Legal Question in Business Law in India

I am planning to invest amount "X" in private business

(it is partnership business and registered, it is not a private limited).

I will not own or involve in business but I will be expecting returns Y% of "X" per month for period of agreement(3-5 years).

After the agreement period is completed, I should be returned complete "X" amount.

How can I secure my money X?

1. Apartment from agreement on bond paper,

any additional securities required?

Please provide list of all.

2. Promissory Note is applicable here?

(as it is not loan, it is investment in business)

3. Post dated check can be collected?

Is it legal to collect the 3 years ahead post dated checks?

Any other solution?

Please guide me to secure my amount and ways to get it back in case of default.


Asked on 8/27/13, 2:56 am

1 Answer from Attorneys
Vivek Mapara Vivek N. Mapara

If the other side is agreeable. firstly execute and agreement to that affect, that upon the maturity of agreement period, you will be entitled to get X amount from the Partnership Firm.

You can also stipulate in teh agreement that, in case upon the maturity if the said X amount is not received by you then you can realize it by encashing the security in the following mode

(1) Bond is Good.

(2) You can take promissory note, but such promissory note has to be explicit in terms of date and money and it is absolute and not conditional. SO doubt if the other side agrees to that

(3) Post Dated Cheques, yes it is also valid.

do let me know should you need any help

VIvek N Mapara

Attorney

www.vnmlaws.com

Read more
Answered on 8/27/13, 11:27 pm


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