How Can MSME Lawyers in Faridabad Handle Commercial Disputes?
Faridabad supplier is supplying you goods on industrial scale as per PO . Customer take away material and don’t make fuss over quality . But not paying you money . Second firm has a Service contract dispute. Third Firm has multiple unpaid invoices and has Arbitration clause.
All these can be categorized under MSME dispute but technically they might or might not come under one forum.
There can be many types of commercial disputes which you can take your MSME lawyer in faridabad court. But the thing you need to understand is that your case falls under their criteria . It can be Commercial court dispute , MSEFC (Micro and Small Enterprises Facilitation Council) or Arbitration or Mediation etc . There can be many other forums where your commercial disputes can be addressed.
Filing your matter in wrong forum because it is commercial dispute may lead to certain consequences. So understanding your commercial dispute and what forum would better help you is very important.
Every city in India has businesses . Faridabad being a hub has many industrial houses who trade in various products. Manufacturers , business houses and suppliers who have continuous or long term PO with certain companies can have Commercial disputes.
Lets take an example. When someone owes you money and doesn’t pay for a period of time . And then stops paying you altogether. You can get in touch with our MSME Lawyers Faridabad to help you out with these commercial disputes in the most efficient way possible.
BK Singh Advocate handles following MSME cases on daily basis.
Some of these cases can be categorized under MSME delayed payment. But other can be contractual dispute cases, MSEFC proceedings or many more. It all depends on the contract you have with the company, type of business you do and what remedy you want against the opposing party.
Can MSME lawyer take up Commercial disputes?
Yes they can. But again the thing to remember is that every commercial dispute has different knowledge of where the dispute can be filed. So hire an lawyer who knows what forum you need to solve your commercial dispute.
Why MSME lawyer in Faridabad Court needs to understand your Commercial disputes?
As businesses in faridabad mostly trade on trust and with a longer duration contracts. A Supplier might supply the material to a buyer on weekly basis and raise invoices against the same.
Buyer tells the supplier that you don’t worry about your old dues I will pay you. This goes on for few months until someday you realize , Oh! there’s a lot money pending from my customer.
A commercial dispute is not just one invoice you didn’t get paid. You need to see if you have any PO against it. If the party has acknowledged receiving the material. Were there any deductions of money? Any Debit notes? Was there a quality issue ? You might even want to claim Interest on late payment. You also need to understand the Jurisdiction and Limitation period for your case.
Small companies hire workers, they have there own household expenses. Delayed payment can cause extreme difficulties for MSMEs. Since they have there own overhead costs like salaries to employees and EMI’s which needs to be paid to banks. Hence if you’re one such business facing late payment you should act quickly and take the legal route.
BK Singh Advocate will help you understand the difference between a commercial issue and your cause of action. Sending a Legal notice or Demand notice for money is not gonna solve your issue.
These commercial disputes can happen between 2 people of Faridabad or your client can be from anywhere in india. Client can be from faridabad but you need to pay a supplier who is from UP.
As explained above we can take up dispute between 2 persons if any one of them is from Faridabad. If your suppliers office is panjarised under Faridabad jurisdiction, we can also help you recover your dues from a customer who might be from anywhere in India. As per section 18 of MSMED act which is currently in effect. It says if supplier’s office address falls under the region where MSEFC has power to take jurisdiction. They will take notice of your dispute.
Quick run through
Any dispute which arises out of normal business of a merchant, trader, banker or financier and all other person who performs commercial transactions. Construction, distribution or sale, consultancy etc. all come under commercial dispute.
If your dispute satisfies all the above criteria and has a value of ? 3 lakhs or more than commercial courts have power to hear that dispute.
Value is ? 3 lakhs as of now. But Government may notify more higher value to which commercial courts can attract.
MSMED act only takes care of micro and small enterprises who are unable to receive payment for there business. Only because you’re an MSME doesn’t mean you can file a delayed payment case.
Interest can be charged against the due amount. As mentioned in section 16 of MSMED act. Interest will be calculated on compound interest basis monthly with 3 times the bank rate which is notified by RBI.
You cannot approach Commercial Court if you have a Commercial dispute. Similarly you cannot approach MSEFC for your delayed payment from a MSME. They’re 2 separate provisions for 2 different situations.
Customer can file a security deposit as high as 75% of the ordered amount before they can appeal the order. They have to do this as per section 19 of MSMED act.
What Type of disputes come under Commercial Dispute when it comes to MSME?
If 2 companies have a disagreement between them. It can be termed as a Commercial dispute. One of the party can be an MSME or both of them can be.
