Facts checked on 27 October 2026. Published by MDG Services on 26 October 2026.
Signs that udhar may not come back
This page is for a petrol pump that gives diesel on credit to regular customers such as transporters, not for money lent to a friend.
General practice, not a legal rule:
- The transporter stops answering calls and messages.
- His firm has closed or moved, or his trucks no longer come to the pump.
- Promises are missed again and again, and part payments have stopped.
- A cheque bounced and nothing followed.
- The balance has sat untouched for months, well past 60 days.
Try these first, in order
| Step | What to do |
|---|---|
| 1. Check your record | Make a statement of every fill, bill and payment. Fix any mistake first. See proof |
| 2. Remind, calmly and in writing | Reminder messages with dates |
| 3. Stop new credit | The balance must stop growing: when to stop credit |
| 4. Offer a settlement | Write the amount, the date and what the transporter gets in return, for example the account closed once paid. For a large sum, ask an advocate to check the wording |
| 5. Check the time limit | The usual 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. See the time limit, the legal steps and, after a bounced cheque, cheque bounce |
If the last day to go to court is near, an advocate should see your papers before you write anything off.
Writing it off in your books
- It is your own bookkeeping decision: you mark the amount as a loss, so your books stop counting it as money to come.
- Do it after the steps above, with a note of what you tried and when.
- It is not a message to the transporter. If you decide to forgive any part, tell him in writing.
- If money comes in later, record it as received.
- How a write-off is treated for tax or GST: ask your chartered accountant.
Stop the next one
A limit for each transporter, a short credit period and a stop rule decided before the first credit fill make the next one less likely: how to set a limit.
Khata Kavach checks the limit at the nozzle before fuel goes in, shows how old each balance is and keeps every fill, bill and payment dated on both phones. It does not lend, hold money or collect dues.
General information, not legal advice. For your own case, speak to an advocate or a chartered accountant.
Questions people ask
01Bad debt meaning in Hindi: what is bad debt?
Money a transporter owes your pump that you no longer expect to get back. In Hindi it is doobat karz, or udhar dub gaya. Once you write it off, your books show it as a loss.
02Udhar dub gaya kya kare?
Do not write it off yet. Send a statement and a firm reminder, stop new credit, offer a settlement in writing and check the time limit. For a large sum, see an advocate before the last day passes.
03When should I write off a bad debt?
This guide sets no day. It is your decision, after the steps on this page have failed, with a note of what you tried and when. For tax or GST treatment, ask your chartered accountant.
04Can I still claim the money after writing it off?
A write-off is an entry in your own books. Whether you can still claim depends on the time limit and your papers, so ask an advocate.
Related pages
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.