Dear Sir ,
Ours is a small scale Proprietorship unit manufacturing Electrical goods. It is a general practise to provide credit facility of 45 to 90 days for survival in the market. Also some vendors insist on supply of goods in CASH if we are to remain in business with them.
Under such circumstances I have faced the following incidents in the course of my business :
(1) We have been supplying goods to one of the vendor for last more than a year. He used to give the payments in cash after 3 to 6 months. We had good relations and we were receiving good orders from the vendor. Recently he started delaying the payments but he gave good orders too. At one point of time the payments climbed up to more than 1.0 Lakhs and we insisted in giving the payments as we were also facing financial constraints. We had to stop supplying of the goods to the vendor. The vendor was unhappy for stopping the supply of goods. Initially he committed of giving the payments in instalments but even after repeated follow-ups he never made the payments. He voluntarily said of returning the goods but that too was never done. I am now in a fix as I am not getting my payments. As a small time manufacturer and huge market competition the goods which we make hardly have good margins and with such episode I may have no option but to shut the door. Please guide us as to how can my payment be recovered.
(2) I had received a good order from one of my corporate clients. Initially it was agreed that the payments would be done in 60 days. Under those conditions the goods were being supplied. The payments were released as agreed. Subsequently another order was provided and the supply of goods was done. Before the due date of the payment, goods worth Rs:2.5 Lacs were already supplied. We had even taken few post dated cheques worth Rs: 80,000/- for the payments. Under such conditions the company suddenly had some financial issues and they stopped payments. The company went into liquidation and our payments could not be recovered. Even the post dated cheques got bounced for insufficient funds. The total outstanding was Rs: 2.5 lacs but because of adverse conditions I could not get the payments. Please guide us as to how can my payment be recovered.
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