Payment & Contract Support, Secure Your Payments and Enforce Your Contracts
Legal support that gets you paid — we structure watertight payment terms, milestones and security into your contracts, protect you under the MSME 45-day rule, and escalate non-payment from a reminder to a legal demand notice, cheque-bounce action or recovery suit. 100% online, with a clear scope and quote confirmed upfront.
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What Is Payment & Contract Support?
A quick, plain-language explanation before the details.
Payment & contract support is legal help that secures the payments you are owed — by building strong payment terms and security into your contracts, and by enforcing them (demand notice, cheque-bounce case or recovery) when a client does not pay.
It draws on the Indian Contract Act, 1872 (enforceable agreements and remedies for breach), the MSMED Act, 2006 (Sections 15–16: the 45-day payment rule and compound interest, with dispute resolution through MSME Samadhaan under Section 18), and the Negotiable Instruments Act, 1881 (Section 138, for dishonour of a cheque issued towards a debt).
Contractual claims are enforced through civil courts (including the Commercial Courts for higher-value claims) and cheque-bounce complaints before Magistrate courts; MSME delayed-payment claims are heard by the Micro and Small Enterprise Facilitation Council via the MSME Samadhaan portal.
This is an advisory and case-driven service — scope, remedy and timeline depend on your contract, the amount owed and the counterparty. Cheque-bounce action has strict statutory time limits, so early advice matters.
Quick Facts
Is This Service Right for You?
Ideal for
- MSMEs and suppliers facing delayed or withheld payments
- Service providers, agencies and freelancers with unpaid invoices
- Manufacturers and traders selling on credit terms
- Contractors and vendors working against milestones or POs
- Businesses negotiating high-value or long-tenure contracts
- Anyone holding a bounced cheque or a broken payment promise
You may need this if
- A client is delaying, disputing or refusing to pay your invoice
- You want payment terms and security built into a contract before signing
- A cheque you received has bounced or been dishonoured
- You are a registered MSME and a buyer has crossed the 45-day limit
- A counterparty has breached the agreed payment or delivery terms
- You need a legal demand notice sent before starting recovery action
Not sure if you need this?
Talk to an Expert →Why Payment & Contract Support Matters
Weak payment terms and slow escalation are the two biggest reasons businesses lose money they are legally owed. Here is why structured support changes the outcome.
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01
Secure the Payment Upfront
Advance, post-dated cheques, a bank guarantee or an escrow arrangement built into the contract means you are not chasing money after the work is done.
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02
Make Terms Enforceable
Clear payment schedules, milestones, interest-on-delay and default clauses turn a loose understanding into an agreement a court will enforce under the Contract Act.
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03
Claim MSME Interest
A registered micro or small enterprise can claim compound interest at three times the RBI bank rate on payments delayed beyond 45 days under Section 16 of the MSMED Act.
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04
Escalate the Right Way
A properly drafted legal demand notice often gets you paid without litigation — and lays the foundation if a suit or complaint becomes necessary.
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05
Resolve Without Court
MSME Samadhaan conciliation and negotiated settlements can recover dues faster and cheaper than a full civil suit, preserving the business relationship where possible.
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06
Protect Your Paper Trail
Correct invoicing, purchase-order and acknowledgement documentation is what makes a claim provable — we make sure your records support recovery.
Simple, Transparent Pricing
Custom quote for your case
Fees depend on your business type and scope. Get a clear, itemised quote upfront — no hidden professional charges, government fee billed at actuals.
Who Can Apply?
Eligibility checklist
- A written contract, purchase order, or email/WhatsApp trail evidencing the deal
- Invoices raised, with proof of delivery or acceptance of goods/services
- The amount outstanding and how long it has been overdue
- Any cheque, PDC, bank guarantee or security you hold
- Udyam registration if you wish to use the MSME 45-day protection
- Details and correspondence history with the defaulting counterparty
Everything You Need. One Professional Team.
Consultation
Review your contract, invoices and correspondence to assess the strongest route to payment.
Payment-Term Structuring
Draft watertight payment schedules, milestones, advances and interest-on-delay clauses.
Security Mechanisms
Build in post-dated cheques, bank guarantee or escrow so the payment is secured, not just promised.
Invoicing & PO Documentation
Set up compliant invoicing and purchase-order records that make your claim provable.
MSME Delayed-Payment Protection
Invoke the 45-day rule, compute Section 16 interest and file through MSME Samadhaan.
