Trader from Maharashtra supplied the material to party in Telangana

We are trader from Maharashtra supplied the material to party in Telangana. From last one year he is not paying balance 2.85 lakhs payment. He has given PDC of 10 lakhs as a security. But cannot deposit as demand amount is less than PDC. Pls advise.

by Shivendra Pratap Singh | Jul 18, 2023 | Civil Matters

Question: We are trader from Maharashtra supplied the material to party in Telangana. From last one year he is not paying balance 2.85 lakhs payment. He has given PDC of 10 lakhs as a security. But cannot deposit as demand amount is less than PDC. Pls advise.

If a party owes you money, there are several steps and legal avenues you can pursue in India. However, please note that while I can provide general guidance based on your description, it's essential to consult with a legal professional for personalized advice specific to your situation.

Here's a general overview of what you can consider:

  1. Written Communication: Before considering any legal action, send a formal written reminder to the party detailing the amount due, the products or services for which the payment is due, and request immediate payment. Ensure this communication is sent through a recorded delivery method (like speed post) to have proof of delivery.
  2. Mediation: If the party is willing, you can both agree to resolve the matter through mediation. This involves an unbiased third party (the mediator) assisting both parties in reaching an agreement.
  3. Legal Notice: If there's no response or resolution from the above steps, consider sending a legal notice through a lawyer. This is a formal way of demanding the dues and informing the party that you may initiate legal proceedings if the dues are not settled.
  4. Negotiate a Settlement: If the party responds after the legal notice, and there's room for negotiation, you could possibly agree to some form of settlement, either in part or as a structured payment plan. Remember, it's essential to get any such agreement in writing.
  5. Civil Suit: If the party doesn't respond even after the legal notice, you can consider filing a civil suit for recovery of the dues. You'd need to approach a competent court under whose jurisdiction the contract was executed or where either of the parties resides or carries on business.
  6. Criminal Complaint: Issuing a cheque that bounces due to insufficient funds can be considered a criminal offense under Section 138 of the Negotiable Instruments Act. However, there's a complication in your case because the Post Dated Cheque (PDC) amount is more than what is owed. You should consult with a legal professional to understand if and how this could be used. Often the mere threat of criminal proceedings can prompt settlement.
  7. Insolvency Proceedings: If the party in Telangana is a company and is unable to pay its debts, you might be able to initiate insolvency proceedings against them. This is a more drastic measure and requires consultation with a legal professional.
  8. Engage a Collection Agency: Some businesses engage collection agencies to recover their dues, but this comes at a cost, as these agencies charge a fee (usually a percentage of the recovered amount).

Remember, preserving the relationship might be beneficial in the long run, so always approach these matters with a balance of firmness and understanding. Lastly, always consult with a legal professional when considering any of the above options.

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Shivendra Pratap Singh

Shivendra Pratap Singh

Advocate

Advocate Shivendra, practicing law since 2005, specializes in criminal and matrimonial cases, extensive litigatin experience before the High Court, Sessions court & Family Court. He established kanoonirai.com in 2014 to provide dependable and pragmatic legal support. Over the years, he has successfully assisted thousands of clients, making the platform a trusted resource for criminal and matrimonial dispute resolution in India.

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