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Minkie (Service)     18 September 2008

Procedure for Recovery of Short Payment to Company

Please help.  My company A delivered goods to company B exactly as per their order. They accepted our Invoice and signed our delivery challan as received in perfect condition as per order.  Payment terms were 30 days but they paid only after 90 days and that too it was a Short Payment by Rs 3lacs directly into our bank account without any intimation or explanation for the short payment.  We sent many reminders and a final demand notice which are completely ignored. My question:

My company will file a Summary suit at Bombay High Court .  Is it to be filed as  Company "through Director"?  Or should we file it with both Company & Director as Plaintiffs?  The reason is because I as the Director want to plead myself as it is a very straightforward case with proper documentation.  If I engage a lawyer, the legal fees will end up being more than the claim of Rs3lacs. 
If the Plaintiff is only the Company, will I as Director be permitted to plead on behalf of the Company?

I realise that this is how cheaters get away scot free because if the claim is less than a certain minimum, the legal fees will be more than the  claim so one is forced to write off as a bad debt.  But in this case I am determined to recover the amount.

Thanks in advance.


 4 Replies

ASHUTOSH (lawyer)     22 September 2008

dear sir you did not write her about thr transasion what goods your compant supplyed. see the juridection depend on the facts and sercumtanses of the case to case as per law juridection has to be seen where defendants resides or where cause of action arose. next need not to go to your director bombay a company can authorized to any of his employe to sue to defendants or director can also file a case against defendant



Minkie (Service)     23 September 2008

Thanks for your reply.  Jurisdiction is Mumbai as stated in our Invoice which was acknowledged by the purchasor and remittance of short payment was recd in our Mumbai bank a/c.

My question is basically this, if the Vendor Company files the suit through the Director, will the Director be permitted to plead in person on behalf of the Company?  This action is viable only in these circumstances, because if our Company engages a lawyer, the legal fees will end up being more than the actual claim amount.  Any replies appreciated.

ASHUTOSH (lawyer)     23 September 2008

yes sir you can file a suit through directors



jatin sharma (LAWYER)     25 September 2008

hi , study ur problem its not a ur only ,i appriciate u that . u thought about u r company .but its case of company not any specificed sole person, u don,t bother ur company handle this matter personaly ok

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