HIMANSHI JAIN & ASSOCIATES
Advocates & Legal Consultants
- COMMERCIAL RECOVERY · B2B DISPUTES-
A business owes you money.
They've stopped responding.
Unpaid invoices, broken contracts, a supplier who took the advance and disappeared — these are the everyday realities of doing business in India. The law provides a clear, structured route to recover what you're owed. Our office handles commercial disputes from the first demand letter through to actual recovery of money.
₹3L MINIMUM THRESHHOLD
Commercial Courts handle disputes of ₹3 lakh and above
Under the Commercial Courts Act, 2015, any business dispute worth ₹3 lakh or more is heard by a dedicated Commercial Court — not the regular civil court. Commercial Courts follow stricter timelines, have mandatory mediation, and are designed to resolve business disputes faster. Below ₹3 lakh, the matter goes to the regular civil court.
DOES THIS SOUND LIKE YOUR SITUATION?
Common business diputes we deal with.
Every commercial recovery starts with a simple problem — someone owes money and isn't paying. Here are the situations we see most often.
(i)
Unpaid invoices
You delivered goods or services. Invoices were raised. Payment was due 30, 60, or 90 days ago. Follow-ups get ignored. The amount sits in your books and hurts your cash flow.
Most common commercial dispute in India
(ii)
Broken supply contract
A buyer or supplier backed out of an agreement mid-way — after you'd already committed resources, blocked inventory, or turned down other orders. The breach has cost you real money.
Breach of contract — Indian Contract Act, 1872
(iii)
Advance paid, goods never delivered
You paid an advance to a vendor or supplier for goods or raw material. The delivery date passed. The goods never came. The vendor keeps making excuses or has stopped picking up your calls.
Recovery of advance + damages for non-performance
(iv)
Distributor or dealer dispute
Your distributor or dealer isn't settling accounts, is diverting payments, or is selling outside the agreed territory. The business relationship has broken down and money is stuck.
Common in FMCG, pharma, and consumer goods
(v)
Service agreement default
An IT vendor, marketing agency, consultant, or contractor didn't deliver what was promised — but your payments went out on time. The project failed and you want your money back.
IT, marketing, and professional services contracts
(vi)
Partnership or JV money dispute
You invested in a partnership or joint venture. The other partner isn't sharing profits, is diverting funds, or is refusing to return your investment. Accounts don't add up.
Partnership Act, 1932 · Companies Act, 2013
THE LEGAL ROUTES
Three ways to Recover your money.
Depending on the amount, the documentation, and whether you have a contract — different legal routes apply. Choosing the right one saves time and money.
OFTEN THE FASTEST
Summary Suit(Order 37 CPC)
Best when the debt is based on a written document — signed invoice, agreement, or acknowledged amount.
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The other side must get court permission just to defend
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If their defence is weak, decree without full trial
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Much faster than a regular suit
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Works for invoices, contracts, and acknowledged debts
MOST COMMON
Commercial Suit
(₹3L and above)
Used when the dispute involves mixed evidence, quality complaints, or contested terms.
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Full trial procedure with strict timelines
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Written statement must be filed in 120 days
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Case targeted for disposal within 12 months
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Costs can be awarded to the winning party
IF CONTRACT HAS A CLAUSE
Arbitration
If your contract has an arbitration clause, this is the mandatory first route.
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Private proceedings — not in open court
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Often faster than court litigation
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Arbitrator's award is enforceable like a court decree.
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Under the Arbitration & Conciliation Act, 1996
OUR PROCESS
From the first call, step by step.
Every commercial recovery follows a similar path. Here's what happens at each stage — with realistic timelines.
I
You bring us the documents
Invoices, contracts, emails, WhatsApp messages, delivery challans, bank statements — whatever you have. We review the strength of the claim, check limitation periods, assess jurisdiction, and give you a straight answer on whether the case is worth pursuing.
Day 1 — Free initial review
II
Legal notice goes out
We search the Trade Marks Registry to identify any existing or pending marks that may conflict with yours. You receive an honest read on availability — clear, risky, or likely to face objection — before you commit to filing.
Week 1–2 — Often settles the matter
III
Pre-institution mediation (for commercial suits)
Under Section 12A of the Commercial Courts Act, mediation is mandatory before filing. We take you through one session at the mediation centre. If the other party doesn't show up or mediation fails, you get a certificate to proceed to court. This step adds 3–5 weeks but is legally required.
3–5 weeks — Mandatory for commercial suits
IV
Suit is filed in court
The suit is filed in the appropriate court — Commercial Court for ₹3L+ disputes, regular civil court for smaller amounts. Court fees are paid based on the claim value. Summons is issued to the other party.
After mediation certificate
V
Trial — pleadings, evidence, arguments
Both sides file their written statements. Documents are exhibited. Witnesses are examined and cross-examined. Arguments are heard. Commercial Courts have stricter timelines than regular courts — the written statement must come within 120 days, and the case is targeted for disposal within 12 months of filing.
12–24 months — Typical to judgment
VI
Decree and actual recovery
Once the decree is in your favour, if the other party doesn't pay voluntarily, execution proceedings begin. This can include attachment of bank accounts, garnishee orders (money owed to the debtor by third parties is redirected to you), property attachment, and other enforcement measures under Order 21 CPC. We take cases through to actual collection, not just the judgment.
Through to recovery
WHAT WE HANDLE
The full range of commercial recovery work.
(i)
Demand Notices
Drafting and sending formal legal notices for unpaid invoices, contract breaches, and outstanding dues — within the framework that makes them count in court later.
