Sir, I have to take my payment from my customer party & he is not paying

Sir, you must issue a formal Demand Notice to the other party, calling upon them to clear the outstanding dues within a specified period. If the other party still fails to clear the outstanding dues, you must then file an application for mandatory Pre-Institution Mediation and Settlement under Section 12A of the Commercial Courts Act, 2015, before the court or the designated authority. If the mandatory mediation process fails to result in a settlement, you may then proceed to file a formal Recovery Suit before the appropriate Commercial Court under the provisions of the Commercial Courts Act.

Based on the facts stated, it is my considered opinion that you have supplied fabric worth ₹4,12,536 to your customer in the ordinary course of your textile business, the goods have been duly delivered and accepted, and despite being financially capable, the customer has failed and neglected to make payment. Once goods are supplied and accepted, the buyer is legally bound to pay the invoice amount, and deliberate non-payment amounts to a breach of commercial contract. You therefore have a valid and enforceable legal right to recover the outstanding amount along with interest.

Since this transaction is a business-to-business commercial transaction, your claim falls within the definition of a commercial dispute under the Commercial Courts Act, 2015. As the amount involved is specified and arises out of invoices and supply of goods, you are entitled to file a commercial recovery suit before the designated Commercial Court having jurisdiction. However, before filing such a suit, the law now requires mandatory pre-litigation mediation, unless urgent interim relief is required. Accordingly, you must first apply for pre-litigation mediation through the Legal Services Authority, where notice will be issued to the buyer to participate in mediation. If the buyer settles the matter during mediation, the settlement has the same legal effect as a court decree. If the buyer fails to appear or no settlement is reached within the prescribed time, you will receive a mediation failure report, after which you are fully entitled to file a commercial suit.

Upon filing the commercial suit, you may claim recovery of ₹4,12,536, along with contractual or reasonable interest and litigation costs. Commercial Courts are meant to ensure speedy disposal of business disputes, and summary procedures are often applied in clear recovery cases like yours. Given that the buyer is capable of paying but is intentionally withholding payment, your case is legally strong, and the commercial suit route, preceded by pre-litigation mediation, is an effective and lawful remedy.

In conclusion, it is advised that you immediately initiate pre-litigation mediation as required by law and, upon its failure or non-participation by the buyer, proceed with filing a commercial recovery suit to secure payment of your dues with interest and costs, without further delay.