Legal Question in Business Law in India

27.02.2014

Dear Deepak,

Let us presume you are running a business of cultivating mushrooms or strawberries. You appointed commission agents to market and sell mushrooms or strawberries at a particular price per pack and you will pay them a certain percentage of commission on the sales volumes each of them generates. What you need to take into consideration is whether you appointed them as purely commission agents or whether you agreed to give them a basic salary plus commission on sales. If the former be the case, you ought to have spelt out in the agreement about who is going to bear and incur all the related expenses like agent's local conveyance, outstation travel, and business campaigning or propaganda expenses. There is every possibility that the Registration Fees that the opposite party is referring to may well have been your Capital in the business. To protect your image and reputation, you should aptly reply in writing to the Labour Commissioner's notice and proceed accordingly.

Regards,

Advice:

You should immediately hire an advocate related to the subject and can't give any response before any authority without proper to get advice on the subject.

For the subject you may contact with me.

Shailesh Kumar

Advocate, Jharkhand High Court, Ranchi.