Procedure to recover outstanding dues from the client

What is the legal procedure to recover the outstanding dues from the client who is not paying us for our services

Answers (3)

73 votes

Dear client,
If you have your client chaques then go though the section 138 case. If you don't have then go though civil suit or summary suit for recovery of your amount. Civil suit is time consuming process.

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221 votes

Dear Querist
First thing is to send across a legal notice to your client, who has not paid outstanding dues due to you. You can give him a time of say around 10 to 15 days in your notice to clear the dues and thereafter if he fails to pay your dues, you can further initiate recovery suit against him for recovery of money due to you.
In case if the amount due to you and recoverable by you is substantial ans your client is working as Company (Pvt Ltd or Ltd), then you can also initiate Insolvency proceedings against your client. For initiating Insolvency proceedings you will have to send a Demand Notice to your client along with all the invoices and ask him to pay the amount due to you within a period of 10 days. Thereafter you can initiate Insolvency Proceedings against him before National Company Law Tribunal.

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348 votes

Hi. If the outstanding payment is admitted by your client and if he has defaulted in payment then you can file a summary suit which as the name suggests is quicker in terms of resolution as compared to a regular suit for recovery. Secondly if the client had issued you any cheque towards your services and the cheque when deposited for encashment has bounced then you can prefer a criminal complaint under s.138 of negotiable Instruments act. Thirdly the insolvency code recently implemented may also be checked for any possible relief. I will need more details for better advise. Thanx

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