Will my payment recovery case be time-barred after several years?
I am the proprietor of a small manufacturing concern enlisted as vendor/supplier of The WBSIDCL ('Corporation') supplying steel furniture equipment to WB Govt Hospitals. In FY 2012-13, I had supplied furniture & equipment to one State Govt Hospital against 9 sale invoices billed to the Corporation which were accepted and signed along with delivery challans by the Corporation. However, as the Corporation did not receive payments from the Hospital against its own invoices billed to the indenter Hospital, my payments have been held up. Despite several written communications in all these years, the Corporation has made no serious effort to recover the payment from its indenter and clear my payments. If I want to file a court case now seeking recovery of my dues, will it be time barred? How long will the case take to settle considering the dues to be within 5L-10L? There is no arbitration clause or payment clause in any document issued to me from the Corporation.
You can also make a claim to repossess the money the debt is owed because such a claim under the Limitation Act 1963 has a three-year claim period from when the debt was actually due. If, in truth, the invoices were created during the accounting period 2012-13, then your right to bring a claim may have been time barred unless there has been an admission of the debt or a partial payment made within the past three years. The matter could take anything from 6 months up to 2 years to settle in court, dependent upon the list and complexity.
Sir, the period of limitation for filing a recovery suit is generally 3 years from the date when the payment was due or the cause of action arose and the time for settlement depends on the complexity of the case. It is advised to consult an expert lawyer who will assist you with the best course of action. For further legal assistance contact us on our helpline number.
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