Kool RT 21 July 2025

U claimed goods by client made under his brand label

Hello,

We are a small company in to manufacturing of readymade garments. We have a client who got garments made from us on FOB basis, under his brand label. Unfortunately his order ahead with his client got cancelled so half of his stock is lying with us since almost 9 months now.

Despite numerous communication and follow ups, they haven't picked the goods nor ready to give us an NOC. We have major storage and financial constraints so unable to keep the goods with us any longer but if I deface the brand, I go in to a huge loss.

I need help on a few pointers:-

1. if there is any government body wherein I can raise a case that can help me in this scenario.

2. Legal implications of selling the goods as it is? Considering they haven't kept up to their side of deal, all verbal. We haven't signed any MOU or contract, just exchange of emails related to the order.

Expert guidance will be highly appreciated. Thank you.

Reply Follow

4 Replies

T. Kalaiselvan, Advocate (Advocate) 22 July 2025

You first issue a legal notice to the client demanding the balance of payment towards the goods ordered and also to take the stock from yu immeditely failing which he has to pay rent for the same till he takes them away.

Since he has paid an amount as advance it can be deemed that there was an oral mgreement between you oth hence it may be considered as breach of contract conditions

Kool RT 22 July 2025

Thank you for your reply sir but no advance had been received. The order confirmation exists on email. Partial stock has been picked by a proper Purchase Order too. We also have their confirmation on email that they have delayed as they are stuck asking us for more time. This pattern has been going on since months!

P. Venu (Advocate) 22 July 2025

There is no other option other than initiating civil action after serving a legal notice, as suggested. Being a commercial suit, the court is expected to dispose of the matter expeditiously.

SHIVKUMAR AGNIHOTRI, ADVOCATE, (Advocate ) 22 July 2025

1. The party has placed order on e mail and part of the order have been collected. The party has given assurance it means accepted and confirmed the order.

2. Please issue a legal notice by hiring a prudent lawyer who guide you and help to recover the money through court of law.