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Getting paid for diesel on credit: the steps from first reminder to last resort

Short answer

Getting paid for diesel on credit is a ladder, climbed one rung at a time. Agree the days to pay and send a numbered bill. Remind on the due day. At 15 to 30 days late, call and stop new credit. Around 60 days late, send a written demand. Mediation, a suit or a cheque case come last. Prevention is cheaper than recovery: a limit, a record the transporter can see, and regular bills. No step guarantees payment.

MDG Services makes Khata Kavach, so this page comes from the maker of one of the apps it may mention. It is general information, not legal, tax or financial advice. Facts about other apps are taken from their own websites and app listings on the date shown and can change, so check them there before you decide.

Facts checked on 27 October 2026. Published by MDG Services on 22 October 2026.

The ladder

This page is for a petrol pump owner whose regular customers, transporters and fleet owners, take diesel on credit.

RungWhenWhat you doPage
1. Before it is dueAt the first credit fillAgree the credit limit and the days to pay. Send a numbered bill.Credit terms, numbered bills
2. On the due dayThe day it falls dueOne polite message with the amount and how to pay.Reminder messages
3. 15 to 30 days lateThe reminder did not workCall. Stop new credit until it is cleared.When to stop credit
4. About 60 days lateA call and a promise both failedSend a written demand.Steps for unpaid dues
5. Last stepsThe demand was ignoredMediation before a commercial suit of Rs 3 lakh or more Commercial Courts Act 2015, s.12A. A summary suit where a bill or contract supports a fixed sum CPC, Order XXXVII; whether a khata alone counts is not settled. For a bounced cheque, written demand within 30 days of the bank's return NI Act 1881, s.138.Cheque bounce

The legal rungs have a clock. The usual time limit to sue is 3 years, from delivery or from the end of the agreed credit period Limitation Act 1963, Art. 14 Limitation Act 1963, Art. 15. With many deliveries on one account, courts differ on when the clock starts. Start early: see the time limit.

Prevention comes first

Three habits keep the upper rungs for rare cases.

  • A limit for each transporter. It sets how much risk you take on one account. See how to set a limit.
  • A record the transporter sees. One list of fills that both of you can read.
  • A bill on a fixed day. Every month, or every 15 days, whatever you agreed.

Agree late-payment terms, and any interest, in writing before the first credit fill. Where interest is not agreed, a court decides Interest Act 1978, s.3.

What Khata Kavach does at each rung

  • Rungs 1 and 2. By default the transporter sends a request before the fill. The nozzle shows a green, amber or red light. A numbered bill goes from your own WhatsApp, with a UPI QR if you have added your UPI ID.
  • Rungs 2 and 3. Transporters near or past the limit show on Today, each with an "Ask for payment on WhatsApp" button. It opens your WhatsApp with a message ready, and you press send. Once a bill is past the due day you set, it has a "Send a reminder" button. Each transporter's page shows how old the balance is.
  • Rung 3. The owner can freeze an account. As soon as the nozzle phone is online, that transporter shows red.
  • Every rung. "Record a payment" notes money when it arrives. That much credit opens again.

Khata Kavach keeps the account. It sends no message itself, never lends, never holds money, and does not collect dues.

General information, not legal advice. For your own case, speak to an advocate or a chartered accountant.

