Business & company
A client or buyer hasn't paid my business
You have more routes than a regular suit: the MSME council, a commercial suit, arbitration or insolvency. The records decide which is best.
Answer a few questions and get your list →What the law says
Micro and small suppliers must be paid within the agreed period (never more than 45 days), with compound interest at three times the RBI bank rate on delay. Commercial disputes of ₹3 lakh or more go to commercial courts, usually after mandatory pre-institution mediation. Insolvency against a company needs a default of at least ₹1 crore.
General information, not legal advice.
Papers that usually help
- Contract, purchase/work order and any amendments
Defines scope, price and payment terms. - All invoices, with dates and GST details
The core of the claim. - Proof of delivery/acceptance (delivery challans, sign-offs, completion emails)
The 45-day clock and your claim run from acceptance. - Ledger of the client's account, payments received and balance
Shows exactly what is due. - Emails/messages agreeing terms or promising payment
Fills gaps where nothing is signed. - Udyam registration certificate
Needed for the MSME council route. - File a delayed-payment reference on the MSME ODR portal
Councils can mediate, arbitrate and award interest at three times the bank rate. - Ledger confirmations, part-payments or emails admitting dues
Strong evidence and may extend the time limit. - The client's complaints and your replies
Decides which remedies are realistic. - Legal demand notice and proof of delivery
Usually the first formal step. - Debtor company details: CIN, registered office, directors, charges
Needed for notices, suits and insolvency. - GST returns showing the invoices
Corroborates the supply; the client's input credit records may also show acceptance.
Questions Saboot will ask you
- Who owes you?
- How much is unpaid (approximately)?
- Is your business registered as a micro or small enterprise (Udyam)?
- What do you have in writing?
- Has the client raised any complaint about your work?
- Does the contract have an arbitration clause?
- When was payment due?
- Has the client admitted the dues (ledger confirmation, part-payment, email)?
Sources
- Micro, Small and Medium Enterprises Development Act, 2006
- MSME Samadhaan — delayed payment complaints
- Limitation Act, 1963
Common situations
- Customer company not paying my invoices
- MSME — buyer delayed payment beyond 45 days
- Government department not paying my bills
- Foreign client not paying
- Supplier took advance and didn’t deliver
Also searched as: unpaid invoice, client not paying, payment pending, msme delayed payment, msme samadhaan, msme odr, recovery of dues, commercial suit, insolvency notice, ibc, operational creditor, vendor dues