A legal notice with the full statement of account settles many textile dues because the buyer wants to keep sourcing. Bounced cheques go under Section 138. Udyam-registered manufacturers can file MSME Samadhaan and claim interest at three times the bank rate; trading dues go by notice, settlement and a summary suit.
How dues arise in textiles and garments
60 to 120 day credit is normal; post-dated cheques and running accounts (khata) are common, and buyers raise quality or shortage disputes when they want to delay.
Proof that wins
The claim is built from sale bills with HSN, delivery challans or lorry receipts, e-way bills, the buyer’s acceptance or no complaint within the agreed period, ledger statements and WhatsApp confirmations of orders. 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
- Verbal orders with no written confirmation
- Goods accepted without a signed delivery record
- Quality complaints raised only after the due date
- Running accounts with no agreed credit period, which the MSME Act treats as 15 days
Where textiles and garments dues concentrate
- Textiles and garments in Surat
- Textiles and garments in Ahmedabad
- Textiles and garments in Tiruppur
- Textiles and garments in Ludhiana
- Textiles and garments in Panipat
- Textiles and garments in Erode
- Textiles and garments in Mumbai
- Textiles and garments in Delhi
- Textiles and garments in Kanpur
- Textiles and garments in Varanasi
- Textiles and garments in Bengaluru
- Textiles and garments in Kolkata
- Textiles and garments in Jaipur
- Textiles and garments in Lucknow
- Textiles and garments in Indore
- Textiles and garments in Coimbatore
- Textiles and garments in Madurai
- Textiles and garments in Faridabad
- Textiles and garments in Noida
- Textiles and garments in Amritsar
- Textiles and garments in Jodhpur
- Textiles and garments in Kolhapur
- Textiles and garments in Mysuru
- Textiles and garments in Salem
- Textiles and garments in Guntur
- Textiles and garments in Warangal
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.