Legal Question in Business Law in India

Deposit paid to franchisor not returned.

hi i had a franchisee for 5 yrs with indias largest isp cafe chain. s**y ltd. on nov 08 my contract got over and i asked them to return my deposit (25000rs). but i havent yet received it. can i file a winding up petiton after giving a 21 day notice period as req. under sec 434 indian companies act 1956? is the min limit amount raised to rs1 lac frm 500rs?


Asked on 1/26/09, 10:30 am

3 Answers from Attorneys
Sudershan Goel India Law Offices of Sudershan Goel - Advocate

Re: Deposit paid to franchisor not returned.

You may consider approaching the consumer court for recovery of your money as well as damages.

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Answered on 1/26/09, 5:22 pm
Vishnu Langawat Vishnu Langawat & Associates

Re: Deposit paid to franchisor not returned.

Creditor can file winding up petition if the amount involved is more than one lakh rupee. Since in your case amount involved is less than Rupee one lakh, as per our understanding you can file only recovery suit with competant court of jurisdiction, it is advisable to serve upon the company a recovery cum demand notice.

DISCLAIMER:

Please note that opinion and view is provided for educational information purposes only. It is not intended to provide legal advice and should not be relied upon in that respect. You should not act or rely on the answer without seeking proper advice of a qualified professional.

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Answered on 1/26/09, 1:03 pm
Prakash Yedhula Judis Associates

Re: Deposit paid to franchisor not returned.

Yes. You are right. The limit is raised to Rs.1 lac by Act 11 of 2003, sec. 52, for "five hundred rupees". You can file a suit instead.

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Answered on 1/26/09, 1:53 pm


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