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.
Leather and footwear in Erode
Erode’s power-loom and handloom cloth, turmeric and agri-commodity trade runs on long credit and trust, with buyers across Tamil Nadu and Kerala. Written proof of delivery and acceptance is what makes these dues recoverable; a notice and a summary suit on the invoices is the usual path for traders.
90 to 120 day credit to brands and wholesalers, seasonal orders, and returns or markdown claims used to cut payments.
Proof to collect
Typically POs and season orders, delivery challans and e-way bills, invoices, quality acceptance and the brand’s claim correspondence.
- Avoid: season orders accepted on WhatsApp alone
- Avoid: markdown and return claims not challenged in writing
- Avoid: long credit agreed in writing beyond 45 days
Forums in Erode
| Route | Forum |
|---|---|
| Section 138 (cheque bounce) | Judicial Magistrate courts, Erode, for Section 138 |
| Summary suit / recovery suit | District Court, Erode, and its Commercial Court for recovery suits. |
| MSME Samadhaan | Tamil Nadu Micro and Small Enterprises Facilitation Council (detail) |
| Arbitration | As per the contract clause |
How FundRaksha works for leather and footwear suppliers in Erode
- 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 Erode or before the Council if needed.
30% on recovery, nothing upfront.