Step 1: Get your documents in order (day 1)
- Invoice(s) with GSTIN and due date
- Purchase order, email or message confirming the order
- Delivery challan, e-way bill, lorry receipt or acceptance of service
- Ledger statement and every message about the payment
- Udyam certificate if you are a micro or small enterprise
- Cheque and bank return memo if a cheque bounced
Step 2: Send a written reminder with a statement of account (days 1–7)
Email and WhatsApp a polite but formal reminder with the statement attached and a clear date. Keep it short. This creates a record; many buyers pay here.
Step 3: Call the decision-maker, not the clerk (days 7–14)
Speak to the owner or finance head. Ask for a date and confirm it in writing afterwards. If you are an MSME, mention that interest at three times the bank rate is accruing under the MSMED Act.
Step 4: Legal notice (day 15 onwards, or day 1 if a cheque bounced)
A notice from an advocate puts the buyer on record and starts statutory timelines. For a bounced cheque it is mandatory within 30 days of the return memo. FundRaksha sends it within 24 hours of your documents, at no upfront cost.
Step 5: Choose the legal route if the notice is ignored
| Situation | Route | Where, for Tiruppur |
|---|---|---|
| Udyam-registered supplier, payment over 45 days late | MSME Samadhaan | Tamil Nadu Micro and Small Enterprises Facilitation Council |
| Cheque bounced | Section 138 complaint | Judicial Magistrate courts, Tiruppur, for Section 138 |
| Invoice or contract dues, no real dispute | Summary suit | District Court, Tiruppur, and its Commercial Court for recovery suits. |
| Contract with arbitration clause | Arbitration | Tribunal per the clause |
Recovering B2B dues in Tiruppur: what is specific here
Tiruppur is India’s knitwear capital, with thousands of job-workers, dyers and garment units billing exporters and domestic brands. Domestic dues between units are mostly micro and small enterprises on both sides, so the MSME Act’s 45-day rule and Samadhaan apply; overseas buyer dues need a different approach.
Main industries: knitwear and garment exports, dyeing and processing, textile machinery, packaging and logistics.
Courts: Judicial Magistrate courts, Tiruppur, for Section 138; District Court, Tiruppur, and its Commercial Court for recovery suits.
MSME claims: Udyam-registered micro and small suppliers in Tiruppur file on MSME Samadhaan, heard by the Tamil Nadu Micro and Small Enterprises Facilitation Council (Commissionerate of Industries and Commerce (MSME Department), Government of Tamil Nadu, Chennai). The Council sits where the supplier is, so a Tiruppur supplier can pursue a buyer in another state from home.
Step 6: Secure the settlement
Get any payment plan in writing with dates and post-dated cheques or a mandate. A missed instalment then has its own remedy.