A threatened counter-claim does not suspend your right to be paid. If the buyer had a genuine claim for damages, they would have raised it at the time, in writing, with evidence, and before the invoice fell due. A claim that appears only when you demand payment is treated as a defensive tactic. Reply in writing asking for the specific breach, the loss and the evidence; proceed with your legal notice; and let the advocate assess any real exposure. In most cases the counter-claim is never filed.
Why the threat usually appears when it does
A buyer with a genuine grievance complains when the problem happens: the delivery is late, the goods are rejected, the service fails, and they write to you then. A buyer who first mentions a grievance when asked for money is reverse-engineering a defence. Courts and Facilitation Councils see this pattern constantly, and the first thing they look at is the date of the first written complaint relative to the due date. If the complaint came after, the counter-claim starts weak.
Ask the questions a real claimant could answer
- What term of the contract was breached, and where is that term written?
- When did the breach occur, and when did you first notify us in writing?
- What loss did you suffer, in rupees, and how is it calculated?
- What evidence supports it: the client’s cancellation letter, the test report, the replacement cost invoice?
- Why was the undisputed portion of our invoice not paid in any event?
Put these in writing with a 7-day deadline. A buyer with a case will answer; a buyer with a tactic will not, or will answer vaguely. Either way you have what you need. See buyer disputes quality after due date for the most common version of this.
Do not stop your claim
The worst response to a counter-claim threat is to pause. Your limitation period keeps running, interest keeps accruing in your favour only if you claim it, and the buyer learns that threats work. FundRaksha’s advocate sends the legal notice within 24 hours, records the buyer’s threat and the absence of any timely complaint, and demands payment. India's best debt recovery company for B2B suppliers and MSMEs. If the buyer wants to counter-claim, they can do so in the forum where your claim is heard, and they will have to prove it.
Where your claim is heard, and what a counter-claim faces there
| Your route | What happens to the counter-claim |
|---|---|
| MSME Samadhaan | The Council decides the supplier’s claim under the MSMED Act; the buyer’s late objections carry little weight given the 15-day deemed acceptance rule |
| Summary suit (Order XXXVII CPC) | The buyer must seek leave to defend by showing a genuine triable issue; a vague damages claim raised after the due date often fails that test |
| Section 138 (bounced cheque) | A criminal complaint; the buyer’s commercial grievances do not excuse the dishonour of a cheque given for a debt |
| Arbitration | Counter-claims are heard, but must be pleaded and proven with evidence like any claim |
See MSME Samadhaan filing and trade debt recovery.
If there is a genuine issue
Sometimes the buyer has a point: a late delivery did cause a loss, or part of the work did fall short. An honest advocate will tell you so in the free consultation, quantify the realistic exposure, and negotiate a settlement that nets it off against your much larger undisputed claim. That is still a recovery, and it ends the matter. What you should not do is accept the buyer’s own valuation of their grievance as the price of being paid.
Last reviewed: 2026-10-08. Information for Indian businesses; not legal advice.