Payment not received by a big firm
We are a sole proprietorship firm supplying various industrial goods to bigger jute mills and industries. One of the big Jute mills we've been supplying to for a very long time have not made payments for the goods supplied to them since over 4 years now. We are tired of asking and begging in front of them since last two years. We have the necessary documents, bills etc. They are a much bigger firm and we feel going for a legal battle against them would just take ages to reach to a conclusion and also incur too much extra expenditure. We would be obliged if you could help us out or tell us about the options we have in front of us. Thank you.
Apart from time factor, it might also create friction in your business relation. But you surely have a fit case to approach the court. I am sure you have tried sending a legal notice.as well.
I would strongly suggest you to opt for alternative dispute resolution. In your case, i would advise your for arbitration as the other party has been dodging the issue for years without payment. However their willingness to agree for arbitration is important. Mediation and conciliation are good alternatives but are not as effectice as arbitration.
You can find any arbitration centre in your locality (can suggest you some centre if you could share your locality) or go for online arbitration forum such as http://legalreferee.com/. The award (decision of arbitrator) is equivalent to order passed by courts. It also has a time frame for completion of the case.
Hope this helps
Recovery of bills amount have to be claimed within three years from the date of last payment or the transaction. In case if the suit for recovery of money has filed after the expiry of 3 years it would dismiss for default on the limitation ground itself. If you have mentioned the arbitration proceedings in the agreement or in the bill then try the same speediously without making any further delay.
Firstly file a police complaint about the issue. According to Limitation Act, a suit of recovery of money can be initiated within 3 years from the day it is due. Thankfully in your case, you still have time to initiate a suit of recovery of money under order 37 of Civil Procedure Code, 1908. You should send them a legal notice for a final call to make the respective payment, if they still do not respond, you should institute suit at district court of your area, where the cause of action arose according to section 6 of Civil Procedure Code, 1908.
You can institute a suit for specific performance of contract, i.e. payment of the dues. Part II of the Specific Relief Act, 1963 lays down detailed rules for specific performance of a contract.
Or either you can initiate a suit under section 405 of Indian penal Code, 1860 that enumerate criminal breach of trust that will make them liable for an imprisonment of 3 years, and out of that fear they might pay you your dues.