For engineering supplier dues the free consultation reviews the PO and its terms, drawings and specifications, inspection and test reports, GRNs or MRNs, rejection notes and their timing, and the ledger. Most engineering suppliers are Udyam-registered, so the route is usually an advocate's notice claiming principal plus MSMED Act interest, followed by MSME Samadhaan before the state Council if unpaid. Nothing upfront; 30% on recovery.
Where engineering payments get stuck
- GRN or MRN delayed because the buyer's inspection is pending
- Rejections raised weeks after receipt, after the goods have been used
- Debit notes for rework, line stoppage or logistics without agreement
- Tooling and development costs never covered by a PO
- Schedule amendments that leave finished goods uninvoiced
- Price revisions for raw material not approved retrospectively
The MSMED Act works especially well here
Under the MSMED Act, the "day of acceptance" is the day of delivery, unless the buyer objects in writing within the agreed period (which cannot exceed 15 days). A buyer who raises a rejection after that period has, in law, accepted the goods, and the 45-day clock has been running since delivery. Interest accrues at three times the RBI bank rate compounded monthly. This single rule disposes of most late-rejection arguments. Use the MSME interest calculator to see the figure, and see the engineering industry page.
Documents to bring
- Udyam certificate
- Purchase orders with terms, drawings and schedule amendments
- Invoices, challans, e-way bills and GRN or MRN copies
- Inspection and test reports; any rejection or debit notes with dates
- Correspondence on quality, rework and price revisions
- Ledger with payments received and their appropriation
Routes and next steps
For Udyam-registered units: advocate's notice claiming principal plus statutory interest, then MSME Samadhaan before your state's Council, which conciliates and arbitrates with a 90-day target; the buyer must deposit 75% of any award to appeal. For medium or unregistered suppliers: notice, then a summary suit on the PO and invoices or arbitration if the PO provides. Bounced cheques go under Section 138. If you decide to go ahead, a dedicated advocate is assigned within 24 hours of your complete documents and the legal notice goes out as an e-notice, followed by registered post. Nothing is charged upfront. If you proceed, FundRaksha Legal charges 30% only on the amount actually recovered; if nothing is recovered there is no success fee. Court fees, where a matter is filed, are borne by you and told to you in advance.
Engineering clusters: Pune, Coimbatore, Rajkot, Faridabad and Ludhiana. See also auto components and steel and metals.
Last reviewed: 2026-10-08. Information for Indian businesses; not legal advice.