If you are stuck in such a situation, here is what to do.

There are many instances where businesses or individuals provide services, deliver goods, or complete contractual obligations but the clients or customers do not make timely payments. This can put financial and legal pressure on the aggrieved party. In such situations, the law has clear mechanisms under the Bharatiya Nyaya Sanhita (BNS) and the Bharatiya Nagarik Suraksha Sanhita (BNSS) to seek remedies for recovery and penal action against defaulters in appropriate circumstances.

Advice in such cases

• Consult with Lawyer: The very basic and important step to start is talk to Lawyer / advocate. You should not hesitate in paying his consultation fee i.e. might be in range of Rs. 10,000 to 50,000 depends case to case. He is helping you in this situation of come out. He is expert in the domain and can help you explain the procedure which you might have never explored. A good lawyer can get the issues resolved much faster than you think
• Preserve all documentary evidence like invoices, agreements, and communication with the customer.
• Send a formal legal notice demanding payment within a stipulated time frame.
• If payment is still not made, initiate civil recovery proceedings before the competent court.

Applicable Sections of Law

• Bharatiya Nyaya Sanhita (BNS) may apply for offences of cheating or criminal breach of trust depending on facts.
• Bharatiya Nagarik Suraksha Sanhita (BNSS) provides the procedural framework for filing complaints, seeking cognizance, and commencement of trial.
• Civil suits under the Code of Civil Procedure for recovery of money and enforcement of contracts.
• Arbitration law (Arbitration and Conciliation Act, 1996) may also apply if there is an arbitration clause in the contract.

If you are the complainant

• Consult with Lawyer: The very basic and important step to start is talk to Lawyer / advocate. You should not hesitate in paying his consultation fee i.e. might be in range of Rs. 10,000 to 50,000 depends case to case. He is helping you in this situation of come out. He is expert in the domain and can help you explain the procedure which you might have never explored. A good lawyer can get the issues resolved much faster than you think
• File a detailed complaint with all supporting documents.
• Explain to your lawyer the chronology of transactions and non-payment issues.
• Depending on facts, both civil recovery suits and criminal complaints (where fraud/cheating is involved) can be initiated simultaneously.

If you are the victim

• Consult with Lawyer: The very basic and important step to start is talk to Lawyer / advocate. You should not hesitate in paying his consultation fee i.e. might be in range of Rs. 10,000 to 50,000 depends case to case. He is helping you in this situation of come out. He is expert in the domain and can help you explain the procedure which you might have never explored. A good lawyer can get the issues resolved much faster than you think
• Do not threaten or use illegal methods to recover money. Always follow a lawful mechanism.
• Stay in constant touch with your lawyer to monitor the case progress.
• Keep all receipts, ledgers, and correspondence properly organised for case presentation.

How the police behave in such cases

In cases where a criminal offence such as cheating, misrepresentation, or breach of trust under BNS is made out, the police can register an FIR upon a complaint. However, where the dispute is purely contractual or civil in nature (only recovery of money without elements of fraud), police generally refuse to interfere and direct parties to approach a civil court. Hence, the advice of a legal expert becomes crucial to determine the proper course of action.

FAQs people normally have

• Is not paying dues automatically cheating? – No. Cheating under BNS requires dishonest intention at the inception of the transaction. A mere failure to pay is generally treated as a civil wrong unless fraudulent inducement is proven.
• Can both civil and criminal action be taken? – Yes, where facts support both claims. For example, recovery of money through a civil suit and criminal case for cheating may go together.
• Is arbitration better than court proceedings? – If an arbitration clause is in the agreement, arbitration provides faster resolution and reduces case pendency.

What evidence is required?

• Invoices, bills, or receipts showing the dues.
• Written contract or agreement entered into by parties.
• Email communications, WhatsApp messages, and text evidence of reminders for payment.
• Bank account statements showing pending balances or partial payments.

How long will the investigation take?

The timeframe depends upon whether the matter is pursued in civil court, arbitration, or criminal proceedings. Civil recovery suits may take 1–3 years depending upon court workload. Arbitration matters may finish within 12 months if efficiently pursued. Criminal matters under BNS can take time from registration of FIR up to final disposal, often ranging from 2–5 years. Again, the efficiency of legal representation plays a critical role.

Advocate Sudhir Rao, Supreme Court of India

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