Legal Demand Notice
Draft and send a formal demand notice as the first enforcement step.
Cheque-Bounce & Recovery Action
Pursue Section 138 complaints and civil recovery suits where a demand goes unanswered.
Dispute Resolution
Negotiate settlements or represent your interest through conciliation and litigation.
What You’ll Receive
What Documents Support a Payment or Contract Claim?
Recovery is only as strong as the paper trail behind it. Group your documents by the underlying agreement, proof of the amount owed, and any security you hold — everything is collected securely online.
Contract & Order
The underlying agreement- Signed contract, agreement or engagement letter
- Purchase order / work order
- Email or WhatsApp trail confirming the deal
- Quotation or accepted proposal
- Any amendment or variation to the original terms
Invoice & Proof
Evidence of the amount owed- Invoices raised, with due dates
- Proof of delivery / acceptance of goods or services
- Delivery challans or e-way bills
- Statement of account showing the outstanding balance
- Part-payments received and dates
Security & Party
Security held & counterparty details- Cheque / post-dated cheque and bounce memo (if any)
- Bank guarantee or escrow agreement held
- Udyam registration certificate (for MSME protection)
- Counterparty name, address and authorised contact
- Prior reminders or correspondence about the dues
Cheque-bounce is time-bound
A Section 138 demand notice must be sent within 30 days of the bank return memo, and the complaint filed within the statutory window after that. Act quickly on a bounced cheque.
MSME 45-day clock
The 45-day payment period under Section 15 runs from the day the buyer accepts the goods or services. A registered MSME (Udyam) can then claim interest and file under Samadhaan.
Written terms win
A signed contract or purchase order with clear payment terms makes recovery far easier. Even an email or WhatsApp trail can evidence the agreement where there is no formal contract.
Prove delivery & acceptance
Invoices alone are not enough — proof that the goods or services were delivered and accepted is what defeats a "we never received it" defence.
Don’t have all the documents?
We’ll identify what your case needs →How Payment & Contract Support Works (Step by Step)
From securing terms upfront to enforcing them when a client does not pay — a structured escalation, handled online.
Consultation & Case Review
We review your contract, invoices, cheque or security and correspondence to identify the strongest route to payment.
Strategy & Scope
We recommend the right step — strengthen terms, send a demand notice, invoke MSME Samadhaan, or file cheque-bounce / recovery action — with a clear quote.
Documentation & Drafting
We draft the payment terms, demand notice, complaint or Samadhaan application and prepare the supporting record.
Dispatch / Filing
The notice is served on the counterparty, or the complaint / application is filed with the appropriate forum.
Follow-Up & Negotiation
We track the response, negotiate a settlement where possible and advise on the next escalation.
Resolution
We pursue the matter through conciliation, court or settlement until the dues are recovered or the claim is resolved.
What to Expect on Timelines
| Stage | Expected Time |
|---|---|
| Consultation, case review & strategy | Day 1–3 |
| Drafting demand notice / payment terms / application | Day 3–7 |
| Dispatch, response window & negotiation | From dispatch — varies |
Drafting and dispatch are quick; resolution depends on the counterparty and the route. A demand notice typically allows a 15-day response window; a Section 138 cheque-bounce notice must be sent within 30 days of the bank memo; and MSME Samadhaan / court timelines are set by the forum. We advise the realistic timeline for your specific case.
Key Dates — At a Glance
| Frequency | What Is Due |
|---|---|
| Every Contract | Include clear payment terms, milestones & due dates · Add interest-on-delay and default clauses · Take advance / PDC / bank guarantee where the value warrants |
| Every Invoice | Raise invoices promptly with correct due dates · Keep proof of delivery and acceptance · Reconcile the account and part-payments received |
| On Delay | Send a timely reminder, then a legal demand notice · Invoke MSME Samadhaan if you are a registered MSME · Act within 30 days on any bounced cheque |
| Ongoing | Keep Udyam registration active for MSME protection · Maintain a clean, retrievable document trail · Review recurring-client contracts periodically |
Dates are indicative and may change with government notifications. Our team tracks every deadline so you never miss a filing.
