• Payment on hold due to agency's inability to recover it from

My agency with whom i'm in a contract with refusing to pay me my dues. The reason offered by them was because they haven't received the payment from the company we delivered a project to. Agency has received the PO and They have made the payment for the particular project to me already. But now they are refusing to pay me my other dues due to their inability to recover the payment from the client company.
Asked 7 years ago in Business Law

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6 Answers

Issue legal notice to agency to pay your outstanding dues

2) if agency fails to pay file summary suit under order XXXVII of code of civil procedure to recover your outstanding dues

Ajay Sethi
Advocate, Mumbai
94725 Answers
7536 Consultations

5.0 on 5.0

You have to take legal proceedings against the agency to recover your dues

It is immaterial that agency is unable to recover dues from the company

Ajay Sethi
Advocate, Mumbai
94725 Answers
7536 Consultations

5.0 on 5.0

Hello,

1) If there'sa valid contact the agency is obligated to fulfill their part of the contract. Their failure or refusal to pay is not excusable by whatever means.

2) Get a legal notice issued to the agency demanding the arrears to be paid to you immediately. If they fail to honour the demand notice, you can approach a court to file a suit for recovery.

S J Mathew
Advocate, Mumbai
3548 Answers
175 Consultations

5.0 on 5.0

My agency with whom i'm in a contract with refusing to pay me my dues. The reason offered by them was because they haven't received the payment from the company we delivered a project to. Agency has received the PO and They have made the payment for the particular project to me already. But now they are refusing to pay me my other dues due to their inability to recover the payment from the client company.

If the agency has breached the contract then you may sue them for that, but in this case it has to be seen that what are the terms and conditions of the contract especially under situations where the agency is unable to recover the amount and expresses its inability.

However the agency cannot give excuse that it cannot repay bcause they could not recover the amount from the company owing to any reason. This is the problem of agency which cannot be transferred to you and they are liable to pay you if you are due for it as per the conditions of contract.

You can issue a legal notice demanding your money, failing to comply you my aproach court with a suit for recovery of money for the items supplied by mentioning the documentary evidences in the suit for recovery.

T Kalaiselvan
Advocate, Vellore
84925 Answers
2196 Consultations

5.0 on 5.0

How do i recover fees paid from the agency for this pursuit where it should have been simple business transaction? It is at some extent a loss for me.

You first send a legal demand notice for the amounts due to you from the agency.

Let them give a reply, if they dont comply or respond, you may file a money recovery suit for the amount due to you along with interest for the amount under recovery.

T Kalaiselvan
Advocate, Vellore
84925 Answers
2196 Consultations

5.0 on 5.0

1. Serve a lawyer's initially to the agency to release your dues.

2. If the status quo continues after the notice from your lawyer then you may file a civil suit for recovery of money with interest in the civil court of competence.

Ashish Davessar
Advocate, Jaipur
30763 Answers
972 Consultations

5.0 on 5.0

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