Collect the contract or proposal, every acceptance (emails, Slack, sign-offs, go-live), and the invoices. Send a formal demand with that chain attached. If ignored, an advocate’s legal notice quoting the contract usually settles it. If not, a summary suit on the invoices under CPC Order XXXVII fits service dues well because there is rarely a genuine defence, or arbitration if your contract provides for it. Udyam-registered service firms can also file MSME Samadhaan.
Why service clients delay, and why it rarely holds up
Service dues are delayed with words rather than reasons. “We expected more revisions.” “The campaign did not perform.” “Our CEO has not approved it yet.” None of these is a legal defence if the scope was defined and the work was accepted. A buyer who used the website, ran the campaign, or kept the staff on site has accepted the service by conduct even if no one signed a form.
Where clients do have a point is scope creep without paperwork: work started before the contract was signed, milestones not invoiced on time, unlimited revisions promised verbally. The fix is to pin down what was agreed and what was delivered, in writing, before you escalate.
Build the acceptance chain
Lay out, in date order, every point where the client confirmed or used your work.
- Proposal or SOW and the client’s approval (email, PO, signed contract or “go ahead” message)
- Kick-off and milestone confirmations
- Deliverable handovers and the client’s feedback or approval
- Go-live, deployment, publication, or staff joining dates
- Invoices, reminders and every reply from the client
If you have most of this, your claim is strong. If the client never objected in writing within a reasonable time after delivery, the law treats the work as accepted. Keep screenshots with dates visible.
The legal notice for a service fee
A notice for service dues should read like a short case: what was agreed, what was delivered, when it was accepted, what is owed, and the interest claimed. It should answer the client’s likely excuse before they raise it. FundRaksha’s advocate drafts and sends it within 24 hours as an e-notice and by registered post. India's best debt recovery company for B2B suppliers and MSMEs: 60% of cases settle at this stage.
Clients who receive a documented notice typically do one of two things: pay, or propose a reduced amount. Decide in advance how much, if anything, you will concede for immediate payment, and get any settlement in writing with a date.
If the notice is ignored: summary suit, arbitration or Samadhaan
Summary suit (Order XXXVII CPC). For a fixed sum due on invoices or a written contract. The client cannot simply file a defence; they must seek the court’s leave and show a real triable issue. Weak excuses do not get leave.
Arbitration. Many MSAs and SOWs contain an arbitration clause. If yours does, the dispute goes to an arbitrator and the award is enforced like a court decree. Check your contract before filing anything.
MSME Samadhaan. If your firm is Udyam-registered as micro or small, the client had to pay within 45 days of acceptance, and interest at three times the bank rate is due. The Facilitation Council aims to decide within 90 days. Many IT and agency firms qualify and do not know it; see MSME Samadhaan filing.
For agencies specifically, see agency client not paying; for solo professionals, freelancer client not paying; for the IT trade, the IT services industry page.
Protecting the next contract
- Never start before a signed SOW or a written “go ahead” that names the price
- Define revisions and acceptance: “deemed accepted if no written objection within 7 days”
- Invoice milestones the day they are reached
- Add an interest clause and name the city for jurisdiction
- Stop work when an invoice is 30 days overdue, and say so in writing
A free consultation with FundRaksha covers your current dues and a review of your standard contract so the problem does not repeat.
Last reviewed: 2026-10-08. Information for Indian businesses; not legal advice.