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PHi, so we, as part of our business, gave this person certain goods on credit amounting to roughly 46L, in 2023. However, the payment for the goods was not regular.
Fast forward to today, we have received around 16L over the course of one and a half years, with 30L still due. As security, we had 16L worth of cheques from the guy and he has been avoiding all calls for 2-3 months now. Payments are very irregular and he pays in installments of 1L in every 3-4 months.
We recently decided that we want to move to court on the matter, so we deposited 3 cheques worth 10L and they were returned. I have a few questions that I need answers to before I consult an advocate and proceed with the matter.
1) How long will it take for the case to be conculded? Depending on the payment frequency (which btw is not sure will continue) we will MAYBE recover the complete amount (that is IF we do) in around 6 years or 7 probably. So is it worth to move to court?
2) What if the other party does not show up for the hearing? What if there’s an excuse for not showing up? Will the case be delayed or will the judge begin proceedings?
3) Once the court passes the judgement, what if the person still doesnt pay up? What happens in that case?
4) The registered proprietor is not present at the place of business, rather he’s is currently residing in Delhi, pursuing an MBA degree. Will that prove as a complication? Also, what if we “incentivise” the police to go at the place of business to make an arrest for appearance in court, but the guy needed is not present, its his father, how will that work out?
Here’s additional details that might be helpful:
– Both the parties are registered under the GST Act. We have proof of debt (invoices).
– Cheques only worth 16L are held by us not the complete amount.
– The person who is the registered proprietor of the firm, is currently studying in delhi and is not present at the place of business.
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BLawyer here, based in Delhi. You have two separate remedies here: a criminal complaint for cheque bounce and a civil suit for recovery of the full outstanding amount.
* Yes, recovery through court will take time. A cheque bounce case itself may take 2–4 years depending on the court’s workload. A civil recovery suit for ₹30L could take even longer. But continued informal recovery at ₹1L every few months is also not sustainable. Filing now may put legal pressure on him to settle.
* Courts usually issue bailable warrants after repeated non-appearance, then non-bailable ones. So yes, initial delay is possible, but courts do not wait forever. Eventually proceedings will continue, and ex parte orders can be passed if he keeps avoiding.
* You will have to file an execution petition to enforce the decree. This can involve attachment of property, bank accounts, etc. It is a separate process, and unfortunately, it adds more time.
* That is not a legal barrier. Notices can be served at his residential address, and he can be summoned there. As for “incentivising” police: avoid that. If the court issues a proper warrant or summons, the police are bound to act. His father cannot be made to appear in his place.
* Since you have GST invoices and bounced cheques, your case has merit. Whether to proceed depends on whether you want to wait passively for small amounts over years, or formally pursue recovery now to apply pressure.
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PHey, thanks a lot for your reply, that really clears things up. Just please help me with this one thing, I dont have his current residential address to serve the notice, or you know attach it in case the court issues a warrant. How do i solve this problem?
[Edit] I forgot to add something, when the court will issue a warrant, can it be addressed to the current residential address of the guy?
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BYou can start by using the last known address for sending the notice. If that fails, the court can allow service through alternative means like publication in a newspaper. During the case, you can also ask the court to direct the police to trace his current address. Since he is pursuing an MBA in Delhi, the police may be able to obtain his details from universities in Delhi if the court permits. The law does not let someone avoid proceedings simply by disappearing.
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Pthank you so much. thats really helpful. im sorry for too many questions but just this one more thing if you dont mind, its kind of a dumb one but i would like to clear it anyway. There’s no way a person can deny legal summons right? say at the place of business, no one can deny that they have been summoned right?
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BNot a dumb question at all.
A person can refuse to accept a summons, but that does not invalidate the summons. If someone at the place of business or residence refuses to accept it, the process server can record the refusal, and the court may treat it as valid service.
In some cases, the court may then allow substituted service, such as affixing the summons at a visible place on the property or even publishing it in a newspaper. So, no one can avoid legal proceedings just by refusing to accept a summons. The system has safeguards to deal with that kind of avoidance.
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