Non payment of dues
Neelakandan
(Querist) 13 January 2012
This query is : Resolved
We have supplied to one of clients about 3 years ago but not received the payment till date. Every time the client states that his payment is blocked and not paid by his customers due to which he is unable to pay us. After waiting for 3 years, now we have concluded that we'll go legal against this client. But unfortunately we lost all the invoices, purchase orders given by the client. We have only 1 balance confirmation letter given by the client in Aug'10. My query is that can we file a case against the client with this a proof of outstanding? What are my chances of getting the money?
ajay sethi
(Expert) 13 January 2012
when was balancce confirmation given?
suit has to be otherwidse filed within period of 3 years from supplies made .
yes you cna file suit on basis of acknowledgement of libailty but you be in fix if defendant denies having signed balance confirmation or denies having received goods
Sankaranarayanan
(Expert) 13 January 2012
As per the confirmation of balace you can Is any advance received for supply of material. What kind of business u r doing. R u come under mfg or retailler
Advocate. Arunagiri
(Expert) 13 January 2012
Balance confirmation letter issued by your client is sufficient to initiate civil suit, for recovery of money.
Raj Kumar Makkad
(Expert) 13 January 2012
As the confirmation was made during the month of Aug 2010 so you have sufficient opportunities to file a suit for recovery even without having original invoices but you may be got allowed secondary evidence due to loss of primary evidence.
prabhakar singh
(Expert) 14 January 2012
You had right to sue for realization of your
dues with in three years from each date of the sale,any acknowledgement must be made with in time to save the limitation as laid down in section 18 of Limitation Act.
You state you are at loss of all bills and vouchers then how can you prove that 'Balance confirmation letter of AUG2010' in your possession was made with in three years of the first date of credit sale.Do you maintain regular a/c books in ordinary course of your business with a cash book balanced daily and day to day transactions are recorded there in and these are also recorded???????
If not then you shall fail to prove,rather even to frame a proper suit explaining about how the suit is within limitation.
IN MY OPINION TO BE SUCCESSFUL BY A SUIT YOU NEED SUCH AN ACKNOWLEDGEMENT WHICH NOT ONLY STATES THE BALANCE BUT ALSO A PROMISE TO PAY AS PER SECTION 25(3) OF INDIAN CONTRACT ACT.
HENCE FIRST TRY TO GET ONE OF THE KIND I HAVE SPOKEN ELSE FILE THE SUIT TO BE REJECTED EVEN BEFORE ANY TRIAL.