In this section

Udhar vasuli ke upay: seven steps for a petrol pump to ask for its udhar and keep the transporterUdhar vasuli ke upay for a petrol pump with regular transporters who take diesel on credit: seven steps from checking your record to legal steps, and what never to do.
Payment reminder messages for a pump's credit customers: 7 texts to copy, in English and HinglishSeven polite payment reminder messages from a petrol pump to a transporter on credit, from before the due date to a last request before credit stops, with Hinglish lines.
Late payment interest calculator for a petrol pump: interest on an overdue paymentWork out interest on a transporter's late payment from the amount, the days late and your own yearly rate, simple or monthly compounding, with the working shown.
Debtor days calculator: how long your transporters really take to payWork out a pump's debtor days from the udhar outstanding and the diesel given on credit, see what the number means, and compare it with your credit days.
Payment reminder maker: a ready WhatsApp message for a transporter on creditMake a payment reminder message in Hindi, English or Hinglish, polite, firm or final, then copy it or open it in your own WhatsApp. We store and send nothing.
Customer statement format for a petrol pump: Excel sheet and printable PDFDownload a statement of account format for a transporter on credit: an Excel sheet that works out the running balance and a printable A4 page, in English and Hindi.
Outstanding payment letter format: 3 letters to copy for a pump's credit customerThree outstanding payment letters to copy: a polite statement and request, a firm reminder with a date, and a final letter stopping credit. Fill in the blanks.
Outstanding vs overdue: what the two words mean for your udharOutstanding is everything a transporter still owes your pump. Overdue is the part past its credit days. One worked example, and why overdue is the number to watch.
Bad debt in udhar: when to write it off, and what to try firstWhen a pump's udhar is unlikely to come back: the signs, the steps to try before giving up, how to write it off in your books, and how to stop the next one.
Customer keeps saying kal dunga: what a pump should do, step by stepA transporter who keeps promising kal dunga: fix a date in writing, take part payments, stop new credit after the second missed date, then send a firm letter.
Interest on late payment: can you charge it on udhar?Can a petrol pump charge interest on late udhar? Firmest ground: the transporter agreed in writing before the first credit fill. What to write, and if nothing was agreed.

Questions people ask

01How do I recover money from a customer who is not paying?

A pump should start from where it is: ask the transporter politely for a date, stop new credit, then send a written demand. Legal steps come last. The calm steps are in udhar vasuli ke upay.

02What is the first step when a payment does not come?

Keep it calm and in writing. Ask for a date and note it. Do not threaten, shame or post the transporter's name anywhere: public shaming or threats can backfire. If in doubt, ask an advocate.

03Outstanding payments: where do I start? (bakaya paisa kaise nikale)

List what each transporter owes, with each fill's date. Start with the oldest money, not the biggest total. Splitting a balance by age is explained in how old your udhar is.

04Does Khata Kavach collect the money for me?

No. The transporter pays you directly, by cash, UPI, bank or cheque, and you record it with "Record a payment". Khata Kavach never lends, never holds money and does not collect dues.

Related pages

Giving diesel on credit (udhar) to regular customers: a plain guide for petrol pump ownersShould a petrol pump give udhar to regular transporters? The five decisions every pump owner makes, and where to read about each one.

About Khata Kavach (advertisement)

Khata Kavach is a shared credit book for petrol pumps, from MDG Services. The transporter asks before each truck fills, your nozzle man sees the limit before he fills, and both of you see every fill, payment and bill. It never lends or holds money.

Set up my pump in the appCall 1800‑891‑3496

About this page. This page is general information published by MDG Services, a brand of VRUOOM PRIVATE LIMITED (CIN U29194HR2021PTC098450), the company that makes Khata Kavach. It is free to read and needs no sign-up.

We make one of the apps. Where a page compares Khata Kavach with another app or another way of keeping credit, remember that we make Khata Kavach. We compare like with like, use only facts the other company publishes, and say plainly where another app does more.

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Facts about other apps. Facts about other apps come from their own websites, help pages and app store listings, on the date shown as "facts checked on". Apps change their features and prices often. Check the app's own website before you decide, and tell us if anything here is out of date: we will correct it.

Not legal, tax or financial advice. Pages about getting paid, notices, interest, courts or tax explain the general position in India on the date shown. Laws and rules change, and every case is different. For your own case, speak to an advocate or a chartered accountant.

Examples are made up. The pumps, transporters, vehicles and amounts in examples are made up, and so is the data on the app screens shown. No example describes a real customer or a real result.

What Khata Kavach is. Khata Kavach records credit fills, bills and payments between a petrol pump and its customers. It never lends money and never holds anyone's money: it is not a bank, a lender or a payment service. A Khata Kavach bill is not a GST tax invoice.

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