Web Server was shut down

Aug 28,2001

We procured 2 web servers from a leading web hosting company in Nov 2000. There is a monthly billing of $985 payable on monthly basis. We started off with an advance payment of $1250. Two months ago we discovered that the ISP is charging us exhorbitantly. We took up the issue with their billing dept and after constant follow up they felt that they sorted out the issue on Aug 19,2001. Our accounts dept was looking into the new bills. But to our surprise the vendor stopped all our services on aug 22,2001 by shutting down the server without any prior intimation. This has caused us lots of trouble and till date the issue is not sorted out even after doing all the payments.

The agreement that we signed with mentions that the services can be stopped if the payments are not done. But in this case the Vendor had overcharged and we took a decision not to pay till the billing issue is sorted out. Our credit period is 45 days but the vendor mentions that we pay all the dues which we have done.

since this has caused us lot of loss in terms of business can we pull the vendor to court under any law ?

Regards,
Rishikesh