Legal Question in Business Law in India

Respected Sir,

Thanks for your legal advice, but sir right now I have left the job and was fully concentrating on this Caf� project, is there a way out that we have a mutual understanding, which I m constantly requesting her

to at least let me know as to where I stand as now the project has started and yet I have no partnership deed in my hand, which I feel I have the right to ask and have at this moment, because she is insisting

that I still to let her know my complete plan for further Caf� operations, only than she May make our agreement accordingly, also she is not in the mood of putting or letting me know the capital amount, saying

that she will arrange the funds accordingly and as per requirement produced by me to her, so in that case she will release money as and when I need money for a specific work, means I solely m handicapped n

have to rely on her on day to day work, which means that she either is playing dirty or has lack of TRUST.

Sir basically she is not from the hotel industry n now that by just investing xyz amount n seeing the cash flow coming in on a day to day basis she is may be getting greedy.

Sir is there a way out that I still reduce my share n come down to 30/70 plus we agree on a fixed monthly remuneration for my survival.

She has also started involving her brother n colleagues in the operational issues without my consent n they order the staff how things has to be done, which I told her that outside interference may hamper

the smooth operation n may affect my respect n relation with all whom I m connected.

Sir what in case if I back out n ask for the due but she refuses as I have no documents, how can dues be settled legally.

So basically M sure u must have got what kind of problem I m.

Please be kind enough and advice.

Thanking You,

Chef Kothari.

[email protected]

[email protected]


Asked on 2/01/15, 1:08 pm

1 Answer from Attorneys
Fca Prashant Chavan Expert Edge LLP

02.02.2015

Dear Chef Kothari,

I summarily answer queries on websites free of cost. I expect to be paid a preliminary fee of Rs. 1,000/- (Rupees One Thousand Only) to be credited to my Standard Chartered Bank A/c 24310025330 (IFSC Code : "SCBL0036053) Lokhandwala Complex, Andheri (West), Mumbai-400053 vide an NEFT / RTGS funds transfer from your Bank, with due intimation to me.

Coming to your query :

At the outset, if your initial business discussions have taken place in the presence of a third party - Chartered Accountant or a legal advisor, you should tell your financing partner upfront, that we must involve the CA to manage the day to day accounting and book-keeping aspects of the business entity. Tell the financier that without setting up business monitoring systems and properly documenting all transactions, neither she nor you will be in a position to ascertain where the business is heading to. I would advise you to refrain from casting any doubts on the integrity of your financing partner, simply because that will unnecessarily complicate matters further. You have rightly alerted her of the risks of other's interference in the business, which will eventually lead to the staff not knowing what to do and whose instructions to follow. Being the Chef, tell her categorically that you will concentrate on the daily menu and oversee the preparation of delicacies and dishes which will be admired by all our customers, which comes at a price tag. Since the menu's you plan for the week will bring in customers, in my opinion, you should settle for a higher salary plus 15% incentive of the total business generated, payable to you bi-monthly or at the most quarterly. She knows well that virtually all your known contacts have already been visiting the Cafe regularly. Lure her with the idea that your new menu's will attract new customers. I again strongly recommend that all discussions are carried out in the presence of a CA or your legal advisor. If you decide to opt out of the venture, in the absence of written documentation, you will be at a loss. Adopt the middle of the road approach by dividing your time at her Cafe and the other half at working on your own Cafe, or serving as a part-time Chef in another Cafe.

My professional invoice will be mailed to you on receipt of payment.

I eagerly await your prompt action and response.

Regards,

Read more
Answered on 2/01/15, 7:54 pm


Related Questions & Answers

More Business Law questions and answers in India