Notice to Inform about the Delay in Payment for the Delivery of Goods - Word & PDF Template Form

NOTICE OF DEMAND FOR PAYMENT OF OUTSTANDING DUES UNDER A CONTRACT FOR SALE OF GOODS

FROM:

________

________

GSTIN/PAN: ________

Attention: ________ (________)

Date: ________

Place: ________

Mode of Service: By Registered Post A.D. / Speed Post / Courier and by Electronic Mail to ________

TO:

________

________

GSTIN/PAN: ________

Attention: ________

RE: NOTICE DEMANDING PAYMENT OF OUTSTANDING DUES PAYABLE UNDER THE CONTRACT FOR SALE OF GOODS DATED ________

Dear Sir/Madam,

Under instructions from and on behalf of our client / as the aggrieved party named above (hereinafter referred to as "We/Us/Our"), we hereby serve upon you, ________ (hereinafter referred to as "You/Your"), the following Notice of Demand:

§1. The Agreement

1. That We and You entered into a ________ dated ________ (hereinafter the "Sale of Goods Agreement"), being a contract for the sale of goods governed by the provisions of the Sale of Goods Act, 1930 and the Indian Contract Act, 1872.
2. That the Sale of Goods Agreement governs the supply of the following goods, on the following material terms:

________

3. That a true copy of the Sale of Goods Agreement together with the relevant Proof of Delivery documents evidencing delivery and acceptance of the said goods is annexed hereto and marked as Annexure A for Your ready reference.

§2. Particulars of the Outstanding Amount

1. That pursuant to the said Agreement, We duly delivered the goods to You and raised tax invoice no. ________ dated ________, a copy whereof is annexed hereto and marked as Annexure B.
2. That the total amount due and payable by You under the said invoice is Rs. ________ (Rupees ________ only).
3. That in terms of ________ of the Sale of Goods Agreement, payment fell due within ________ (________) days from the date of the invoice, with a grace period of ________ (________) days from the due date, both of which periods have long since expired.
4. That despite the same, You have, to date, made only a part payment of Rs. ________ (Rupees ________ only), leaving a balance principal sum of Rs. ________ (Rupees ________ only) wholly outstanding and unpaid.

§3. Breach and Cause of Action

1. That by reason of the aforesaid non-payment, You are in breach of ________ of the Sale of Goods Agreement and have failed to discharge Your obligation as a buyer to pay the price of the goods in accordance with Sections 31 and 55 of the Sale of Goods Act, 1930.
2. That despite repeated reminders and previous communications, You have wilfully neglected and/or failed to clear the outstanding dues.
3. That You are further liable to pay interest on the outstanding amount at the rate of ________% per annum from the due date until realisation, in terms of the Agreement and/or under the Interest Act, 1978, and, where applicable, in terms of the Micro, Small and Medium Enterprises Development Act, 2006.

§4. Compliance with Contractual Notice Requirement

1. That this Notice is issued in compliance with the contractual notice requirement set out under ________ of the Sale of Goods Agreement, and is being served at Your address recorded therein.

§5. Demand

1. We, therefore, hereby call upon and demand that You pay to Us the said outstanding sum of Rs. ________ (Rupees ________ only), together with accrued interest thereon, within ________ (________) days from the date of receipt of this Notice.
2. That payment shall be made by way of ________ to the following account: ________.

§6. Consequences of Non-Compliance

Should the outstanding payment remain unpaid within the aforementioned period, We shall be constrained to pursue all available legal remedies, including but not limited to institution of proceedings for recovery of the outstanding amount along with applicable interest, costs and damages, initiation of proceedings under applicable law including, where eligible, Section 138 of the Negotiable Instruments Act, 1881 and/or an application under the Insolvency and Bankruptcy Code, 2016, as well as termination of the Sale of Goods Agreement, all at Your entire risk as to costs and consequences and without any further notice to You. We trust, however, that such measures will not become necessary and that this matter can be resolved amicably upon receipt of the outstanding payment.

§7. Reservation of Rights

This Notice is issued without prejudice to and in full reservation of all rights and remedies available to Us under the Sale of Goods Agreement and under applicable laws, including the right to invoke the dispute resolution / arbitration mechanism, if any, contained in the Agreement, and the same shall be subject to the exclusive jurisdiction of the courts at ________.

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Your prompt attention to this matter is greatly appreciated.

Yours faithfully,

___________________

For and on behalf of ________

Attention: ________ (________)

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