• Pending payment

We are contractors undertaking construction of sewage treatment plants.Recently we have executed a contract with PSIEC(Punjab small scale industries & export corporation),Chandigarh involving construction of 2MLD STP.We have submitted a running bill for payment on 24/04/2019 which is unpaid till date.Despite numerous verbal and written reminders and even meeting the MD of corporation ,nothing has happened.The deptt. just does not respond.
Asked 3 years ago in Business Law

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13 Answers

1) issue legal notice to corporation to clear your outstanding dues 


2) if it fails to pay file summary suit under order XXXVII of code of civl procedure to recover your dues with interest 

Ajay Sethi
Advocate, Mumbai
91326 Answers
6822 Consultations

5.0 on 5.0

Hello sir,

Firstly give them a legal notice for payment of the unpaid amount in a specific date and if they fail to pay then you can file a recovery suit against them under order 37 of Civil Procedure Code.

Harshad Joshi
Advocate, Ahmedabad
55 Answers

Not rated

There must be dispute resolution clause in contract. ? evoke the same or have to file recovery suit.

Yogendra Singh Rajawat
Advocate, Jaipur
21787 Answers
31 Consultations

4.4 on 5.0

You must be having an agreement with the department. In that agreement there must be an arbitration clause. Give them a legal notice regarding appointment of an arbitrator and if they do not respond then file an  arbitration application in the high court for appointment of an arbitrator.


Rahul Mishra
Advocate, Lucknow
13998 Answers
65 Consultations

5.0 on 5.0

Issue notice demanding for payment of your contractual dues in line with the T&C of the contract.

In case if the department fails to respond you can file suit for recovery of money.


S Srinivasa Prasad
Advocate, Hyderabad
2876 Answers
9 Consultations

5.0 on 5.0

The terms of the contract would really prevail in this, your contract should have a clause regarding this non payment. 

if not, your contract may have an arbitration clause, if yes, you can send them a legal notice in this regard. 


I am representing contractors, we have contracts which prevail and we send legal notices to the government departments regarding their non payment and default in payments. 


the first thing you can do is, send them a legal notice of demand.

Abhishek Sharma
Advocate, Chandigarh
128 Answers
2 Consultations

5.0 on 5.0

- Do send the legal notice to the department for the same.

- Besides, if no response do file petition under specific performance of the contract for payment and if there is any clause of arbitration, do file for Arbitration for payment. 




Vivek Arya

Vivek Arya
Advocate, Gurgaon
767 Answers
6 Consultations

5.0 on 5.0

Send a legal notice to the Deptt. to process your dues forthwith.

In case they fail to comply with the legal notice, invoke the arbitration clause, if at there's one in the agreement you signed with the. If there is no arbitration clause in the Agreement, file a summary suit for recovery against them. 

Vibhanshu Srivastava
Advocate, Lucknow
9457 Answers
273 Consultations

5.0 on 5.0

You can file a civil recovery suit to recover the amount due and payable to you together with interest thereon from the date of the invoice till payment. 

Mohammed Mujeeb
Advocate, Hyderabad
19291 Answers
32 Consultations

4.7 on 5.0

You need to file recovery suit as per your terms of agreement

Prashant Nayak
Advocate, Mumbai
29642 Answers
123 Consultations

4.1 on 5.0

1. Serve a lawyer's notice to PSIEC to release the arrears forthwith.

2. If it is still not released then a suit for recovery of money has to be filed in the competent civil court to recover the principal amount with interest and cost of litigation.

Ashish Davessar
Advocate, Jaipur
30763 Answers
972 Consultations

5.0 on 5.0

If department is not responding to written reminders then only option left with your is hire an advocate and send legal notice to department for recovery of dues in 60 days.

otherwise file suit for recovery against department.

Mohit Kapoor
Advocate, Rohtak
10687 Answers
7 Consultations

5.0 on 5.0

Under the circumstances you may initiate legal steps to recover the amount due to you from the department concerned.

You may contact a lawyer in the local and issue a  legal demand notice demanding your dues based on the copies of the bills that you possess in this connection.

Subsequently you can even file a summary proceedings suit for recovery of your money.

However this may strain the relationship between you and the concerned office which may adversely affect your future prospects in this regard, for the reasons you know better.


T Kalaiselvan
Advocate, Vellore
81507 Answers
1835 Consultations

5.0 on 5.0

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