delay in the pending amount to be settled for the material supplied in the sites of our clients

+1 vote
asked Apr 27, 2016 in Audit by munni
Hi Sir/Madam,

 we as a house keeping material supply firm  ,supplied the material to a private firm ,whose clients are in Hyderabad ,which accounted to be around 2.45 lakhs  in the month of february. they ought to be clear the amount by end of february but they are  not doing it and simply postponing by saying today and tomorow. and I would not have bothered if i would have continuing the business ,right now they searched for other vendor in hyderabad .so please advice me how could Iget my money back

2 Answers

0 votes
answered May 21, 2016 by Env Coord
edited May 21, 2016 by Env Coord
Do you have any work order issued by the Company before/after engaging your services ?
Before any payment is made to a vendor, the company generally deducts TDS (Tax Deduction at Source). Any TDS deducted has to be deposited by the Company before May,31st and TDS certificate has to be issued by June,30th.

Wait till June,30th for issuance of TDS certificate. Don't rush into filing a case or approaching a lawyer at this stage.
Right now you just request the company to issue TDS certificate. Once they do that, then give them a letter via email or Registered Post (AD) asking them to pay your dues and mention the time-limit for payment. That is give them 15 or 30 days time to clear your payment. If they fail to pay your money within the time-limit specified by you, then write another email or letter stating that you will take legal action for non-payment of your dues. Even in this letter give a time-limit of 15 days. And if they fail to pay within 15 Days, then send a Lawyer's Notice to the company stating that you will sue them for non-payment of your outstanding dues.

After that file a Suit under Order 37 of C.P.C. (Summary Suit) against the company for recovery of your outstanding dues with Interest and compensation. Since, your dues is less than Rs. 20 Lakhs, the case will be heard at your District where you reside/carry out business. Summary Suits are decided by the Courts at relatively faster pace than other regular civil suits, as the provision in the Summary Suit is in favour of Plaintiff/Petitioner.

I know my advice is little bit exhaustive but by adopting the steps instructed, you will be able to make a good case for Summary Trial under Order 37 of C.P.C.

Another alternative is to file a Criminal Case under Section 420,406,415,120-B,34 of the I.P.C. against the Owner/M.D. of the company.

Please consult an advocate before taking any steps mentioned above.
Please not that I am not an advocate, but have filed a case in past similar to your's and even won that case.
My advice is purely based on experience.
0 votes
answered May 26, 2016 by cvjadhav Experts
Dear Sir/Madam, you have every right to get your hard money from the said client who is in Hyderabad, you have to issued a legal notice immediately, if he failed to do so, you have to file the suit for recovery of money in the jurisdictional civil court.... best of luck... kindly click upvote button, it will be token of appreciation.... by Chandrashekhar Vithal Jadhav, Advocate & Legal Consultant, Bangalore.
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