Supplied material to company. Only half payment. How to recover rest?

In Labour & Service Law

Nath Nissan is refusing to pay the amount they owe to me. I had supplied some material to them last year and raised invoices worth Rs. 1.70 Lacs to them wherein I got paid around 1 Lac. For the remaining amount of Rs. 70,000 they have been refusing / ignoring me and now when I sent my office boy to their office they are asking us to take our material back.

I purchased this material for them and it is of no use to me now. How do I get my money back?

I have their partial invoice payments and SMS as proof that they owe money to me.

Answers (1)

329 votes


You have a very strong case based on the facts mentioned by you as the challenge in any recovery case is to prove the liability of the defaulter and herein your case, the liability arises and is proven by the partial payment made to you by the defaulting party. Also, the messages exchanged between you discussing the pending payments make your case and cause all the more stronger.

In no case whatsoever, you are liable to accept the goods already sold to them as the transaction is deemed closed once the goods are received by the buyer and consideration paid for the same. In your case, though a part consideration was made, it is good enough to state the transaction as closed and you must initiate necessary action to claim the balance consideration from the buyer. Invoices, messages, payment challans, delivery challans, etc. are documents you must preserve carefully to enable an effective recovery of your dues.

We suggest sending a Legal Notice for recovery of dues covering all relevant details and attaching copies of the relevant documents mentioned above. More often than not, an effective Legal Notice does the job in cases where all documents support your case and the amount in consideration is not too high, like in your case.

In case the Legal Notice does not get you the desired relief, i.e. your money is not recovered, you must file a Suit for Recovery of Dues wherein you may claim the pending amount along with collateral damages if any, in addition to an interest @ 12% p.a. applicable from the date the money was due to be paid to you.

You may also note that a Suit for Recovery of dues may be filed no later than within 3 years from the date the money was due. Since it has been a few months in your case, you have enough time at hand to file the recovery suit if the need be.

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