The route that works
Footwear and leather units are mostly micro and small enterprises, so the MSME Act’s 45-day rule applies to brand and wholesaler buyers; a notice citing it and then Samadhaan recovers most domestic dues. Cheque dues go under Section 138.
How dues arise in leather and footwear
90 to 120 day credit to brands and wholesalers, seasonal orders, and returns or markdown claims used to cut payments.
Proof that wins
The claim is built from POs and season orders, delivery challans and e-way bills, invoices, quality acceptance and the brand’s claim correspondence. The buyer’s own replies (“will pay next week”) are admissions; part-payments and signed ledger confirmations restart the three-year limitation period.
Mistakes that weaken a claim
- Season orders accepted on WhatsApp alone
- Markdown and return claims not challenged in writing
- Long credit agreed in writing beyond 45 days
Where leather and footwear dues concentrate
What FundRaksha does
- Free assessment of your invoices and documents.
- Legal notice by a dedicated advocate within 24 hours, built around your trade’s paperwork.
- Negotiation, with disputed items separated from undisputed dues.
- MSME Samadhaan, Section 138, summary suit or arbitration if needed.
30% of the amount recovered; nothing upfront.