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 Kolhapur
Kolhapur’s foundries and the Ichalkaranji textile belt supply engineering buyers and traders across India, mostly through Udyam-registered small units. Casting and machining dues from larger buyers fall under the MSME Act, while textile trade dues are more often cheque-based and handled under Section 138.
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 Kolhapur
| Route | Forum |
|---|---|
| Section 138 (cheque bounce) | Judicial Magistrate First Class courts, Kolhapur, for Section 138 |
| Summary suit / recovery suit | District Court, Kolhapur, and its Commercial Court for recovery suits. |
| MSME Samadhaan | Maharashtra Micro and Small Enterprises Facilitation Councils (regional councils for Mumbai, Pune, Nashik, Nagpur, Aurangabad and Amravati regions) (detail) |
| Arbitration | As per the contract clause |
How FundRaksha works for leather and footwear suppliers in Kolhapur
- 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 Kolhapur or before the Council if needed.
30% on recovery, nothing upfront.