Legal Question in Business Law in India

I have a pvt ltd co, a new start up 3 years back. A relative transferred funds to the company (who is not the director in the co) on grounds of taking a brand franchise, due to certain family issues at their end they did not proceed with the franchise for almost 2 years now and in between they asked for Rs 1 lac to be returned as they wanted to opt for small store with less inventory and we said that the money is utilised to procure goods for them, as it was a family relative we agreed to pay a small amount of 15000 each month for 6 months, which we did. Now suddenly the relative is asking the entire 15 lac back and claiming that they gave the money on 1% interest to us and if we do not pay the money immediately they will move to the NCLT. There is no written correspondence of whatsoever nature between both; the company and the relative. What legal action we should take to safeguard ourselves, the company and any other advice.

Asked on 3/02/20, 9:52 pm

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You have to say that , you received advance for the sale of goods or services. Procured the goods for them and then they did not take the delivery.

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Answered on 3/23/20, 2:53 am

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