Hello! Had invested in franchise business related to education. Had invested about 10 Lakhs in paying franchise fee and other requirement. The responsibility to provide staff, marketing, expertise was of franchise owner and was to pay salary from franchise fee collected. Franchise owner soon started to show color as his man motto was to collect franchise fee. He was running about 15 franchise of his education setup mainly in Maharashtra whereas I had started this in Noida. Franchise owner as per his responsibility was not paying salary to staff and not paying for other expenses. Soon I found out that there is major trouble with him and He has been arrested along with his key staff was arrested and several FIR were filed against them at various police stations. We after sending a termination notice closed the franchise as his wife was not in condition to pay. She asked us not to file case and her husband has promised to return the money. Franchise owner was out from jail in four months and confirmed on mail that he shall payback our money and could only do once his property and accounts are unfrozen. He kept us in loop for four year and than refused. We filed case in court and now summon has been issued by court in section 420 and 34. Kindly advise as to how this would help me recover my money with interest. Regards
1) your civil suit for recovery of money is barred by limitation as suit has not been filed within period of 3 years of his failure to pay your dues
2) complaint under section 420 of IPC for cheating is maintainable as he has deceived you and failed to make payment
You done right by filling case but you should to file file FIR u/s 402, 406, 34 IPC. once pressure would mound of rearrest , himself would have offered refund to withdraw the FIR.
Let the criminal trail proceed, recovery will by itself.
You can invoke arbitration proceedings as well as file criminal complaint of cheating against them. If arbitration clause is not there you can file suit for breach of contract
Sir .
You need to request court to include Section 406 IPC. It is criminal breach of trust. Under Section 406 IPC , he will be forced to return your money or face conviction and puníshment.
Moreover you should also file Case in Civil Court for Recovery of Money.
Rest please contact me through Kaanon
you can file recovery suit against him.
As the summons are already issued under section 420 of IPC and he has to appear before the court in the case and contest if it is prima facie prove that he is guilty of cheating and misappropriation then he will be punished accordingly in case you do not appear before the court after the summons then e court will issue non bailable warrant against him to produce him in the court by the police you need to have the patience during this time till he appears before the court
as the summons had been issued, he may settle the matter with you,
you are on right track,
you further can file suit for recovery but it may be barred by limitation,
See in case on summons he fails to appear before the court the court can issue warrant and can arrest him.
See that will firstly build pressure, secondly 420 ipc is criminal offence so with fear of punishment he will come for settlement and compounding of offence, so there are good chances that your money is recovered.
Hi,
From your input, it seems that you have filed the criminal case under section 420 read with 34 of IPC. For recovery of amount due, you need to file the civil suit for recovery or a suit under order 37 of Civil Procedure code.
Dear Client
your chances for recovering the money are getting vague because you have waited for a long time before taking any step as a recovery suit cannot be filed after three years from the date when debt is created.
but you can file a case for breach of contract and compensation on franchise owner.
This is a criminal case by which it may not be possible for you to recover your amount.
You should have filed a civil money recovery suit at that time itself.
It may be barred by limitation now, however you may file a suit even now, let the court accept it, if the court do not entertain citing the limitation clause, then you may not be able to recover it by legal means.
