Legal Question in Business Law in India

I have a written agreement (on company's Letterhead) with the Mobile manufacturing company for C&F level.I Invested 5.5 lacs in the company with the term that in the termination of the agreement company would back my invested money.But after 2.5 yrs on demand of my invested amount back company denied to return back my amount and mailed me that according to company's account book company is not owing any amount and my account has already settled. Company is not giving me any details on my demand.Also saying that company has closed its mobile division(without informing me or any other C&F of U.P.).Company is suggesting me that sell the existing mobile handset directly in the market to avoid more loss.

I have regular transaction with the company till october 2012. After october company was not responding me by any means and when I went to meet M D of company on 2nd week of march2013 I was promised by MD of the company to settle my account in first week of April.After enquiry in first week of April company mailed me that according to company's account book company is not owing any amount and my account has already settled.

Similarly rest all C&F of U.P. has get the same response from the company.

I want to know some point -

1- Agreement on letterhead of company is valid or not?

2-How I can get my details from company forcefully? by RTI what will be the process?

3-In your view by what benefit consideration Company was avoiding to contact and settlement till March2013 with me and suddenly inform me in first week of April that it has closed its mobile division?

4-Can I go in consumer forum for fast desposal of the case?

5-Is it case of civil or criminal or can be both?


Asked on 4/25/13, 10:14 am

2 Answers from Attorneys
Sachin Das Pareesseri

At first engage an Advocate who is highly experienced in Civil Matters.

Issue a lawyer notice to the Mobile Company calling up on them to take back the handsets and payback the money in 30 days.

You may file a suit for " Return of Money " immediately before the appropriate court along with all the documents to prove that you had given money to the mobile Company. Alternatively at a later stage file an I.A to take back the Mobile handsets and pay the actual price you had pad and high light about the fact that the company had stopped Mobile division, and there is no provision for service and spares, otherwise you will loose money on customer issues.

Take steps to attach the properties of the company by filing another I.A at their HO or Regional office, then only they will take up this issues, thus you can secure your money.

Please get clear account status that you did not owe any money to the company before filing this suit, otherwise the company will take up the plea that you owed the money and the amount you deposited was adjusted to it.

So do the the things carefully.

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Answered on 4/27/13, 12:24 am
Jayesh Desai Jayesh Desai

Answers to your Q.

1- Agreement on letterhead of company is valid or not?

A. Yes, valid.

2-How I can get my details from company forcefully? by RTI what will be the process?

A. In private organization RTI is not attracted. Regular Civil Suit will be the mode.

3-In your view by what benefit consideration Company was avoiding to contact and settlement till March2013 with me and suddenly inform me in first week of April that it has closed its mobile division?

A. Can't say.

4-Can I go in consumer forum for fast desposal of the case?

A. No - you would not be fall within the definition of a consumer.

5-Is it case of civil or criminal or can be both?

A. Depends on complete facts of the case. It is a Civil Case for sure, it can be a Criminal case also, provided a proper study is made of the case then only an opinion can be expressed.

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Answered on 4/27/13, 11:36 pm


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