Case Study


Client: To recover dues under a dishonoured cheque

Mandate: To recover dues from a disputed sale transaction

Situation:The client supplied fitness products to its customers (gym chain franchisees). As a trade convention, the client was often paid by means of post-dated cheques against delivery. One of the customers of the client issued stop payment instructions to its bank against a large-value cheque issued to our client, citing liquidity problems. The client was unable to make any headway in recovering the payment.

Resolution: We served a demand notice to the customer and sought payment within 15 days. The payment did not come through, and a criminal case under Section 138 of the Negotiable Instruments Act, 1881 was filed at the concerned court in New Delhi. In coordination with a reputed advocate, recovery proceedings are ongoing. The client is expected to receive its payment in full in late 2018.

Note: Some details may have been edited to respect client confidentiality.

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