Business trade

Querist : Anonymous (Querist) 17 June 2020 This query is : Resolved
I distribute good to the purchaser, on a regular basis for many years, now one of the purchasers has made default in payment, how can I recover the money for the good already sent to him on credit without the bill. and what is the limited time period for the recovery of money?

the only proof I have is the bill of transportation and the transporter having the receiving of the Purchaser and it was usually our trade of business for many years.

Follow Query

Report Abuse

Rajendra K Goyal (Expert) 17 June 2020
You have supplied the goods to purchaser. No bill, no proof of receipt of goods by him, means there is nothing to prove the supply and the debt.

Even if you file a case, you are standing on a weak footing.

Querist : Anonymous (Querist) 17 June 2020
Rajendra sir what if we have a bill of transportation, and the transporter having the receiving of the purchase?

Raj Kumar Makkad (Expert) 17 June 2020
I differ with the opinion as expressed above. The transportation bill and delivery challan duly signed by the purchaser is a solid proof of the receipt of the goods, however, the rate and the amount of the goods generally is not mentioned on the delivery challan sent through transporter.

The purchaser can dispute over the amount but not on the receipt of the goods. The recovery suit is required to be filed after due notice. It shall also be better to first try to get the recovery by involving Traders Union (Vyapar Mandal) etc. and if nothing comes out then you shall have to file the civil suit within 3 years of the said receipt of the goods.

Dr J C Vashista (Expert) 18 June 2020
Did you claim the amount outstanding against the bill ?
Move a pre-institution mediation application u/s 12A of the Commercial Court Act, 2015

Rajendra K Goyal (Expert) 18 June 2020
The author has not mentioned the amount involved.

Moving under Commercial Court Act can be a good avenue.

How he has supplied the goods without proper bill?

In case of any legal action, whether the said purchaser can lodge complaint with the GST department, in such case what are proposed mitigating steps by the author.

As the author is having receipt of the goods supplied, he should discuss with local lawyer first.

Asgher Mahdi (Expert) 18 June 2020
Apart from transportation receipts and payments due you need to have books of accounts and how it's maintained, continuous, current accounts? Then can be claim. 3 yrs is the limitations.

Rajendra K Goyal (Expert) 19 June 2020
During the trial, proper explanation regarding no invoice / bill has to be given to the satisfaction of the court.

Querist : Anonymous (Querist) 19 June 2020
rajendra sir is it ok to say it is usual custom trade of business between us?

Raj Kumar Makkad (Expert) 19 June 2020
even if no proper bill was issued but the delievery of challan is under possession duly received by the opposite party and having proper accounts in the books supported with the reminders to make the due payment are sufficient to move ahead in the commercial court. The author has very good case to succeed.

Rajendra K Goyal (Expert) 20 June 2020
It may be the custom; law is above custom. You should proceed only if having enough proofs.
Do you have GST no. and license?
Whether the goods were purchased on bill, if not, how it was shown?
Have you any reliable explanation why invoice was not prepared as per law while transporting the goods to destination?
What would be explanation if question raised during proceedings and if complaint lodged with Tax department.
Try to recover by society / personal pressure.