Legal Question in Business Law in India

I sold a shipment of goods to ABC Company and received a bill of exchange for it. But now I find that the

bill has been dishonoured. Can I sue ABC Company? What would my rights be in a court of law in this

scenario?


Asked on 7/24/09, 11:57 am

1 Answer from Attorneys
Vishwa Arya Arya & Co.

Yes, you may sue the company for recovery of sale price. In fact, you may file a Summary Suit under Order XXXVII Code of Civil Procedure on the basis of invoices (to be considered as a written contract) and also on the the basis of dishonoured Bill Receivable. In summary suit, the company will first have to seek the leave to defend the suit. In the alternative you may file an Ordinary Civil Suit also. Here leave to defend is automatic as a matter of right.

Regards

Vishwa Bhushan Arya

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Answered on 7/24/09, 12:09 pm


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