Running-account dues are recovered by first producing a clear statement of account (bills, payments, balance), getting the buyer to acknowledge it if possible, then sending an advocate's notice for the balance; bounced cheques go under Section 138, and a summary suit or Samadhaan claim follows if the notice is ignored. Limitation for a mutual running account can run from the end of the year of the last entry. The free consultation reviews your khata and tells you what is claimable. Nothing upfront; 30% on recovery.
Turning a khata into a claim
- Prepare the statement. Every bill with date and amount, every payment received and its date, and the running balance. Tally or any software can produce it.
- Match bills to proof. For each bill, the challan, LR or e-way bill, and ideally the buyer's GST credit on it.
- Find acknowledgements. Balance confirmations, "hisaab" messages, part payments, requests for time.
- Identify the buyer correctly. The legal name on the GST registration, not the shop name.
With these, the notice demands a specific sum, not "whatever is in the khata".
Common trader problems and the answers
| Problem | What the law and practice say |
|---|---|
| No written orders, only phone calls | Delivery proof and the buyer's acceptance establish the contract |
| Buyer says the balance is wrong | Send the statement formally and demand a reconciliation; undisputed part is claimed at once |
| Payments were in cash | Your receipts and ledger entries are evidence; the buyer's own books usually match |
| Very old entries | Mutual, open and current accounts: limitation may run from the year-end of the last entry; the expert checks |
| Post-dated cheques given as security | If presented and bounced while a debt was due, Section 138 can apply |
Routes for traders
Advocate's notice with the statement attached, then negotiation; most buyers in the same market settle because they want to keep sourcing and want no case on record. Bounced cheques go under Section 138 within the deadlines. If ignored, a summary suit for the certain sum shown by the statement. Udyam-registered traders should check with the expert whether the Council route is open to their registration category. See customer not paying invoice and the limitation period calculator.
Next steps
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.
Trading hubs with their own pages: Delhi, Kanpur, Indore, Siliguri and Amritsar. See also trade debt recovery in Jodhpur and the Hinglish consultation page.
Last reviewed: 2026-10-08. Information for Indian businesses; not legal advice.