Overview
Who needs this?
- Suppliers and contractors who have not been paid for delivered work
- Buyers who paid but received defective or late goods or services
- Landlords and tenants disagreeing over lease terms
- Business partners disputing the meaning of a signed agreement
Requirements
You should be able to say yes to each of these before you start.
- A valid contract exists, written or provable from conduct and correspondence
- The other party has failed to perform or has performed defectively
- The claim is brought within the limitation period, generally two years from breach
- You have performed, or were ready to perform, your own side of the bargain
Where are you now?
Tell us which stage you have reached and we will highlight what comes next. Your choice is saved on this device.
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Stage 1 of 5 · Review
- 1Review
- 2Demand
- 3Mediation
- 4Claim
- 5Enforcement
I'm at this stage:
What typically comes next: Demand — usually the step “Send a formal demand letter” below.Jump to the steps
Step-by-step procedure
- 1
Step 1
2–5 daysReview the contract and gather evidence
Read the contract closely for payment terms, notice requirements and any dispute clause. Collect every document that shows what was agreed and what actually happened.
Legal advisor
Tip: Check whether the contract requires arbitration; if it does, a court may refuse to hear the case.
- 2
Step 2
7–15 days for responseSend a formal demand letter
A lawyer's letter sets out the breach, what you require and a deadline for compliance. Many disputes end here because the other side realises you are serious.
Sent by advocate on your behalf
- 3
Step 3
2–6 weeksNegotiate or mediate
If the letter produces a response, negotiate a payment plan or settlement. Community mediation centres and private mediators can help when direct talks stall.
Mediation Centre or private mediator
Tip: Put any settlement in writing and have it signed; an oral promise is hard to enforce later.
- 4
Step 4
1–2 weeks to fileFile a claim or start arbitration
If no settlement is reached, file a plaint at the District Court for specific performance or compensation, or invoke the arbitration clause if there is one. Court fees are paid on the value of the claim.
District Court or arbitral tribunal
- 5
Step 5
6–18 monthsCourt-referred mediation and hearing
The court usually sends the case to its mediation centre first, and if that fails it hears evidence from both sides. The judge decides whether the contract was breached and what remedy is fair.
District Court
- 6
Step 6
1–6 monthsEnforce the judgment or award
A judgment or arbitral award can be enforced through the court's execution section, which can attach bank accounts or property. Enforcement is a separate application, so budget time for it.
District Court execution section
Tip: Ask the court for an interim order early if you fear the other side will move assets.
Documents required
Tick items off as you gather them.
0 of 6 ready · 5 required
Estimated cost
| Item | Typical range (NPR) | Notes |
|---|---|---|
| Government fee | Rs. 1,000 – 60,000 | Court fee on the claim value; mediation fees are small or waived at court-annexed centres. |
| Professional fee | Rs. 15,000 – 1,20,000 | Demand letter and negotiation at the lower end; contested litigation at the higher end. |
| Other expenses | Rs. 2,000 – 15,000 | Courier, notarisation, expert reports and copies. |
| Indicative total | Rs. 18,000 – 1,95,000 | Sum of the ranges above. |
Estimated timeline
1–18 months
Typical end-to-end duration once your documents are ready. Demand letters resolve many disputes within weeks; litigated cases take a year or more.
Relevant laws
The provisions each stage of this procedure rests on.
Frequently asked questions
Related services
Need a hand?
Talk to a Legal Advisor about contract dispute
A 30-minute consultation is usually enough to confirm your documents, spot the step most likely to delay you and agree a plan.