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Sidhhi   09 August 2025

Recovery of sales amount

What's the quickest way of recovery of money from defaulting dealers who refused to pay on time or delay payment once goods are received on credit which is unavoidable. Is there any special provisions MSME units for recovery of the dues? TIA



 3 Replies

Dr. J C Vashista (Advocate )     10 August 2025

Such laws are yet to be legislated by the Parliament of India.

However, arm twisting tactics adopted against such dealer(s) may help you, which may not yet been legalised in India.

T. Kalaiselvan, Advocate (Advocate)     10 August 2025

If the dealer is not paying the deal amount then legal action to recover it is the proper option before you 

You may better file a money recovery suit to recover your dues. 

Vishesh K Sapra (Advocate Supreme Court (888-215-3399))     11 September 2025

Hi Siddhi ji, 

If a dealer has received goods on credit and refuses or delays payment, the quickest recovery route is usually a legal notice followed by proceedings under the applicable law. For general cases, you can file a summary suit under Order 37 of the Civil Procedure Code in civil court, which is a fast-track method for recovery of debts based on written contracts, invoices, or bills.

If you are registered as an MSME under the MSME Development Act, 2006, there are special provisions in your favour. Under Sections 15–18, buyers must make payment within the agreed period (or within 45 days if no period is agreed). Delayed payments attract compound interest at three times the RBI bank rate, and disputes can be referred to the Micro and Small Enterprises Facilitation Council (MSEFC) for quick resolution, often through conciliation and arbitration. The award of the Council is treated like a court decree and can be enforced directly.

I have dealt with MSME matters previously, feel free to reach out for further guidance adv.vishesh@icloud.com


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