Default in payments.
Asad
(Querist) 18 October 2011
This query is : Resolved
Respected Experts!
Time and again I used to hear company defaulting payments, now that I have started my own Logistics Business,and due to startup organization I am comparitevely very small.
My question is XYZ Co. was my client, after selling services on the agreed rates the customer is making me nearly to beg for my own money.
After requesting time and again the company paid 30% of amount and 70% still balance from last five months.
Indicating that they dont have enough funds for payments.
I dont know how to go about it .
Please can the experts guide me on this.
Thanking you.
Asad
Raj Kumar Makkad
(Expert) 18 October 2011
Asad! It shall be better for you to issue a legal notice through your counsel and demand your payment with interest and cost and meantime also try to negotiate through some heavy weight politician or business heavy weight person/firm with whom defaulting party has business terms.
Asad
(Querist) 18 October 2011
Dear Mr. Raj Kumar,
Thank you very much for your guidance.
Unfortunately I do not have such recources (Politician) nor I am aware of with whom the client must be interacting.
The only resort I am looking is towards the law to help me.
Thanks once again.
Kind regards,
Asad
ajay sethi
(Expert) 18 October 2011
what are the terms of purchase order? does it contain interest clause .
if party has defaulted issue legal notice then file summary suit . if party does nort defend suit you will order in 1 year.
even if he defends court will direct him to deposit money in court . then the party will settle with you
Devajyoti Barman
(Expert) 18 October 2011
File a summary suit for recovery of money. That would yield expeditious result.
prabhakar singh
(Expert) 19 October 2011
Law helps when you decide to enter not its text but courts provided by it,which tires mostly
and is not a fit recourse unless a situation becomes inevitable.
When you are new in business it is desirable
you take care in picking solid clients backed by good will and set some norms such as cash payment incentive's,a fixed cycle of credit,say 03 months,pre fixed interest terms for late payments,make these all signed just on the very first day of contract note.
However in case you have in hand if suit has become inevitable ,file a summary suit if you have proper documentations.
Asad
(Querist) 19 October 2011
Dear Experts,
Mr. Raj Kumar / Mr.Ajay Sethi / Mr. Barman / Mr. Shailesh and Mr. Prabhakar Singh.
Would like to thank all for the advices given and will consolidate the documents to see all process is in place to curtail further such incident.
Will also try to pursue through other business contacts if they know the client.
If at all inevitable then will proceed as adviced by the experts.
Kind regards,
Asad
RAJU O.F.,
(Expert) 29 October 2011
Go for legal action, only if it worth so much. Also try to settle the matter amicably after causing to issue a lawyer notice, demanding the dues.
