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What is legal action for non payment of invoices in india ?


03-Jun-2024 (In Recovery Law)
My Client and I had a contract with termination clause. As per termination clause he has to pay me and he has accepted my invoices but keeps saying he is low on funds and will pay me soon. party not giving payment , Invoices are 90 days old. Should I wait or take legal recourse.
Answers (5)

Answer #1
358 votes

The sender must specify a clear deadline for the other party to settle the outstanding debt. The legal notice, preferably drafted by a lawyer, should reference the relevant legal provisions supporting the recovery claim, such as those under the Negotiable Instruments Act, Indian Contract Act, Indian Penal Code, or Civil Procedure Code. In India, legal action for non-payment of invoices or bills can involve both civil and criminal remedies. A seller may file a civil suit to recover the unpaid amount, along with interest or damages, and in certain cases, opt for a summary suit under Order XXXVII of the Civil Procedure Code for faster resolution. If the matter involves cheating, breach of trust, or dishonoured cheques, criminal action may be initiated under provisions such as Section 138 of the Negotiable Instruments Act or Section 406 of the Indian Penal Code.

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Advocate Chikirsha Mohanty

Adv. Chikirsha Mohanty

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Answer #2
976 votes
To my mind, you should take legal recourse, You can start by having sent a legal notice, wherein, you call upon the party to pay in 15 days or 7 days'. In case if he does not pay you may Institute a summary suit which is a legal faster proceeding. Summary suit can be instituted provided there is no arbitration clause in the agreement
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Advocate Urfee Haider

Adv. Urfee Haider

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Answer #3
962 votes
You may take legal recourse to recover the money for which firstly legal notice would be issued by your advocate and thereafter, a civil suit for recovery of due amount with interest would be filed on your behalf. However, if you want to wait for some more time it would be better to get an acknowledgement from his regarding due amount and the time limit within which he would make the payment.
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Advocate Pankaj Kumar

Adv. Pankaj Kumar

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Answer #4
825 votes
first you issue a legal notice through counsel for your dues if he not pay your dues after receiving your notice, you can file recovery suit against him. you can file recovery suit within three years
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Advocate Dharmendra Singh

Adv. Dharmendra Singh

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Answer #5
551 votes
you must take legal action , firstly you need to send legal notice and demand the money within 15 days , if they fail to pay within 15 days ,you must file recovery suits ,once you filed recovery suits ,you will get your money back within 90days
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Advocate Mukesh Kumar Sah

Adv. Mukesh Kumar Sah

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