Debt recovery
skn
(Querist) 06 April 2012
This query is : Resolved
Dear Sirs,
Please provide the info. about the rules and regulations, act/law relating to debt recovery from customer in pvt sector industries.
Is there any law in India similar to Fair Debt Collection Practice Act?
Regards,
Mr. Sonappa
9967692192
Deepak Nair
(Expert) 06 April 2012
What is the issue in your case??? Please specify for better understanding of query and a satisfactory answer.
skn
(Querist) 06 April 2012
Sir,
There are few customers who have not paid to us Rs. X, to whom we have sold material some were 3 to 4 yr back. In some cases there is a communication for followup but in few not.
As the amount is big we want to recover it. Now we have communicated to them the same but they are careless in response.
If we can prove the delivery of goods and demand the money, where does it stand in law provision? Is the the issue is time bound ie. recovery period..
What are the legal remedies available to us and under which act? Being a Law student I want study the same along with if any case law available.
Y V Vishweshwar Rao
(Expert) 06 April 2012
It appears that it is the Recovery of Price of the Goods supplied and delivered to Customers . File suit for recovery of the Price of the Goods supplied to your customers . Issue Legal Notice demanding the Price of the goods& interest for delay , file the suit in court for recovery of the amount / price of the goods & interest. There will be limitation for filing the suit, this aspect is to be verified with the facts of the case , acknowledgment/s / Running account / Part Payments etc - consult Local Advocate for filing the suit.
ajay sethi
(Expert) 06 April 2012
you cna file summray suit for recovery of outsatnding amount . contact a local lawyer . issue legal notice and then file summary suit
Deepak Nair
(Expert) 06 April 2012
Yes. Summary suit can be filed in this case for recovery.
Kiran Kumar
(Expert) 06 April 2012
you have got ordinary civil law remedy as advised above.
file a case through a local lawyer.
prabhakar singh
(Expert) 07 April 2012
Before deciding to take any step I advise
you to do a little home work about law of limitation.
Each sale made has a distinct cause of action and can be realized with in three years from the date of sale unless there is a running a/c between you and your party,in which case three years would be counted from the date on which the last balance was mutually struck.
If your debited customer has acknowledged the balance due on him with in three years from the date of the sale then limitation shall get extended for three years from the date of such acknowledgement.
If your case does not fall with in any of limitation criteria detailed above then your claim has become TIME BARRED and realization by institution of a suit can not be made unless you succeed in persuading your debited customers to give you a 'Promise to pay cum acknowledgement note'in your favor which again would be alive for three years from its date.
RAJU O.F.,
(Expert) 07 April 2012
If the dues are leglly recoverable, you cause to issue a legal notice and if necessary you will have to file suit.
Saibal Guha Roy
(Expert) 08 April 2012
I agree with the above replies. Additionally, if the debt is within limitation and your customer is a Ltd. Company or Pvt. Ltd. company, it is better to file for liquidation of your customer as it is a faster way of recovery.
skn
(Querist) 09 April 2012
Dear Sirs,
Thank you for you valuable views.
Regards,
Sonappa
prabhakar singh
(Expert) 10 April 2012
most welcome!though i wish you do not have problems.
