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Amey Rithe   19 April 2020

Payment of Goods sold on credit.

Hello everyone,

I'm a young business man I've started a supply of bulk poultry products (Chicken) to restaurants in Pune area.

According to market rules we work on credit period of 45 Days i.e 1st to 30/31st is billing period and next 15 days is payment period. During the payment period another month's Billing period is started.

Now there are some restaurants who I've supplied material in January February and March and the payment is still pending. The terms of payment are clearly violated.

Case 1: Supplied material in January and stopped supply in Feb due to non payment issues. haven't received payment.

Case 2: Supplied material in Feb, March and some days in April haven't received payment of Feb which was due in March yet.

We didn't have any paper work as this was a verbally binding contract. How can I recover Payment in both cases legally. Please Guide

Also to avoid such scenarios in future what should be contracts and paperwork made. Please Guide.

Thanks in Advance


 9 Replies

Ritesh Maity (Labour Law Advocate)     19 April 2020

Since there is nothing in writing, it is very diffcult to prove your case. However, you can take a chance by sending a notice immediately with details and if not rebutted, you may have some chance to pursue your case. 

For future, you need to decided the terms and conditions of your future contract upon discussion and consultation with a lawyer, preferably. It is not advisable to use copy paste generic contracts as you may miss certain points suitable exclusively for your case. But remember, having a generic contract is better than having no contract at all.

1 Like

Amey Rithe   19 April 2020

Hello Thank you for your reply.

to prove my case I've whatsapp order messages from the people working at the restaurant. also we have hand written bills written to the restaurant. And WhatsApp conversation stating and asking whereabouts of Payment

Ritesh Maity (Labour Law Advocate)     19 April 2020

You may contact a lawyer with all facts and documents (whatsapp msg/ bills etc.) and get a notice drafted by him. 

Raj Kumar Makkad (Adv P & H High Court Chandigarh)     19 April 2020

You have a  good case and everything is in writing as the wtsapp messages are also part of the evidence hence it shall be better to engage a local lawyer dealing in civil matters and got served a legal notice to the defaulting party and demand the dues with interest and cost within a stipulated time failing which file a civil suit before the competent court of law.


In future, clearly make a contract with every parties containing clearly terms and conditions and consequences in case of default by any of the parties. 

1 Like

Rama chary Rachakonda (Secunderabad/Telangana state Highcourt practice watsapp no.9989324294 )     20 April 2020

The I-T Act recognises electronic communication as proof in court. ... Legal notice or messages sent through WhatsApp messaging app are valid legal evidence under law, and the blue tick over the messaging app is a valid proof that the respondent has accepted the physical copies of the communication, said Bombay High Court

1 Like

G.L.N. Prasad (Retired employee.)     20 April 2020

It all depends on mutual relations between you and the restaurants and previous experience.  I believe that these difficulties were only during 2020, as lockdown and COVID 19 menace have started, and Pune was reeling under stress due to lockdown of many institutions including hotels.  It appears that as of now you do not have any problems and the problem is only recently attributed to COVID 19.  In business, there must be understanding and the dependable customers are very few in your business and maintaining a relationship is the key to the success of your business.  It all depends on your selection of such clients and if the client is bad, any number of precautions to take legal action becomes futile.

1 Like

Amey Rithe   20 April 2020

Reply to G.L.N Prasad,

Sir I agree these are times of crisis and everyone is facing cashflow problem and so am I. The restaurant has sold the items in month of January and February and March how am I supposed to survive and they have taken cash payment from their customer while selling. And when time comes to vendor payment they've cash flow problem. I can understand if march Payment was delayed I'd have co-operated with the clients as I want to continue and have long term relations but I don't think there is any excuse for Jan & Feb Payment.

P. Venu (Advocate)     20 April 2020

In trade, such transactions are common and it is seldom that agreements are dishonoured. The non-payments could be due to adverse circumstances. Anyhow, you can serve the defaulters notice through an advocate bringing all the facts on record.

1 Like

Arun kumar   20 April 2020

Hope this video link is useful.

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