Legal Question in Business Law in India

Dear sir, I am Mr. Glen, Age:36,from mumbai.In Jan 2010 I had made a agreement for 3 years with Mr. Arif a known person who is a professor by nature. He required to start a Tutorials and I paid him Rs 6,00,000/ (by cheque) for the same on condition that on a yearly basis he will give me 50 percent of the principle amount i.e. Rs 3,00,000/ yearly irrespective of his profits or even if it is shut down. And if he is unable to pay within the due date , then 24 percent of interest per annumn will also be applicable to him. Till date he is supposed to give me Rs 11,32,500 /(including the principle).And he has paid me only 2,00,000.(Rs 1,50,00 by cash and 50,000 by cheque).Along with the agreement he had given me 9 cheques with post dated and 50 percent yearly amount till 2013 and one additional blank cheque. Now he is harassing me and reluctant to pay me anything. He is saying I don�t have money even though his classes are running well. He says that I will give only your principle amount of Rs 6,00,000, for which I doubt he will give. .Even If I put the cheques and file a bounced complaint case, along with memo of bank to JMFC U/s-138 of NI Act , will I get my entire money with interest along with the principle. What is the process for filing a complaint?Approx How many days it will take for the hole process? After the end of 3 yrs will the agreement be valid ? Sir,I am in deep trouble, since it was my harden money which I had given to him. Please guide me with all legal aspects, what should I do.
Thanking you

Asked on 3/13/12, 9:03 am

2 Answers from Attorneys

Santosh Dash Legal Consultant

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Hi Glen, it is strong case in favor of you and you have all legal steps with you to recover the money: Points in favour of you are

1. You have paid (INR 600 k) by cheque- So he cant deny of having received the money- Again thank you for making payment by cheque

2. I hope the agreement you are talking about is in writing and you are keeping the original or notarised copy with you (which can act as a legal evidence)

3. his point of payment of only principal amount is not acceptable

4. filing case under NI act- Yes, you should do. you will also be able to get interest, cost of harrassment as well as cost involved in the legal process.

I would like to advise you to consult one nearest advocate and issue a legal notice to Arif and start legal procedings.

Yes, the agreement is valid. Bar of limitation will be counted after the date of latest cheque given by him

Answered on 3/13/12, 8:22 pm

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