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.
Textiles and garments in Mumbai
Mumbai is India’s largest B2B market and its dues are the most varied: garment exporters in Dharavi and Andheri, chemical traders in Masjid Bunder, agencies and consultants billing corporates in BKC and Lower Parel. Cheque-based payments are still common in trading, so Section 138 is a frequent route, and arbitration clauses in corporate contracts often decide where a dispute is heard.
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 to collect
Typically 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.
- Avoid: verbal orders with no written confirmation
- Avoid: goods accepted without a signed delivery record
- Avoid: quality complaints raised only after the due date
- Avoid: running accounts with no agreed credit period, which the MSME Act treats as 15 days
Forums in Mumbai
| Route | Forum |
|---|---|
| Section 138 (cheque bounce) | Metropolitan Magistrate courts (Esplanade, Mazgaon, Andheri, Bandra, Kurla and others) for Section 138 complaints |
| Summary suit / recovery suit | City Civil Court and the Bombay High Court Commercial Division for high-value 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 textiles and garments suppliers in Mumbai
- 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 Mumbai or before the Council if needed.
30% on recovery, nothing upfront.