New LIVE Course: Learn the Practical Nuances of IPR Drafting by Adv. Gautam Matani. Register Now!
LCI Learning

Share on Facebook

Share on Twitter

Share on LinkedIn

Share on Email

Share More

Divey Khullar (Prop)     05 January 2014

Money recovery suit against hotel

If feasible can I ask you something


We as a company gave a hotel Food ingredients and culinary material on bills in April, May and June 2013 but the hotel has not given the payments on repeated requests even when the payment period was mutually agreed at 45 days on mail by the Purchase Manager.


we gave a legal notice to the hotel in Sept 2013 on which in agreed on the amount and said that the fullpayment would be made on 30th November 2013 but till now we havent got the payment even after repeated mail and calls.

What can we do now to extract our money. What can be the extent of penalty in this scenario.

Firstly if we file a money recovery suit can we put opportunity costs in that since our money which would have been in circulation and fetched a return of 10-12 percent per month was duped in the hotel and was not in circulation.

Secondly hotel sat on our money and continued to work as normal and earned hefty amounts from the customers. Salaries were paid in time, bonuses on festivals was paid on time, new year bash/party went as usual.

Thirdly the hotel broke the commitment of paying the entire amount back by 30 th November 2013 that it made in the reply of the legal notice.

Kindly suggest what to do.


Hoping for a reply from your end.



Divey Khullar


 6 Replies

H. S. Thukral (Lawyer)     05 January 2014

In the recovery suit, you can claim interest as well from the date you issued notice.  

Divey Khullar (Prop)     05 January 2014

Cant v claim on the amount that we lost due to non rotation of money for 6 to 8 months. We earn around 8 to 10 percent per month. Would the hotel liable to pay those damages also

BHARTI KOTHARI (practising advocate)     05 January 2014

You Can File suit for recovery of amount and in that you are entitled for interest at the rate of 18% per annum till you actually receive the payment in your hand and further you are also enitled for the damages and advocate fees and other incidental charges....

Advocate Bhartesh goyal (advocate)     05 January 2014

Either you can claim interest on outstanding and due payment or compensation but can't claim both together.  

Divey Khullar (Prop)     05 January 2014


The money invested in the distribution business is usually taken under a limit from the bank on which bank charges 13% compound interest.

Secondly the since the hotel has not paid the amount as per the agreement of 45 days, if the hotel would have paid in time the money would have been used to supply some other materials to other hotels or wholesalers and thus we lost onto the opportunity of earning money. So why should not the hotel pay that amount as compensation.



SKapoor_Lawkonect (Lawyer)     06 January 2014

Hi Divey, you can file a civil suit for repayment of your pending amount alongwith the interest liable to be paid by the buyer. You may also go for payment of damages and advocate’s cost from the buyer alongwith the incidental charges. As the amount to be paid to you arises out of a contract you executed with the sales manager and as the details of payment within 45 days was clearly mentioned you shall also attach your communication with the hotel by way of mails or any other method to show that you have given sufficient notice and time to them before filing for a civil suit for the same.






Leave a reply

Your are not logged in . Please login to post replies

Click here to Login / Register