(iii)
Commercial Court Suits
Full representation in Commercial Courts for disputes of ₹3 lakh and above — from filing through trial to judgment. Includes mandatory pre-institution mediation under Section 12A.
(v)
Interim Relief
Applying for freezing orders, attachment before judgment, and injunctions — when there's a risk the other party will move their assets before you can recover.
(ii)
Summary Suits (Order 37)
Filing fast-track recovery suits for documented debts — where the claim is based on a signed invoice, contract, or written acknowledgment of the amount owed.
(iv)
Arbitration Proceedings
Initiating and defending arbitration under the Arbitration & Conciliation Act, 1996 — filing claims, presenting evidence, and enforcing arbitral awards.
(vi)
Decree Execution
Taking court orders through to actual money recovery — bank attachment, garnishee orders, property seizure, and all other execution tools under Order 21 CPC.
COMMON QUESTIONS
Straight answers to Common Worries...
POPULAR LEGAL QUESTIONS
Q I don't have a formal contract — just emails, WhatsApp messages, and invoices. Is that enough to file a case?
In many cases, yes. Indian courts accept electronic records as evidence under Section 65B of the Evidence Act. Emails, WhatsApp conversations, invoices, purchase orders, delivery challans, GST returns, and bank transfer history can all prove that a deal existed and money is owed. Many commercial recoveries are won without a single signed contract. The strength depends on what you have — bring it all and we'll assess.
Q The other party says the quality was bad and that's why they're not paying. What now?
This is one of the most common defences in commercial disputes — and often it's raised only after payment is demanded, not when the goods were actually delivered. The question the court asks is: did they complain at the time of delivery, or only after you asked for money? If they accepted delivery without objection and raised quality issues only when the invoice came due, their defence is weak. The timeline of communication and delivery challans signed at the time of receipt are critical.
Q The amount is only ₹2 lakh. Is it too small for a Commercial Court?
Below ₹3 lakh, the matter goes to regular civil court — not the Commercial Court. But it's still recoverable. A legal notice alone often resolves disputes of this size — the cost of going to court usually exceeds the disputed amount, so most people pay up when they see a notice. If it does go to court, the regular civil court handles it. We give you an honest cost-benefit before recommending the route.
Q Do I really have to go through mediation before filing?
For commercial suits, yes — Section 12A of the Commercial Courts Act makes pre-institution mediation mandatory. You don't have to reach an agreement — you just have to attempt it. If the other party doesn't show up, or if one session of mediation fails, you get a certificate that lets you file the suit. The process adds 3–5 weeks but can sometimes lead to a quick settlement. There are exceptions for urgent matters where delay would cause harm.
Q The other business is in Mumbai but I'm in Delhi. Where do I file?
Jurisdiction depends on where the cause of action arose — which can include where the contract was made, where goods were delivered, where payment was due, or where the defendant has an office. If your contract has a "subject to Delhi jurisdiction" clause, that usually settles it — you file in Delhi regardless of where the other party is. Without such a clause, we assess based on the facts. Often, more than one city qualifies.
Q Can the court freeze the other party's bank account before judgment?
Yes — through an order for attachment before judgment under Order 38 CPC. If you can show the court that the other party is likely to hide assets, move money out, or dispose of property to avoid payment, the court can freeze their bank accounts or attach property even before the final judgment. This isn't granted routinely — you need to demonstrate real risk. But when it's granted, it's one of the most powerful tools available.
Q How long does this whole process take — honestly?
Honestly: most commercial recovery cases take 12 to 24 months to reach judgment. The Commercial Courts Act has strict timelines — written statements within 120 days, cases targeted for disposal within 12 months — but courts don't always meet them. The practical reality is better though: a large share of cases settle at the notice stage (1–2 months), during mediation (2–3 months), or early in court when the other party realises you're serious. Full trial is the exception, not the norm.
Q My contract has an arbitration clause. Does that mean I can't go to court?
If your contract has a valid arbitration clause, the court will likely refer you to arbitration instead of hearing the suit directly. Arbitration can actually be faster than court — the proceedings are private, the arbitrator's timeline is fixed, and the award is enforceable like a court decree. We handle arbitration proceedings under the Arbitration and Conciliation Act, 1996, from claim filing through award enforcement.
Q Can I recover my legal costs from the other side?
Commercial Courts are better about costs than regular courts. Under Section 35 of the CPC as applied to commercial disputes, courts can and do award costs to the winning party — including lawyer's fees in some cases. The amounts are at the court's discretion and may not cover your entire legal expense, but they're more substantial than what regular civil courts typically award. In arbitration, cost awards tend to be even more generous.
Q The other company has shut down or gone into insolvency. Can I still recover?
It depends on the entity type. If it's a proprietorship or partnership, the owners are personally liable — their personal assets can be attached. If it's a private limited company, you can pursue the company's assets, and sometimes the directors personally (if there was fraud, personal guarantee, or wrongful trading). If they've entered formal insolvency under the IBC, you need to file your claim with the Resolution Professional within the deadline published in the public announcement. Missing that deadline can cost you the claim entirely.
TAKE THE NEXT STEP
REACH OUT
A short conversation tends to clarify a lot.
Bring whatever documents you have — invoices, contracts, emails, messages, delivery challans, bank statements. The more detail, the clearer the assessment. Even if things are messy or incomplete, we work with what's available.
The first conversation is short, free, and without commitment. We look at the facts, check the timelines, and tell you straight whether the case is worth pursuing — and what it would take.