Recovery of money
Sandeep Didwania
(Querist) 13 October 2012
This query is : Resolved
A sells goods to B for over 4 years . suddenly B stops making payment and A reminded him several times to makes the payment but B dint paid any amount. A shows the debit amountof B in his last Balance sheet as debtors. Can this be a ground for filling money suit against B??
Arvind Singh Chauhan
(Expert) 13 October 2012
Yes but I think, A should issue B a legal notice first.
Notice that ! time limit is 3 years From the date on which amount became due.
R.K Nanda
(Expert) 13 October 2012
first send a 30 days legal notice to B thereby demanding the outstanding amount.
V R SHROFF
(Expert) 13 October 2012
Agree, that Legal notice demanding dues be issued.
malipeddi jaggarao
(Expert) 14 October 2012
The question is about Limitation. Showing in the balance sheet is of no help in case of receivables. As per Companies Act, payables can be acknowledged in the balance sheet and the creditor can fall back on the entry appearing in the balance sheet as an acknowledgement. This is a remote way of extending limitation in time-barred debt which can easily contested. Telephone calls will not help in extension of limitation. However, if any part payments are made with the signature of debtor, the limitation period (3 years in this case) will start from the last part payment.
Sandeep Didwania
(Querist) 14 October 2012
B was not making the payments as per bills instesd he was paying A a lump sum amount after every purchase made as a result a certain amount remain unpaid on the day when B stopped stopped making payment. can this unpaid amount be recovered from B??? IF YES HOW?/ PLZ HELP...
ajay sethi
(Expert) 14 October 2012
send B detiled staement of account showing the detailed particulars of goods supplied and payment received . request B to confirm the statement of account .
on bais of confirmation received file suit for recovery of outstanding dues
