding up orders. 

3. File a cheating case against the company & directors: This is a criminal complaint under Section 420 of the Indian Penal Code and you can register an FIR and continue with the criminal case against the company for cheating as well as Criminal breach of trust under Section 406 of the Indian Penal Code.
 

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