We have given goods (we are a refurbishing company) to a vendor and after the last lot taken in January, vendor has been ignoring calls for payments. He claims that he is yet to sell the goods and will give the money once he sells. He doesnt respond to messages and when taking calls angrily replies saying it will take more time. He doesnt even allow us to meet him saying he is outside the city and will meet when he is back which never happens. He is evading payments. Even when we ask him to return the stock, he says he will do that but that never happens. He is supposed to pay the money in 2 weeks but its been 2 months now and last call with him is giving us the opinion he has sold the goods and is keeping the money. He is a Muslim guy with big contacts. Kindly help us in getting our payments. The amount is a big one and we being a start up, its almost a do or die situation for us. We have also helped him with providing contacts to some people who can help him in his business because he said he will return the stock or payment if we do so. He has been using the contacts and still there is no near sight of him giving the money to us. Will the issue be dragged for a long time if we take the route of taking the case to court taking into consideration his contacts. It will be of great help if someone can help guide us through the entire process of resolving the issue to us with the scenarios, costs, timelines and what can be expected as the outcome.
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Hi,
First issues legal notices to the buyer.
Even if he is a very big guy with lot of so called contacts, no one can help him, if courts and cops intervene. We can use pre-litigation court interventions such as mediation or arbitration routes to solve your problem at the cheapest cost and with in a time frame of 3 to 4 months. No worries at all. Use law and lawyers who can think differently and have a canny ability to support a start up and they can resolve your issue asap.
1)1) issue legal notice to vendor to make payments in respect of goods sold by you
2) if he fails to make payment file summary suit for recovery of money with interest
3)you would get orders directing vendor to deposit money in court within period of one year
4) if vendor does not have any defence you would get decree within one year
5) litigation costs vary depending upon lawyer engaged by you
On the basis of documentary evidence in the form of invoices, delivery challans and other details about the supply of goods, you may issue a legal demand notice under registered post with AD card.
If there is no response or not complied with the demands, you may drag him to civil court for recovery of amount with interest and also you may drag him to consumer court for compensation towards the mental stress and agony suffered due to this.
A criminal complaint with the local police for cheating also may be lodged.
All these steps may put pressure on him so that he may turn up for settlement or negotiations.
1. The remedy for you is to file a suit for recovery of money with compensation against him in the civil court. If you have the documentary evidence which can prove the contract and delivery of goods to him then you can expect the court to rule in your favour.
2. Judicial process, more so in civil cases, takes time to culminate. Your lawyer can expedite it to the extent possible.
3. Before going to court issue a legal notice to him.
I would like to thank you all for replying to the question. We have proofs of all the invoices provided to the vendor along with the message interactions between us and the vendor accepting the receipt of the goods and delaying the payment due to the reason claimed by the vendor that we are making huge profits from him and he is entitled to keep the stock and not return the money. I have few queries regarding the future of the case which are mentioned below 1.How much time will it take to get the entire issue resolved? (Best case and worst case scenario and the time lines for each step of the case, like for legal notice and then other steps) 2.Is there any way in which we can find a faster solution to getting our money back as we being a start up, the amount being stuck right now is quite significant? 3.How much does it cost approx. for the entire case in the event of the case being dragged for some time? 4.What are the chances of us not receiving the money in the event of the vendor using a loop hole to prevent payment. 5.We are ready to issue a legal notice to him and is there any way we can make the case more air tight and force him into negotiate as he always cares about his name in the market. Kindly let me know how to choose a good lawyer who can help resolve the entire issue at hand with little hassle. Any suggestions for faster case resolution will help greatly. P.S. We have VAT returns of goods sold as proof of procurement and sales including invoices.
) issue legal notice calling upon purchaser to make payment within 7 days . if purchaser fails to pay file summary suit for recovery of money
2) if purchaser files his appearance in summary suit you have to take out summons for judgment
3) court would either grant decree if defenses raised are moonshine or bogus
4) in alternative court may direct purchaser to deposit money in court . you can with draw money from court as per court orders
5) final hearing of suit may take some years
6) there are no short cuts
1.How much time will it take to get the entire issue resolved? (Best case and worst case scenario and the time lines for each step of the case, like for legal notice and then other steps)
This is a practical issue. The time taken for each process will depend on the prevailing circumstances and the place/state. Nobody can predict the time taken even an approximate time because it depends on various factors which you will come to know when the issues are being dealt practically.
2.Is there any way in which we can find a faster solution to getting our money back as we being a start up, the amount being stuck right now is quite significant?
Since it involves issues locally, you may have to look for such event in the local.
3.How much does it cost approx. for the entire case in the event of the case being dragged for some time?
The advocate fees and the court fee will depend on the advocate your may engage and the state which you belong, the court fee differs from one state to another.
4.What are the chances of us not receiving the money in the event of the vendor using a loop hole to prevent payment.
No predictions hence no answer.
5.We are ready to issue a legal notice to him and is there any way we can make the case more air tight and force him into negotiate as he always cares about his name in the market.
You can ask your lawyer to do it the way you desire, he may be having more answers to such questions.
Time frame cannot be predicted. The earlier you file it the earlier it will be decided. The cost will be the fee of your lawyer and nothing else. A legal proceeding in a court of law teaches one to expect the unexpected, so nothing can be taken as guaranteed.