Final payment due since more than a year
30-Apr-2023 (In Recovery Law)
our client after agreeing on the final amount to be paid has not paid us the balance since past 1 year. what action should i take to ensure the recovery. we are currently executing another project for the same client where we are being paid. we couldnt stop work here coz of fear of loosing the whole amount and also giving them a chance to debit us any claims. can becoming a msme member help in this. how about the NCLT can that be of any help. please suggest
You can file money recovery suit but if u are willing to go to NCLT then u must ensure there in no pending litigation with respect to same cause of action. NCLT can help you but u must have valid documents and due amount need to be more than 1 lac and u have many options under criminal law as well.
I advise you to serve them a legal notice for such recovery and then initiate a bankruptcy against the company as they seems to stand as operational creditor. Though the said amount is not to be disputed by them and you should be able to prove them in the court of law via ledger etc. This action will definitely let you recover your amount. If you don’t want to effect your current dealings with them then first try to de merge the company thereby giving such debt of last project to be recovered by another company and other company can have the present work contract.
The remedy for recovery from a company depends upon the facts and circumstances of the transaction. If the company is registered under the Companies act and your debt is an admitted amount ( the company admit that the said amount is due to you) you can proceed under companies act by filing a winding up petition or under the insolvency or bankruptcy code. If the amount is disputed, then recovery suit can be filed under Code of Civil Procedure.
Becoming a MSME member will help only if you have an admitted claim and corroborating evidence.
Becoming a MSME member will help only if you have an admitted claim and corroborating evidence.
Disclaimer: The above query and its response is NOT a legal opinion in any way whatsoever as this is based on the information shared by the person posting the query at lawrato.com and has been responded by one of the Divorce Lawyers at lawrato.com to address the specific facts and details.
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