You can claim damages.from him, a legal notice.can be issued to partner for the said deed and you can claim.share in profit as damages. If on legal notice he doesnot give you share file a civil suit for recovery of.same.
Breach of Trust
While we was in notice period of discontinuation of partnership; my partner have without informing me- 1. applied for a work which he not supposed to due to which our firm could not get that work and 2. while entering into partnership he had given a letter to me as well as our governing body that he will not work personally and work only through firm. Can I take action against him? where? what will be punishment?
Asked 7 years ago in Business Law
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9 Answers
Send him a legal notice first, calling upon him to exercise restrain in taking up this job.
if the legal notice fails to help, approach Court and seek an injunction against him.
If your business partner breach of contract with your partnership agreement, you may take advantage of several different legal remedies.
When a contract has been broken, the party who suffers by such breach is entitled to receive, from the party who has broken the contract, compensation for any loss or damage caused to him thereby, which naturally arose in the usual course of things from such breach, or which the parties knew, when they made the contract, to be likely to result from the breach of it.
Such compensation is not to be given for any remote and indirect loss or damage sustained by reason of the breach.
Compensation for failure to discharge obligation resembling those created by contract: When an obligation resembling those created by contract has been incurred and has not been discharged, any person injured by the failure to discharge it is entitled to receive the same compensation from the party in default, as if such person had contracted to discharge it and had broken his contract.
If you have any agreement in this regard that he is not working in competition to the firm then you can move to the court for a special performance of the agreement and for the recovery of the losses due to his personal business which is comparative to the business of the partnership firm
Partner during subsistence of partnership cannot carry on any business
2) firm can sue the partner for damages if he has carried on any business
This is my response to you:
1. One will have to read the terms of the letter then only best opinion can be given;
2. You can send a legal notice to him first;
3. You can seek compensation for damages for the loss of business and mental loss;
4. Consult a local lawyer and take steps.
Please issue a breach of Trust notice immediately.
Dear Sir
Yes, you can take action. Punishment is 3 years and the jurisdiction is the place where firm was registered
1. Yes you can take action against him.
2. If you have incurred some loss then file a suit to claim the damages.
2. Otherwise file FIR against him.
4. Otherwise file a auit for breach of contract.
For a strong case you should show that some damages were incurred by you.
