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Unpaid Invoices of MSME by Limited company


30-Jul-2026 (In Recovery Law)
I am Udyam Regd MSME in Financial Services arranging loan from Banks to Companies. A company has paid only partially to me on Invoices raised (Plantiff paid Gst & respondent deducted TDS). Unpaid Amount 9 Lac, i dont have any written agreement with Respondent. In Commercial court, Respondent failed to file reply in 120 days. Commercial court has disallowed to hear Respondent reply. Now Respondent approach commercial court that case should be dismissed as it pertains to Civil court. What to d
Answers (4)

Answer #1
763 votes
As per the facts shared by you, your case is maintainable before the Commercial Court because it relates to financial consultancy and loan-arrangement services, and the outstanding amount is Rs.9 lakh. The absence of a written agreement will not automatically affect your case because the invoices, GST payment, TDS deduction and part-payment show that the company accepted your services and made partial payment against them. Since the company failed to file its written statement within 120 days, it has lost its right to file its defence.
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Answer #2
517 votes
it is correctly stated by the respondents that the commercial code does not have jurisdiction over the matter rather the civil Court must hear the case you must try in satisfy the commercial court with any judgement or law that you have pertaining to the jurisdiction over the matter in case you are unable to do so the matter shall be written as dismissed with liberty to approach the appropriate forum
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Answer #3
708 votes
The objection is not tenable. Recovery based on business invoices falls within the definition of a commercial dispute under the Commercial Courts Act. The absence of a written agreement is not decisive when invoices, GST payment, and TDS deduction establish the commercial transaction. Since the defendant failed to file the written statement within 120 days, they cannot now use a belated jurisdiction objection to delay the proceedings. Oppose the application and seek continuation of the trial.
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Answer #4
946 votes
Based on the facts shared, there appear to be reasonable grounds to contest the Respondent’s objection. The fact that there is no formal written agreement does not, by itself, make the dispute a non-commercial dispute, particularly where the claim arises from financial/loan-arrangement services and there are invoices, part-payments, TDS deductions, GST records and other supporting documents establishing the transaction. The nature of the underlying transaction and the manner in which the parties have conducted themselves would be important in establishing that the dispute falls within the scope of a commercial dispute. Further, since the Respondent has already failed to file its written statement within the prescribed 120-day period and the Court has closed/disallowed the same, the Respondent’s present application also needs to be examined carefully. However, I would need to see the plaint, the Respondent’s application/objection and the order regarding the written statement before giving a definitive view. Please connect with me so that I can review the documents and advise you on the appropriate response and strategy.
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