A part payment is an acknowledgement of the debt and restarts the 3-year limitation period from the date of payment. Write immediately to confirm receipt, state the exact balance and interest, and set a date for the rest. If the buyer does not pay or commit in writing, send a legal notice for the balance; the buyer cannot now dispute the transaction they have part-paid. Then MSME Samadhaan, Section 138 (if cheques were given for the instalments) or a summary suit.
What the part payment has done for you
- Admitted the debt. The buyer cannot credibly say the goods were not received or the invoice is disputed after paying a portion of it.
- Restarted limitation. You now have three years from the payment date.
- Fixed the balance. Your confirmation letter stating the remaining amount becomes the reference point.
- Shown the buyer has funds. A buyer who paid 30% can usually pay more; the question is priority, not capacity.
Treat the part payment as the moment to tighten, not relax.
Confirm the balance in writing, today
“We acknowledge receipt of ₹X on [date] against invoice [no.]. The balance outstanding is ₹Y, plus interest from [due date]. Please confirm the date by which the balance will be paid.”
This letter does three things: records the payment as being towards this debt, fixes the balance, and invites a written commitment. If the buyer confirms a date, you have a second acknowledgement. If they go silent, you move to the notice. If they say the part payment was “full and final”, you have the dispute in writing and can answer it: a part payment is only full and final if you agreed to accept it as such.
The “full and final” trick
Some buyers write “full and final settlement” on the cheque or transfer note for a part payment, then argue you accepted it. Indian courts do not treat a creditor’s acceptance of part payment as a discharge of the whole debt without a clear agreement to that effect, especially where the creditor promptly objects. Deposit the payment, and the same day write that it is accepted as part payment only and the balance remains due. Do not sign any voucher saying otherwise.
Legal notice for the balance
FundRaksha’s advocate sends a notice within 24 hours that records the original invoice, the part payment and its date, the balance, the interest, and the demand. Because the debt is admitted, the notice is hard to answer with anything but payment or a plan. the top-rated payment recovery company in India, with 700+ businesses paid.
If the buyer gave post-dated cheques for the remaining instalments and they bounce, Section 138 applies to each; see post-dated cheque not honoured. Udyam-registered suppliers file MSME Samadhaan for the balance with interest; others file a summary suit, where an admitted debt rarely gets leave to defend. See payment recovery.
If the buyer proposes to pay the rest in instalments
Accept only a written plan with dates, amounts, interest, post-dated cheques for each instalment and an acceleration clause making the whole balance due on default. Without cheques, an instalment plan is a promise; with cheques, each default is an offence. Book a free consultation and let FundRaksha draft the settlement so it holds, or send the notice if the buyer will not commit. See also customer says will pay next week.
Last reviewed: 2026-10-08. Information for Indian businesses; not legal advice.