Legal Question in Business Law in India

Dear Sir

Iam a distributor for Amul in kerala.Iam purchasing products from company warehouse at cochin.Iam selling the products to retailers using my own billing software.Now the company has installed their own on line billing software and is demanding to bill only through their software.They are threatening me stating that if companies software is not used they will stop billing products to me.Is it legal from the company side to install their own software and have access to all my business details. Can I continue using my own billing software.if so where can I get remedy.

Rgs

Sudheer


Asked on 3/03/15, 5:20 am

1 Answer from Attorneys
Fca Prashant Chavan Expert Edge LLP

03.03.2015

Dear Sudheer,

A reference to your Distributorship Agreement with Amul regarding the software usage clause is important. If you have bound yourself in the Agreement that you will use the Company software as and when the Company insists upon the same, in my opinion, you and your staff should quickly learn and adapt yourself to the Company software and compare its features with your own software. Should any features in your own software be more enhanced than the Company's software, you should request the Company to incorporate the enhancements and features in their software whilst they implement it. In case you are not bound by the Company's software usage clause in the Distributorship Agreement, you should take a business call and assess the extent of compromise of business secrecy involved. Here too, I do not envisage anything is amiss, since your margin and sales commission will be based on your sales turnover of Amul;s products... higher the product sales turnover, higher will be the sales commission slab wise. You should decide the matter with an open mind.

Regards,

Read more
Answered on 3/03/15, 9:43 am


Related Questions & Answers

More Business Law questions and answers in India