Facts checked on 27 October 2026. Published by MDG Services on 4 November 2026.
The steps, in order
This page is for a petrol pump that gave diesel on credit to regular customers such as transporters, not for money lent to a friend.
| Step | When | What it needs |
|---|---|---|
| 1. Check your own record | Before anything else | Bills, signed slips, payment entries and the balance. See what counts as evidence |
| 2. Written demand (legal notice) | Reminders have failed | The amount, the bills, a date to pay, and a way to show it was sent. Usual practice; a cheque-bounce complaint needs one NI Act 1881, s.138 |
| 3. Mediation | A commercial dispute of Rs 3 lakh or more, before filing | Mediation must be tried first for a commercial dispute of Rs 3 lakh or more Commercial Courts Act 2015, s.12A. Ask an advocate whether your dispute is covered |
| 4. Summary suit | A written contract or bill supports a fixed sum | A faster route CPC, Order XXXVII |
| 5. Ordinary suit | A summary suit does not fit your case | An advocate drafts it; mediation may still come first (step 3) |
Whether your dispute is a "commercial dispute" is a question for an advocate.
Interest
Interest on late payment is safer when agreed in writing before the first credit fill, for example in bill terms the transporter accepted. Where nothing was agreed, a court decides Interest Act 1978, s.3. Put it in your credit terms from the start.
What we do not cover
Court fees, how long a case takes and small-causes court limits vary, so we give no figures. Whether a khata alone is a written contract is not settled. No step guarantees payment, and each has time limits of its own: see the time limit to recover dues. A registered micro or small supplier may also have a payment-time rule on its side, though whether a pump qualifies is doubtful: see the MSME 45-day rule. Plain meanings of notice, mediation and summary suit are in the glossary.
Calm reminders come before all of this: udhar wapas kaise le. Public shaming or threats can backfire. If in doubt, ask an advocate. Keep every message polite.
Khata Kavach does not send notices or collect dues. It keeps the account both sides can see: every fill, numbered bills, and each payment you record.
General information, not legal advice. For your own case, speak to an advocate or a chartered accountant.
Questions people ask
01What should a legal notice say?
Who you are, the bills and amounts owed, the dates, the sum you demand, a last date to pay and how to pay. Keep a copy and proof of sending. Write it calmly: no threats and no insults.
02Is mediation the same as going to court?
No. It is a meeting with a neutral person to try to settle before any suit is filed. If it settles, there is no suit. Who runs it and how long it takes: ask an advocate.
03Is a summary suit quick?
A summary suit is faster than an ordinary suit but not immediate CPC, Order XXXVII. Ask an advocate how it would run in your court. We give no timelines, because they differ by court.
04What if we never agreed interest?
Then a court decides whether to award it, and at what rate Interest Act 1978, s.3. Whether to claim interest, and from which date, is a question for 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.