Commercial Debt & Retention Recovery for Manufacturers, Heavy Machinery Makers & OEM Ancillary Units

Under Section 42 of the Sale of Goods Act, 1930, putting delivered machinery into commercial production without timely written rejection constitutes deemed acceptance. Once accepted, Section 59 bars unilateral rejection and preserves your suit for price under Section 55. Pair E-Way Bill Part-B records, installation logs, PLC/production output evidence, and the buyer's GSTR-2B/3B Input Tax Credit availment (CGST s.16(2)(b)) inside an advocate demand notice before escalating to MSEFC (if Micro/Small) or Commercial Court.

No. Section 2(n) of the MSMED Act, 2006 restricts statutory 'supplier' protection strictly to Micro and Small enterprises, and Section 43B(h) of the Income Tax Act follows the same boundary. Medium Enterprises (and units that registered only after the supply contract, per Silpi Industries) face threshold dismissal at MSEFC. They should route claims ≥ ₹3 Lakh to Commercial Courts via Section 12A mediation, Order XXXVII CPC summary suits, Section 138 NI Act on dishonoured cheques, or IBC Section 8 for undisputed defaults ≥ ₹1 Crore.

Under Section 170 of the Indian Contract Act, 1872, a job-worker or supplier who renders skill and labour on bailed raw material or dies holds a statutory Particular Lien over that specific worked batch until machining or modification charges are paid. However, unless an explicit general-lien clause exists in the contract, retaining unrelated goods or older dies creates criminal breach-of-trust exposure under BNS s.316—so batch segregation and CGST s.143 challan hygiene are mandatory.

Under Section 43B(h), any sum payable by a buyer to a Micro or Small supplier beyond the Section 15 MSMED cap (15 days without written credit terms, or maximum 45 days with agreement) and remaining unpaid at March 31 is disallowed as a deductible business expense for that financial year, triggering an immediate 25.17%–34.94% cash tax liability and mandatory Form 3CD Clause 22 tax-audit disclosure. Additionally, Section 23 MSMED Act renders any 3x RBI compound interest paid completely non-deductible.

Yes. Under Section 16(2)(b) of the CGST Act, 2017, a buyer cannot legally avail Input Tax Credit unless goods have actually been received. Demonstrating that the buyer accepted your tax invoice in GSTR-2B/IMS and offset ITC in GSTR-3B—corroborated by E-Way Bill Part-B vehicle details, FASTag toll movement, and Tally/SAP ledgers certified under Section 63 of the Bharatiya Sakshya Adhiniyam, 2023—creates strong documentary estoppel against false 'non-delivery' pleas.

If the buyer repudiates a custom-engineered PO after GAD drawing approval and alloy procurement, Section 39 and Section 73 of the Indian Contract Act entitle you to recover actual raw-material and Work-in-Progress (WIP) expenditure minus realizable scrap salvage, plus reasonable loss of profit (guided by A.T. Brij Paul Singh). Serve an immediate anticipatory-breach notice freezing WIP inspection evidence before liquidating bespoke assemblies.

Yes. Under our Dual-Track onboarding, plant finance controllers can submit a single overdue buyer or dealer account at ₹999—attaching multiple unpaid tax invoices, POs, and E-Way bills in one notice—to verify advocate drafting, BSA s.63 server certification, and tri-channel Email + WhatsApp + Speed Post RPAD tracking before launching 10–10,000+ CSV batch dispatches via Representees.