Doing It Yourself vs TaxClue
Doing It Yourself
- Judge which remedy fits — notice, Samadhaan, s.138 or civil suit
- Draft enforceable payment terms and security clauses yourself
- Meet the strict 30-day cheque-bounce notice deadline
- Compute MSME interest correctly under Section 16
- Word a demand notice that stands up if litigation follows
- Assemble delivery and acceptance proof to back the claim
- Risk a weak notice or missed deadline that stalls recovery
With TaxClue
- Expert picks the strongest recovery route for your case
- Lawyer-drafted, enforceable payment terms and security
- Cheque-bounce and MSME deadlines tracked for you
- Section 16 MSME interest computed accurately
- Demand notice drafted to hold up in court if needed
- Your paper trail organised to make the claim provable
- One team from notice to settlement or recovery
Skip the guesswork.
Let an expert handle it →Common Mistakes That Delay Your Application
TaxClue reviews your documents before filing to reduce avoidable errors.
Keeping Payments Secure Going Forward
Every Contract
- Include clear payment terms, milestones & due dates
- Add interest-on-delay and default clauses
- Take advance / PDC / bank guarantee where the value warrants
Every Invoice
- Raise invoices promptly with correct due dates
- Keep proof of delivery and acceptance
- Reconcile the account and part-payments received
On Delay
- Send a timely reminder, then a legal demand notice
- Invoke MSME Samadhaan if you are a registered MSME
- Act within 30 days on any bounced cheque
Ongoing
- Keep Udyam registration active for MSME protection
- Maintain a clean, retrievable document trail
- Review recurring-client contracts periodically
Penalties & Consequences
What is at stake if you do not comply
- Selling on credit with no written payment terms weakens recovery
- Missing the 30-day window to send a cheque-bounce notice forfeits the Section 138 case
- Ignoring the MSME 45-day rule forfeits interest on delayed payment
- No proof of delivery or acceptance leaves the invoice unprovable
- A civil recovery suit filed after the limitation period is barred
Regulatory Updates 2025–26
- 2025: A cheque bounce case under Section 138 of the Negotiable Instruments Act needs a demand notice within 30 days of dishonour and a complaint within the following statutory window.
- 2023: The Mediation Act 2023 provides for pre-litigation mediation and enforcement of mediated settlements.
Why Businesses Choose TaxClue
Legal & Advisory Team
Experienced professionals handle drafting, notices and recovery end-to-end.
Prevent & Enforce
We secure payment upfront and enforce it when a client defaults — both sides covered.
Right Remedy
Demand notice, MSME Samadhaan, cheque-bounce or suit — matched to your case.
100% Online
Share documents and get updates online — no office visits required.
Transparent Fees
A clear scope and quote confirmed upfront — no surprises.
End-to-End Support
From the first notice to settlement or recovery, one team stays with you.
Your Documents Deserve Professional Care
- Contracts and correspondence handled under strict confidentiality
- Access limited to the team working on your matter
- Communication over secure digital channels
- Documents retained only as long as needed for the case
Frequently Asked Questions
What does payment & contract support cover?
A client is not paying my invoice — what should I do first?
What is the MSME 45-day payment rule?
What interest can an MSME claim on a delayed payment?
What is MSME Samadhaan?
A cheque I received has bounced — what are my options?
Do I need a written contract to recover payment?
How do payment terms and security protect me?
Can I recover payment without going to court?
What is the difference between a demand notice and a recovery suit?
Do you help with vendor and supplier contracts too?
Is the first consultation free, and how is the fee decided?
What payment terms should every contract include to avoid disputes?
What is the time limit to file a cheque-bounce case under Section 138?
Can I claim both MSME interest and file a cheque-bounce case for the same dues?
How long do I have to file a civil recovery suit for unpaid dues?
Is a legal demand notice compulsory before starting recovery action?
Official Sources & Legal References
Every legal reference on this page — the MSME 45-day rule, interest, cheque-bounce provision and dispute forums — is drawn from primary law and official government sources. Verify them directly:
- MSME Samadhaan — delayed payment portalOfficial portal to file a delayed-payment application before the Facilitation Council
- MSMED Act, 2006 — full textSections 15–16 (45-day payment & interest) and Section 18 (dispute resolution) · India Code
- Negotiable Instruments Act, 1881 — Section 138Dishonour of a cheque issued towards discharge of a debt or liability
- Ministry of MSME — Udyam & schemesUdyam registration and micro & small enterprise protections
Related Guides
Payment & Contract Support Resources — All Free
Secure Your Payments — Talk to a Legal Expert
From watertight payment terms and MSME protection to demand notices, cheque-bounce action and recovery — expert-managed payment & contract support. Free consultation, clear scope and quote confirmed upfront.