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Rajnish   19 November 2015

What can be done when clients not paying their due amounts.

Dear Sir/Madam,

I run a small business (Partnership Firm - having 2 partners) in Delhi for supplying Manpower Recruitment Services to various business clients that include MNC's, Reputed companies, partnership firms, sole propreitorship firms, educational institutions, etc all over Delhi/NCR.

Though we have signed contracts with these clients generally on our letter head (one copy remain with us & one copy remain with our clients). Still many companies do not honour contract terms specially payment part. Some clients give late payments which is not a big problem but some clients did not give us any payment neither respond us on mail or call & when we visit client offices guard does not allowed us to enter.

So, i need help & following are my questions - 

1. Can i threaten them on mail for registering FIR & Legal action against them before sending them actual Legal Notice as it involves cost. Though i know we can do legal case but can i actually register FIR (online or offline) against such clients.

2. If Legal action is to be done then can we go for criminal case or just a civil case which comparatively involves must time & cost. Is there any shortest route which is more effective.

3. Most of our bills are in the range of Rs 15,000 to 40,000. So can we ask for refund of Legal fees + Harassement Cost incurred by us from such clients through court.

4. Somebody has also suggested us to file Winding-Up of company for recovery of money. Is winding-up case a good option. Can we file Winding - Up on companies only or any other business identity as well like Partnership or Sole Propreitorship.

Kindly answer & help.

Regards



Learning

 1 Replies

Nitish Banka (lawyer)     20 November 2015

Dear Rajinish,

You may file a ssuit for recovery in civil courts, but first send them a well drafted legal notice.

Thanks & Regards,

Nitish Banka

9891549997


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