• Options for recovery of payment for supplies made

We have supplied items on credit basis to customer as per purchase order.
but party refuses to make payment and also refuses to return the material and also uses it for their commercial gain and fulfilling his business needs.
they say that the material is faulty orally , but refuse to give written statement nor do they send it for correction nor ask us to attend the corrections if any.
just delaying the payment and stopping us to have access to the materials supplied.
materials are tools that are being used to produce various jobs for the customer.
an amount of Rs.5,97,000/00 is pending since 07 may 2013.
what all are the options that we can exercise to get back the money.
can we claim interest for the delayed period?
can we claim damages?
can we claim rent or share in the commercial gain the party had by using the supplies?
what will be the court fees and other charges? and what is the minimum time that will take for a legal solution?
all the dealings are in hyderabad region telangana state.
Asked 11 months ago in Civil Law from Hyderabad, Telangana
1) issue legal notice to customer to pay your outstanding dues within period of 15 days of receipt of notice 

2)if customer fails to pay you have to file summary suit under order XXXVII of CPC for recovery of Rs 5,97000 with interest 
3) i presume your PO contains a clause as to interest to be charged 

4) in summary suit you cannot claim damages nor gain made by purchaser 

5) court fees is a state subject and it varies from state to state 

6) legal fees vary 
Ajay Sethi
Advocate, Mumbai
23192 Answers
1218 Consultations
5.0 on 5.0
1) you can claim interest rate if purchase order mention interest to be charged in case payment not made within period of 15 days from date of receipt of materials  

2) if your purchase order is silent you cannot claim interest from date of default of payment 

3) in legal notice you can mention that if payment not made within 15 days of Rs 5,97,000 interest would be charged at the rate of 18%pa 

4) in the summary suit to be filed you should mention interest to be recovered at 18%pa ( as per your agreement or from date of legal notice) 

5) kindly understand that summary suit is summary trail and you cannot go against your agreement ie P0 , delivery challan etc 

6) if purchaser does not have any defense you can even get a decree within period of one year 

7) in the alternative court will direct purchaser to deposit sum of Rs 597000 in court
Ajay Sethi
Advocate, Mumbai
23192 Answers
1218 Consultations
5.0 on 5.0
Hi, First you have to issue a legal notice ask them to repay the entire amount.

2. If they failed to repay the amount then you have to file a suit for Recovery of money.

2. In suit for recovery of money you can claim present and future interest till the realization of the suit and also for damages.

3. For the exact court fee better you have to approach local advocate.
Pradeep Bharathipura
Advocate, Bangalore
4104 Answers
133 Consultations
4.3 on 5.0
1. Lodge a police complaint for cheating you immediately,

2. After that file a Recovery Suit with all the evidence you have in support of your allegation claiming payment of the dues with interest from 007, damages and cost,

3. You can not claim share of profit made by the party,

4. Court fee will vary from place to place and it will be Rs.21,980/- in West Bengal,
Krishna Kishore Ganguly
Advocate, Kolkata
12104 Answers
229 Consultations
5.0 on 5.0
If you have invoice or delivery challan in your possession for the proof of supplying the materials to the customer, you can first issue legal demand notice demanding the amount due to you.
If there is no response or the customer is not complying with the demand made, you may file a recovery suit through a civil court besides lodging a criminal complaint with the police for the offences of cheating.







what all are the options that we can exercise to get back the money.
You may file a civil sit for recovery of money after issuing a legal demand notice to him.




can we claim interest for the delayed period?
Yes, you can claim interest too for the delayed payment



can we claim damages?
It depends on what you would like to claim damages.


can we claim rent or share in the commercial gain the party had by using the supplies?
This also depends on the agreement between you and the party



what will be the court fees and other charges? and what is the minimum time that will take for a legal solution?
all the dealings are in hyderabad region telangana state.
The court fee aspect may be enquired from a local advocate.  Time taken cannot be predicted, normally i may take at least two years.

T Kalaiselvan
Advocate, Vellore
13979 Answers
127 Consultations
5.0 on 5.0
Send lawyer notice to customer to pay your outstanding dues. If they failed to repay the amount then you have to file a suit for Recovery of money. Draft of the suit may done accordance with their replay .you can claim interest too for the delayed payment.Check the court fee and  suit valuation act for knowing the amount for court fee.
Ajay N S
Advocate, Ernakulam
1911 Answers
19 Consultations
5.0 on 5.0
The only legal remedy available to you is to file a lawsuit for recovery of money with compensation and interest. If the goods are faulty then the buyer ought to return them at the earliest possible opportunity, failing which it is deemed that he has accepted the goods. The only fee will be the fee of your lawyer. The time taken for the conclusion of the case will be subject to the backlog of cases in the courts concerned. 
Ashish Davessar
Advocate, Jaipur
18088 Answers
447 Consultations
5.0 on 5.0
1. yes, you may claim the interest for the delayed period.
2. yes, you may claim damages from them.
3. no, you can not claim the share in gain.
4. the court fee will be around Rs. 9000/ for your principle amount and remaining amount will be calculated as per your demand and damages.

5. First of all you have to send a legal notice through your counsel and after that within 3 years you may file the case for recovery of money with suit for damages before the civil court.
Nadeem Qureshi
Advocate, New Delhi
3523 Answers
130 Consultations
4.9 on 5.0

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