Most engineering suppliers are Udyam-registered, so the MSME Act’s 45-day limit and statutory interest apply to OEM and EPC buyers, including PSUs. A legal notice followed by MSME Samadhaan is the standard route; large contracts often add arbitration.
Engineering, fabrication and machine tools in Kolkata
Kolkata’s trade in Burrabazar, Posta and Howrah still runs on relationships and post-dated cheques, so Section 138 and old-fashioned negotiation both matter. Jute mills, foundries and engineering units supply across eastern India and Bangladesh, and distributors here often carry dues for FMCG brands with slow reconciliation.
Purchase orders with 45 to 90 day terms, frequent “hold” on payments pending inspection, and debit notes for rejections.
Proof to collect
Typically purchase orders, delivery challans and GRNs, inspection and test certificates, invoices and the buyer’s rejection or debit notes.
- Avoid: deliveries without GRN acknowledgement
- Avoid: rejections not contested in writing
- Avoid: tooling and development costs not covered by a PO
- Avoid: accepting payment terms longer than 45 days in writing (the Act caps them)
Forums in Kolkata
| Route | Forum |
|---|---|
| Section 138 (cheque bounce) | Metropolitan Magistrate courts at Bankshall Court, Calcutta, and Alipore for Section 138 |
| Summary suit / recovery suit | City Civil Court and the Calcutta High Court Commercial Division for recovery suits. |
| MSME Samadhaan | West Bengal Micro and Small Enterprises Facilitation Council (detail) |
| Arbitration | As per the contract clause |
How FundRaksha works for engineering, fabrication and machine tools suppliers in Kolkata
- Free assessment of the documents your trade produces.
- Notice within 24 hours, itemising invoices, disputed and undisputed amounts and interest.
- Negotiation and documented settlement.
- Filing in Kolkata or before the Council if needed.
30% on recovery, nothing upfront.