Legal action against a debtor

You may serve a legal notice on that private company for creditors voluntary winding up (assuming amount is more than 50K)

Provided you should have evidence to support your case.

Your attention is also drawn to law of limitations which says that the debt should be outstanding for less than 3  years otherwise it can be time barred.

In case, the customer has made the cheque payment and the cheque is returned unpaid , you may go under action u/s 138 of the Negotiable instrument Act. That procedure is much faster (under section 138 of Negotiable Instrument Act return of cheque is also a criminal offince so the its a stronger course of action

regards.

Thankyou Mr. Kedar. That was really helpful.

I would further like to ask.

Do you still need to serve a letter of demand under section 129 of National Credit Act?

I think there are certain conditions on fulfilment of which the Debtor could be called a 'Non-Paying debtor'.

If the debtor is disputing the amount that he owes, what are the measures to be taken?