Customer not paying

We are a service provide. A customer (Indian arm of a well known multinational) has taken service from us for over 6 months but have paid only for 1 month. The situation is like this:

We have entered in an agreement to provide a software consultant working for them on monthly pay model. The resource was directly working for them under their guidance. They have never once compalined to us about any issue. They have approved the time sheets and have even asked us to submit the invoice. In good faith we have submitted the 6 invoices and have even paid the entire service tax for all the 6 months.

They have however paid only the 1 invoice. There was some change in their management and new IT manager refused to pay. On asking them the reason they have indicated that they have not recieved the ROI on this. 

Giveing the ROI was never our responsibility. It was a T&M project and our part of committment ends by providing a resource which is acceptable to them (they never complained about the resource). We have all emails as proof.

Now they are not paying and talk of ridiculous offer like paying 25% (which barely covers the service tax we have already paid on that.

(1) Do you think we can legal action against them?

(2) Is it worth the effort? Does it results in sucecss in India?

(3) What is the bst way to move forward - step by step?

Thanks in advance!


Engage a very able counsel specializing in such matters and show all docs/communication/inputs on record.

Build irrefutable record and evidence.

Remain gentle and amiable and refutse 25% payment.


Your counsel shall help you to proceed methodically after due examination of inputs on record.


The unpaid promised/contactual amounts are debt.




did your agreement have an arbitration clause?

Just consult with an advocate and go for a complaint. It may be settle

Just consult with an advocate and go for a complaint. It may be settle



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