Dispute & Return Handling — What Good Suppliers Offer in Writing

Last reviewed: 2026-05-06

Good steel pipe suppliers document their dispute handling before the PO is signed: non-conformance claims accepted within 7 days of dispatch with photo evidence and MTC reference; short shipments replaced at supplier cost within 48 hours of verification; wrong grade dispatched triggers immediate replacement with correct material or full credit note. Get these terms in the PO termsheet — verbal promises evaporate when 20 MT of wrong-grade pipe arrives at your site with project deadlines looming.

What should a written return policy include?

Claim window: Specify days from dispatch (not delivery — transit is supplier's risk if freight-included). Standard is 7 days for visual/dimensional defects; 48 hours for short shipment count disputes.

Evidence required: Photos of damage/defect with pipe markings visible; copy of MTC; packing list; waybill. This links the problem to the specific dispatch batch.

Resolution options: Replacement at supplier cost (best), credit note against future purchases (acceptable for minor issues), or refund (rare — steel is not typically returned, only replaced).

Exclusions: Cut-to-length orders (cannot be resold), willfully damaged material, and pipes installed/welded (acceptance upon installation). State these clearly to avoid dispute.

How do legitimate suppliers handle non-conformance?

Dimensional non-conformance (OD/wall thickness out of spec): Return freight paid by supplier; replacement dispatched within 5 days of claim acceptance.

Wrong grade dispatched: Immediate replacement with correct grade; supplier arranges reverse logistics for wrong material. If correct grade unavailable, full credit note issued.

Short shipment: Verified against packing list and waybill. Missing quantity reissued at supplier cost within 48 hours; expedited transport if project-critical.

Documentation errors (wrong MTC, missing IBR): Corrected documents couriered within 24 hours; IBR correction requires mill re-issuance (5-10 days).

What protections should my PO include?

Material acceptance clause: "Material subject to inspection and approval. Payment does not constitute acceptance."

Liquidated damages: For late delivery beyond agreed date, 0.5-1% of order value per week of delay, capped at 5-10% of total.

Force majeure: Defined exclusions (natural disasters, mill strikes, government shutdown). COVID-19 is no longer force majeure; supplier should have adapted.

Governing law: Indian Contract Act, 1872; jurisdiction of Kanpur courts or mutually agreed arbitration (ICA rules).

Termination for convenience: Buyer right to cancel unshipped portion with 7 days notice and full refund of advance.

Dispute scenarios and standard resolutions

Dispute scenarios and standard resolutions
Scenario	Evidence needed	Standard resolution	Timeframe
Dimensional out-of-spec	Photos + MTC + caliper readings	Replacement at supplier cost	5 days from claim
Wrong grade dispatched	Photos of pipe markings + MTC	Replacement or credit note	7 days from claim
Short shipment	Packing list + waybill + unloading photos	Reissue missing quantity	48 hours from verification
Visible surface defects	Photos pre-installation	Replacement or credit (partial)	5 days from claim
Missing documentation	Packing list comparison	Courier corrected docs	24 hours (MTC), 5-10 days (IBR)
Late delivery	Waybill date vs PO date	Liquidated damages per PO terms	NA — claim against LD clause

Specifications at a glance

Specifications
Standard claim window	7 days from dispatch
Short shipment claim window	48 hours from receipt
Replacement dispatch time	5 days from claim acceptance
Credit note processing	14 days from claim acceptance
Liquidated damages rate	0.5-1% per week (cap 5-10%)
Non-returnable categories	Cut-to-length, installed, willfully damaged

Frequently asked questions

Can I return steel pipes if I ordered the wrong size?

No — buyer error is not a supplier obligation. Cut-to-length and custom orders are non-returnable. Some stockists allow exchange for in-stock sizes with 15-20% restocking fee; mill-direct orders cannot be returned.

What if the supplier refuses to accept my claim?

Escalate through the PO's dispute resolution clause (typically ICA arbitration). For amounts <₹5 lakhs, the Kanpur District Commercial Court offers expedited handling. Document everything from day one.

Do I pay freight on replacement shipments?

For supplier errors (wrong grade, short shipment, dimensional non-conformance), replacement freight is supplier-paid. For buyer convenience (expedited replacement while keeping original), freight may be buyer-paid by agreement.

How do I prove non-conformance?

Independent TPI inspection by SGS/BV/Lloyds at unloading. Cost is buyer-paid upfront; if non-conformance is verified, supplier reimburses inspection cost and resolves the claim.

What is "acceptance upon installation"?

Once pipes are cut, welded, or built into your structure, they are deemed accepted. Claims must be filed while material is in original dispatch condition — inspect upon receipt, before installation.