Legal Question in Business Law in India

I m a trader in edible oil, and i have given my company's blank check to broker to make advance payment to seller party but i haven't purchased any goods neither take delievery but the broker has taken advantage of the blank check and has depostied to his personal a/c 1 check was being stopped by me while 2nd was returned bcoz of his mistake in date. now he is forcing me to pay amount or he will do legal action . what i do?


Asked on 4/23/12, 3:34 am

3 Answers from Attorneys
Santosh Dash Legal Consultant

Strange. Tell him what if you file a theft case against him?

you were not liable to pay anything to the broker and for that there is nothing wrong on you in making stop payment. I dont find any reason for the broker to file report and have a case on you.

Dont worry

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Answered on 4/23/12, 4:07 am
Fca Prashant Chavan Expert Edge LLP

23.04.2012

Dear Sir / Madam,

In today's world, never make advance payments to anybody. You remain committed to honour transactions entered into by the broker on your behalf, and you are unnecessarily creating avenues for misuse.

Whilst trading in any commodity transacted on the MCX, insist on the broker giving you a contract note binding him into the transaction, before making any payment.

You can mail me for further on-line legal advice at [email protected]

Regards,

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Answered on 4/23/12, 5:35 am

Hi,

You must ask him to produce evidence of a legal debt through written communication. Even then if he sends you a legal notice then send him a proper legal reply which is important to substantiate your defence in case he files a case.

He will not suceed in his intentions dont worry.

Regards

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Answered on 4/23/12, 10:17 pm


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