Example: Money can be due from one company to another. Services can provided by one company to another. Any type of situation where 2 businesses have a dispute it can be commercial.
There can be a commercial dispute between 2 people who never considered themselves as MSME’s. But yes if a Factory from Faridabad sold its machinery and has not been paid for it. It will come under MSMED Act as stated above.
There are lot of factors to consider when you have a commercial dispute with someone. Majority of people think just because they have an invoice, they will get the money.
BK Singh Advocate will first analyze what transaction has happened between you and the other party. We don’t simply say because you have an MSME party we can solve your problem.
Lawyers need to understand what YOU want to achieve from your opponents. Do you just want to recover your money? Do you just want damages from them? Do you want them to stop doing something that is negatively affecting your business. These are many situations where you would need a Commercial lawyer to assist you with your dispute.
Can every MSME issue be sorted by MSEFC?
No, not every MSME dispute can be sorted by MSEFC. Every time people contact us for their MSME disputes they think just because they have an MSME party that we can take the matter to MSEFC council.
As said above only specific disputes can be sorted under Micro and Small enterprises facilitation council. If you want your customer to refer payment to you. Your case needs to be under section 15-17 of MSMED act. There can be instances where you yourself are an MSME and want to file a dispute against another company for a contract disagreement. You both can have a property dispute . Partner disputes . Many commercial lawsuits which cant be sorted under MSEFC.
Just because you’re a Medium sized company doesn’t mean you’re covered under MSMED Act. It is very important to understand what kind of MSME you’re registered as. And how can we can assist you for your commercial problem.
People sometimes rush into wanting to recover there money through MSEFC. This can cause a lot of preliminary objections to your case. Avoid them by consulting a lawyer.
Can the customer file a case against MSME?
Yes. We have previously talked about how MSMED act helps you if you’re an MSME and the other party hasn’t paid you. But what if you’re that customer who has received a legal notice for payment of money from a supplier.
Customer have every right to object their disagreement against a MSME.
Since it’s a council they will hear both of your arguments why you haven’t paid and why you should pay. Customer not paying on time can cause numerous reasons.
Supplier didn’t supply you enough goods. Contract was not adhered to. Supplier had a pathetic service level agreement with you.
These can all be reasons why you haven’t paid your supplier. Just make sure you have paperwork that can back your statement. If you purchase material from a company and accept the material during delivery. And 2 months later decide to create a fuss that you received less quantity or it was of poor quality.
Then the council will not hear your side because when you accepted the materials you signed that there was nothing wrong with the supply. Keep documents that can support your disagreement.
Hire someone who can represent you properly and let you know what you’re entitled to when your in a commercial dispute.
Any documentation that supports your cause of action.
If you have maintained good documents you’re case can be made easier for you. Just because you have an invoice from the other party. Doesn’t mean you will get your money back. BK Singh Advocate always ensures that his clients know importance of documents when fighting your commercial disputes.
When should you contact an MSME Lawyer
We mostly see that clients reach out to us when they have already blown the situation. Relationship with the customer or supplier is beyond repair. You should contact a lawyer as soon as you know you have a big amount pending from your customer and they’re not promising to pay you. You’ve just found out new information about your contract that you were unaware of. Or maybe the other party has served you with a MSEFC notice. Contact a MSME Lawyer as soon as you feel you’re unable to settle your dispute.
Jurisdiction is something to look out for. Sometimes contracts have a Jurisdiction clause on the invoice itself stating Faridabad or under the Master contract there can be clause of Arbitration or Jurisdiction. See where your matter falls under and consult a lawyer.
Always consult a lawyer before you accept a full and final from anyone. You think you’re owed ?50,000 from the opposite party but you settle for ?40,000. You should always consult a lawyer to see what can be done about your situation.
You might not need a lawyer to file a case against someone. But do atleast consult one to see if you’re doing the right things.
Commercial Court vs MSEFC. Are they the same ?
No. We learned above these are 2 different things to sort out your commercial issues. Commercial Court has their own set of rules which your dispute needs to satisfy in order for you to file a case. MSEFC goes by MSMED act.
If MSEFC passes an order in favor of the supplier. Then as a customer you have to deposit 75% of that amount before you can challenge it to court. If you hire MSME Lawyer make sure they keep you updated on any consequences before the case is finalized. BK Singh Advocate will always make sure you know of what will happen if you don’t follow certain rules and regulations. But remember each law is different for every case you hire a lawyer. So have a basic understanding of what you can get away with.
Mistakes customers do while trying to recover there dues
You should always maintain a healthy relationship with your customers and suppliers. We often see people having there finances mismanaged because they don’t have proper paperwork. Kind of sold something to a customer but didn’t have a PO at time of supply. You haven’t got an acknowledgment from the party that material was received.
