Business & company › Unpaid invoices & business dues
Supplier took advance and didn’t deliver
What usually matters in this situation, and the papers to keep ready before you meet an advocate or free legal aid (call 15100).
Make my own list — free, 2 minutesPapers to gather
- All invoices, with dates and GST details
The core of the claim. Where: Accounting software. - Proof of delivery/acceptance (delivery challans, sign-offs, completion emails)
The 45-day clock and your claim run from acceptance. Where: Your records, client emails. - Ledger of the client's account, payments received and balance
Shows exactly what is due. Where: Accounting software. - Legal demand notice and proof of delivery
Usually the first formal step. Where: Your advocate.
You may also need, depending on your answers
- Contract, purchase/work order and any amendments — Defines scope, price and payment terms.
- 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.
- 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.
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.
Saboot will also ask
- 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?
- When was payment due?
Similar situations
- Customer company not paying my invoices
- MSME — buyer delayed payment beyond 45 days
- Government department not paying my bills
- Foreign client not paying
Sources
- Micro, Small and Medium Enterprises Development Act, 2006
- MSME Samadhaan — delayed payment complaints
- Limitation Act, 1963
The full guide: A client or buyer hasn't paid my business · All situations