Deny payment based on behavior

how much is the amount involved/ see apology does not cost anything . however if purchaser fails to make payment it will take years to recover money . so be humble and apologise

Dear Mr  Ajay, Thanks for your response. That is definitely the right thing to do. Let me explain the situation in more detail :

There is this client who is supposed to release payments to me in about 8-9 milestones. Till now every milestone has been paid at least 6-8 weeks delayed. It happened this time as well. I had requested him to release this payment (which should have been released on 20th sept) before Diwali so that I could give my staff some bonus. When I didnt see that happening on Monday, it turned into a frustrated exchange, wherein I said that your organization is very unprofessional in terms of meeting its contracts. Now they say you have abused us, so apologize then only i will pay.

My fear is that this will keep happening. there are 3 more milestones to go. he will delay everyone of them and i will not have the liberty to even make such a tiny remark in frustration ...

My question was from that perspective. Can he do that legally ?

Learned Mr. Sethi has given practical and wise advice.

Once you have recovered all payments, if you wish you can lodge claim for interest/penalty for delay in payments @ agreed terms which you might have expressed on bills or in agreement. You can take a call and discontinue future business.

Some clients have nuisance value. It is better to avoid head on conflict with such entities.

If you are running your business on credit then you have to remain careful as a word of mouth can also result in delay in payments. Gradually you can introduce incentives/CD on cash/advance payment.

Kindly consult your lawyer to introduce bare min. standard terms in your transaction/bills/terms and conditions.

to succeed in business you ahve to be humble . legally it depends upon terms of your order . when was payment to be made ? do you have written purcase order/ /

Customer CANNOT DENY PAYMENT ON CHARGE OF MISBEHAVOIUR , unless it was a provision in the Contract itsel.

If Misbehaviour has criminal tones the matter is different

The Contract must have penalty clause for late payment

The best Course is to apologise on Phone and get the payment .

After this you can  send a notice claiming penalty  (which must be heavy calculated to single Paise BUT ACCORDING TO CONTRACT ) and add DAMAGES ALSO

CAs/Advocates are expert in inflating the amount and make it look judicious, so that you may get something.

Till then suspend further supplies to him

He will definitely refuse

Till the finalisation of this demand , you will pass all milestones not supplying him further

Cancel the Contract and be happy

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Mr. Ajay is right opinioned