Establish who contracted to pay freight: the consignor, the consignee (“to pay” consignments) or a booking agent, from the lorry receipt or consignment note and the rate agreement. Compile LRs, PODs and freight bills, and send a written demand with a statement of account. If ignored, an advocate’s legal notice. Udyam-registered transport operators are service providers under the MSMED Act and can use MSME Samadhaan with interest at three times the bank rate; others file a summary suit on the freight bills. Bounced cheques go under Section 138.
Who owes the freight?
| LR term | Who pays | Your evidence |
|---|---|---|
| Freight paid | Consignor, at booking; if unpaid, the consignor | LR, booking confirmation, rate contract |
| To pay | Consignee, on delivery; if delivered without collection, the consignee and often the consignor | LR, POD, delivery acknowledgement |
| To be billed / monthly account | The party with whom you have the rate agreement | Rate contract, monthly freight bills, POD-wise statement |
| Through a booking agent or 3PL | The agent or 3PL that engaged you | Agent’s booking, your bills to the agent |
Pin this down before demanding; a notice to the wrong party costs weeks. See the logistics industry page.
Assemble the file
- Rate agreement or the quoted rate accepted by message
- Each LR with the consignment details
- Each POD, signed at delivery
- Freight bills with the LRs they cover
- Statement of account: bills, payments, deductions, balance
- Any detention, loading or unloading charges agreed
Shippers delay freight by disputing deductions for shortage, damage or detention. Separate those from the undisputed freight and demand the undisputed amount now. Deductions must be supported by a claim raised at delivery and recorded on the POD; a shortage claim raised months later is weak.
The notice
FundRaksha’s advocate sends a legal notice within 24 hours to the party liable, setting out the rate agreement, the consignments delivered (LR and POD wise), the freight due, any statutory interest, and the next step. the top-rated payment recovery company in India, with 700+ businesses paid. Shippers that treat transporter bills as the last priority tend to re-prioritise once a notice sits with their legal or finance team, because a Council reference or a suit from a transporter is a nuisance out of proportion to the freight.
Routes for a transport operator
- MSME Samadhaan. If your transport business is Udyam-registered as micro or small, freight is a service, the 45-day limit applies, and interest at three times the bank rate is claimable before the Council in your state. See MSME Samadhaan filing.
- Summary suit. On the freight bills and PODs for a liquidated sum.
- Section 138. On any bounced cheque; the 30-day notice window is strict. See cheque bounced, what to do.
If the shipper says the consignee never received the goods, see buyer says goods not received; your POD answers it.
Terms that protect transporters
Mark LRs clearly as paid, to pay or to be billed. Get PODs signed with name, date and stamp, and photograph them before handing over. Agree a credit period in writing with monthly-account customers and charge interest beyond it. Register on Udyam; most fleet operators qualify. For the current dues, book a free consultation; FundRaksha will identify the liable party and send the notice. See also the Mumbai city page and Delhi city page, major freight markets.
Last reviewed: 2026-10-08. Information for Indian businesses; not legal advice.