Practical points on contracts and on recovering delayed payments from buyers. General legal information only.
Before you sign a contract
- Name the parties and their authority to sign.
- Define scope, price, payment dates and delivery or milestone terms.
- Include termination, liability and indemnity terms that match the risk.
- Choose the governing law and a dispute resolution clause, such as arbitration with a named seat.
- Check stamping requirements for the state where the document is executed.
Delayed payments to MSME suppliers
The MSMED Act, 2006 requires a buyer to pay a micro or small enterprise supplier by the agreed date, which cannot exceed 45 days from acceptance of goods or services. Interest for delay is provided for under the Act. Disputes go to the Micro and Small Enterprises Facilitation Council. The supplier needs to be registered as an MSME. A Bill proposing changes was reported in October 2026, so check its status.
Shareholder and governance documents
A shareholders’ agreement commonly covers board composition, reserved matters, transfer restrictions, exit rights and deadlock resolution. Terms should match the Articles of Association.
Related
See the corporate and contracts practice page.
How can Wise & Partners help?
The firm drafts and reviews contracts and advises on recovery of dues. No outcome can be promised.
Important disclaimer: This article is general legal information, not legal advice. It does not create a lawyer-client relationship and is not an advertisement or solicitation under Bar Council of India rules. Verify current statutes, rules and judgments before relying on it.