If you tell court one day that you had no money to pay that person when you supply them material. And then in your reply to the court says that money was never due to you. It creates inconsistency with your statement.
Settling your money with the customer can also cause confusion. How much were you supposed to take and how much did you settle for?
Avoid going through this process by yourself and get a lawyer to deal with your customers.
Our MSME Lawyer will help you with
BK Singh Advocate understands that every client who contact us have different problems. We need to understand your situation and let you know the best possible way to deal with your opponents.
You may think you can get your money from your customer. Or maybe you want to take your oppose to Commercial court/arbitration. Whatever you want us to do for you. We, BK Singh Advocate will tell you everything you need to know.
No lawyer in the world can guarantee that you will 100% recover there money from there clients. There are various circumstances which can affect your case. Documents, limitation period and even your opponent. So hiring a lawyer will not guarantee you money back but they will guide you through these situations.
If you have any business running in Faridabad and need help recovering money from your customer or want to sue them. Contact our MSME lawyers who are based in Faridabad Court.
FAQ’S on MSME Lawyers
Q1. Can MSME lawyers help me with my commercial dispute?
Ans. If the commercial dispute that you are facing comes under MSME yes you can. There can be numerous commercial disputes and the remedy you want from your customer. We can guide you if your case can be solved by our MSME Lawyers or should we go to commercial court/arbitration etc.
Q2. I have an MSME business can I take a case against customer who lives in another city/state?
Ans.As mentioned above you can file a case at any place where your MSME business operates. If your office registeration is in faridabad and you have registered your business under MSMED act. Then YES you can file a commercial dispute against any company anywhere in India.
Q3. Will all my unpaid invoices be considered as MSME case?
Ans. No. As mentioned above there are conditions for your commercial dispute to be filed under MSME. If you run a micro and small business and you have some money pending with you from your customer. Then yes you can contact us.
Q4. Can I directly take my commercial case to Commercial Court?
Ans. Yes but first you have to understand that not every dispute can be solved at a commercial court. Till now for any case to be filed at a commercial court. It has to meet a minimum value and the dispute should come under Head of Commercial Disputes. If you want to know more you can contact our team of MSME Lawyers. Who can guide you better with your commercial dispute.
Q5. Do MSME lawyers deal with arbitration?
Ans.Yes. If your case qualifies for arbitration than your dispute can be solved with arbitration. There can be disputes where both arbitration and MSME will apply on your dispute. It all depends on what type of commercial dispute you have.
Q6. What if my customer says that my material was faulty?
Ans. First understand if your customer has any proof for his statement. Sometimes it can happen that your supplier says that the material you supplied is of low quality or not up to the specification. We will help you gather information to outmatch his statement. But sometimes you might have supplied your customer material which was below your standards. And your customer knows about it. Hiring the best MSME lawyer will give you the best chance to win your commercial dispute.
Q7. Can I ask interest on money that my MSME customer owes me?
Ans. Yes if your case comes under MSMED act you can ask interest from your customer for late payments. As mentioned in section 16 you can charge interest to the money which will be added on top of the amount.
Q8. My customer received a letter from MSEFC can he appeal to the court?
Ans. Yes your customer can appeal to the court. But before that they would have to pay 75% of the amount pending MSEFC can allow them to appeal. They will also have to follow the arbitration act rules. Speak to your lawyer if your customer wants to appeal to the MSEFC decision.
Q9. Should I send a legal notice to the customer who hasn’t paid me?
Ans. If you think that sending a legal notice will make your customer pay you up. We can prepare a legal notice and send it to your debtor. But remember not every commercial dispute can be sorted by just sending a legal notice. Sometimes you can directly approach MSEFC or go for arbitration. Speak to your MSME Lawyer what you want to do next.
Q10. How long should I wait to contact a MSME lawyer?
Ans. Contact our team as soon as you know that your customer has not paid you and has no intention to. We can guide you through the whole process. Remember sometimes you’ll have to rush up and take your dispute to court or arbitration. So better you know what type of commercial dispute you are in at earliest.
Conclusion
We hope you learned from the above FAQ that MSME lawyers do help you with your commercial disputes. But you need to know whether your dispute is categorized under commercial. If talking to our MSME Lawyers help you get your payment. Then that’s great if not we can help you through other legal methods to get you your money. There are lots of factors you need to consider when you want to get money from a customer who owes you.
Always ensure that you have MSME lawyers like BK Singh advocate on your side who know what they are doing when it comes to commercial disputes. If you want any help with your commercial disputes or just want to know more about MSME call us!
