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Aditya Gangrade   24 July 2021

Cancellation of purchase order

Sir/ Madam,

We were Issued 100 Purchase order from a company valued at 3 to 5 Lac each with a project cost of 4 crore approx. Payment terms were 100% within 30 Days from date of supply.
The company accepted material for around 60 Purchase Order and also cleared payment for 50+ but is not picking up material for the balance Purchas order. There is no quality issue or delivery issue for which this is being done. Its been 2 years we are chasing them for it but they are only trying to buy time and play around as they know we have a huge outstanding with them already.
They do not want to continue with the same project and so they are not accepting delivery for the same material.
Please let me know if you can help.
We are in a bad mess and the COVID19 situation has made it worst for us to even survive now.


 3 Replies

Rama chary Rachakonda (Secunderabad/Highcourt practice watsapp no.9989324294 )     24 July 2021

is there any agreement for the business ?. If so follow the agreement terms. or else choose other option to sell it. 

Aditya Gangrade   24 July 2021


We were issued Purchase orders for all the values from the client. They have same in there records and we have proof of mails for same too. Its a company we were dealing with and every thing was on paper not verbal.

PO terms were 


"Dispatch of consignment within 30 days from the date of purchase order failing which the consignment will be liable for rejection or suitable penalty would levied and no claims from supplier would be entertained by us whatsoever in this regard.

" Warranty

One year from the date of Supply.

Terms of Payment

The payment would be released after 30 days from the date of submission of invoice..

Terms of Delivery The material should be properly wrapped and packed with Bubble sheets and corrugated paper alogn with foam corner guards to ensure no damages during transport time. Necessary images are mandatory to be shared by the supplier to us, before placing the consignment in the vehicle. Wooden crates packing would be advised in case of fragile items/consignment unless otherwise specified. Shipping Instructions As above


Nitish   08 October 2021

If There Is Contract Of Sale In Which You Have Transferred The Property (Right In Ownership Of Goods)To The Buyer And Buyer Hasn't Paid The Amount Even You Have Mentioned In The Contract Of Sale Thus The Contract Is Breached By Buyer Without Any Lawful Excuse. Therefore You Are An Unpaid Seller According To Section 45 Under The Sales Of Goods Act 1930 Thus You Have Right Against Goods And Buyer. You Can Retain The Goods As Per Your Right Of Lein Under Section 47.And Right To Claim Damages From Buyer.Right To Sue For Price.

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