Issue legal notice to buyer to pay your outstanding dues 

if he fails to pay within 15 days of receipt of legal notice file suit to recover outstanding dues with interest 

Get issued legal notice claiming dues, expenses by etc and if notice is not complied with then commercial suit for recovery. 

You can file a civil recovery suit or a summary suit for unpaid dues in the Chennai jurisdiction. If the buyer has taken GST credit without paying the full consideration..you may also file a complaint with the GST authorities for misuse of input tax credit...

You collect the details and secure them as documentary evidences and then issue a legal notice demanding your dues.

Failing to comply with the demands made, you may file a money recovery suit or even a summary suit for recovery of your dues.

Send a legal notice through a Chennai lawyer demanding the outstanding principal (excluding GST already paid), interest, and costs within 15 days, supported by invoices, delivery proofs, and reminders. If your proprietorship has prior Udyam/MSME registration (mandatory before April-May 2024 invoices), file a free online claim on samadhaan.msme.gov.in against the buyer, uploading required docs for resolution via Tamil Nadu MSEFC with compound interest at 3x RBI bank rate (~24-27% p.a.).​

Absent MSME registration, pursue a summary recovery suit under Order 37 CPC in Chennai City Civil Court for the dues plus interest, within the 3-year limitation from due dates. 

Send a legal notice for the same and If not abided file a suit for recovery or specific performance 

1. Serve a lawyer's notice to him.

2. Thereafter, file a civil suit for recovery within limitation period. 

Once the buyer has paid the GST component of the invoices, it is a clear legal admission that:

• Goods were supplied
• Invoices are genuine
• Liability exists

This single fact substantially strengthens your case.

Your available options, in the correct order of effectiveness, are as follows.

First, issue a formal legal demand notice through an advocate.

The notice should clearly state:

• Invoice numbers, dates, and total value
• That goods were supplied in April–May 2024
• That GST was paid in August 2024 (admission of transaction)
• That the principal amount remains unpaid
• A fixed deadline (usually 7–15 days) for payment

In many commercial disputes, this step alone leads to settlement once the buyer realises litigation is imminent.

Second, initiate summary recovery proceedings.

Because this is a commercial transaction supported by:

• Tax invoices
• GST payment proof
• Delivery proof (if available)

you can file a summary suit under Order XXXVII CPC before the Commercial Court. This is faster than a regular civil suit and limits the buyer’s ability to delay by filing vague defences. Courts treat GST-paid invoices as strong documentary evidence.

Third, invoke Section 138 NI Act only if a cheque exists.

If the buyer has issued any cheque that was dishonoured, you can proceed criminally under Section 138. If no cheque exists, this remedy does not apply.

Fourth, file a commercial civil suit for recovery with interest.

If summary procedure is not suitable for any reason, you can file a regular recovery suit seeking:

• Principal amount
• Interest (commercial rate, often 12%–18%)
• Legal costs

Since both parties are in Chennai and the supply occurred locally, jurisdiction is straightforward.

Fifth, consider GST-based pressure (not a substitute, but leverage).

The buyer claiming GST credit without paying the supplier is risky for him. While GST authorities do not directly recover your money, pointing out that continued non-payment may expose him to GST scrutiny often prompts settlement. This should be used carefully and legally, not as a threat.

What you should not do:

• Do not keep sending informal reminders indefinitely
• Do not agree to vague future payment promises without written acknowledgment
• Do not delay further, as limitation periods apply (generally 3 years)

Evidence you should immediately collate:

• Tax invoices
• Proof of GST receipt (bank statement)
• Delivery challans / transport proof
• Emails / WhatsApp reminders
• Ledger account

Dear client, 

In the instant case, your buyer has defaulted the payment for the goods supplied and this will have severe repercussions on your business and cash flow. Therefore the following steps could be taken. 

The first and foremost step is to send mails or other modes of communication and try to resolve the non-payment in an amicable manner. If the buyer still doesn't respond to the communication and further delays the payment then the next course is to engage a lawyer.

Under legal advice, send a legal notice to the buyer with the detailed factual matrix of the transactions, the default and the legal consequence if the payment is not made within a specific period of time.

If the buyer does not respond to the notice then the next course is to institute a civil suit for the recovery of money. Order 37 of CPC provides the provision for filing a ‘summary suit’ based on written contracts or invoices. 

I hope this answer helps. For any further queries, please do not hesitate to contact us. Thank you.

You have many options. (1) Legal Notice, (2) Case for Recovery, (3) Complainant with regulator if you are MSME.

However, for any well informed advice one has to check the agreement / terms of sale / any related documents between you and the buyer.  

Dear Sir/Madam, 

It is suggested that you send a legal notice under MSME laws (if you firm/unit is registered under MSME Act) under for recovery of the amount along with interests. if the same is not complied with by the buyer, file a commercial suit of recovery before the competent court of law. 

- Since, you have supplied goods to the said buyer , then you have legal right to claim the amount from the said buyer 

- If he is not responding to your claim, then send a legal notice to him and therein also claim interest 

- If not refunded , then file a recovery suit before the Court after submitting the proof of goods supply/raised invoices.

First, please engage a competent lawyer and send them a notice demanding payment of dues (with interest) on or before a deadline and putting them on notice that if they do not do so, you shall be at liberty to proceed against them legally. If it so warrants, you have to file a suit at the commercial court, in consultation with your advocate.