The free legal consultation compares the five legal routes for payment recovery in India against your facts: legal demand notice, MSME Samadhaan, Section 138 complaint, summary suit and arbitration. You hear which fits, how long it takes, and what it costs: nothing upfront, 30% on recovery, court fees disclosed in advance.
Route 1: the legal demand notice
An advocate's notice sets out the invoices, the amount, the interest claimed and the consequences of non-payment, and gives a deadline. It is the first step in every FundRaksha matter and the last step in about 60% of them. 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.
Route 2: MSME Samadhaan
For Udyam-registered micro and small suppliers. File online at samadhaan.msme.gov.in; the claim goes to the Micro and Small Enterprises Facilitation Council of your state, which conciliates and then arbitrates. Interest runs at three times the RBI bank rate, compounded monthly, from the day after the 45-day (or agreed) period. The Council is meant to decide within 90 days, and the buyer must deposit 75% of any award before appealing. See your state's Council on the state pages.
Route 3: Section 138 complaint
Where a cheque has bounced. Notice within 30 days of the return memo, 15 days for payment, complaint within the following month before the magistrate with jurisdiction. Criminal consequences (up to two years' imprisonment or a fine up to twice the cheque amount) make this the most persuasive route when the deadlines can still be met.
Routes 4 and 5: summary suit and arbitration
A summary suit under Order XXXVII of the Civil Procedure Code suits a fixed sum on an invoice or written contract where the buyer has no real defence; the buyer must seek leave to defend. Arbitration applies where the contract has a clause; the tribunal's award is enforced like a decree. Both must be started within three years of the due date or the last acknowledgement.
| Route | Who can use it | Key deadline |
|---|---|---|
| Legal notice | Any supplier | None, but sooner is better |
| MSME Samadhaan | Udyam-registered micro or small | Within 3 years; interest from day 46 |
| Section 138 | Holder of a bounced cheque | 30 days notice, 15 days to pay, 1 month to file |
| Summary suit | Any supplier with a fixed written claim | 3 years |
| Arbitration | Contract with arbitration clause | 3 years |
What you should bring to the legal consultation
- The unpaid invoice(s) and payment terms
- Purchase order, delivery challan, e-way bill or proof of service
- Messages, emails or letters about the payment
- For a bounced cheque: the cheque and the bank return memo
With these, the expert can say on the call which route applies. 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. For a city view, see legal debt recovery in Hyderabad or in Chennai, and the fee calculator.
Last reviewed: 2026-10-08. Information for Indian businesses; not legal advice.