You can file recovery suit. Time can't be projected. If cheques bounce then you can file complaint under section 138 of NI Act. Yes you can claim compensation
Recovery suit
I got an agreement with an proprietorship firm X to start a store in Sep 2018 and i paid him 13 Lakhs , he was delaying work and the store was only 10% ready and most of time he never shared details on how the store was progressing unless i asked him. This was in 50-50 basis on profit/loss i have an agreement with the firm X. firm X has agreement with the mall for the space where this store has to come up. So in may-2019 i decided i want to exit , but he said the delay was due to personal reason and lack of stock. He proposed a new deal where i paid him the balance 50% and he will start paying me 55k from june 2019 regardless he starts the store or not and i will not be liable for any loss and in agreement is mentioned all the eqipment , security deposit paid belongs to me and has givem me cheques for every year till 2023 that i could encash he decided to leave the business before 2023 I paid him 12+12 by end of june , he shows some progess but its july now bit store is now ever close to ready. he paid me 42k on june 14 and 55k on july 15 as part of agreement where he said he will pay 55k regarless of the store operation. i decied i will not pay him balance 2 lakhs till he starts the store , also the mall where this store has to come up mailed that he is not doing any work from last 1o days. as per the agreement i was supposed to pay him 26 by june end , but since store is no where close to operational i have not paid him 100% of the money. he has also given a cheque for 26 lakhs and he sent a mail that if he does not open store by july 27th 2019 i can deposit the cheque and i have confirmed that i will pay him the balance by june 2019. Now my query is . Can i deposit this cheque and start recovery suite , since i feel from him actions he has not intention of starting the business , as despite paying him 90% of money he has not started businesses and since i did not pay him full 100% he had unilateraly sent a mail he disqualifying the agreement and he has informed the mall that he is not working with me . How long does a recovery suit take ? what will be end result of this suit how will court ensure he pays me back if win the case , can he drag this case to an higher court? Will the court consider him liable for 26 lakhs ? if he stop the cheque how will the case proceed ? if the cheque bounce for lack of fund how will the case proceed? Will the cheque he has given me be void since i did not pay him 100% of money as agreed by me in the agreement ? Can i claim compenstation for delays in startin work and also wilfully lying? I have no confidence on him that he will return my money , how should i proceed ? do i have a strong case to recover money from him? the cheque is of delhi and i want to try him in chenna , can i do this recovery suit in bangalore? how is recovery suit different from a normal cheque bounce case ?
Asked 6 years ago in Business Law
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9 Answers
Dear Sir,
My answers are as follows:
How long does a recovery suit take ? what will be end result of this suit how will court ensure he pays me back if win the case , can he drag this case to an higher court?
Ans: It takes 2-3 years if he contests.
Will the court consider him liable for 26 lakhs ? if he stop the cheque how will the case proceed ?
Ans: Yes, court will decree your suit.
if the cheque bounce for lack of fund how will the case proceed?
Ans: You can file cheque bounce cases against him.
Will the cheque he has given me be void since i did not pay him 100% of money as agreed by me in the agreement ?
Ans: Not it cann’t be.
Can i claim compenstation for delays in startin work and also wilfully lying?
Ans: Yes, but you have to pay huge court fee.
I have no confidence on him that he will return my money , how should i proceed ?
do i have a strong case to recover money from him?
Ans: yes, of course.
the cheque is of delhi and i want to try him in chenna , can i do this recovery suit in bangalore?
Ans: If you have bank account in Bengaluru.
how is recovery suit different from a normal cheque bounce case ?
Ans: Recovery suit takes time upto 3 years where as cheque bounce case require 6-8 months.
You can file suit to recover Rs 26 lakhs with interest
2)) you can file complaint under section 138 NI if cheque’s is dishonoured on presentation
3) disposal of suit would depend upon pendency of cases in court
4) jurisdiction would depend upon clause in agreement relating to resolution of disputes
Deposit the cheque and if get bounced file FIR and cheque bounce case not recovery suit. Complete payment was subject to readiness of store which was nowhere, he himself has failed to honor his part, hence, contract rescind due to his default.
What were terms of agreement, You will make full payment by June and what about him, what was the condition to handover store ?
You can claim refund with interest and compensation through cheque bounce case.
Since the beginning his intention was to cheat you and never meant to honor agreement.
You have good case.
Case will file where you will deposit cheque,
Recovery suit takes years and heavy court fees.
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Yes court will consider him liable for complete amount as per the contract done by him.
If cheque bounces due to lack of funds you can file case of section 138 NI act.
Yes you can file a suit Under specific relief act for compensation due to delay in his part.
Yes you have strong case.
But one thing is not clear to me that why are you asking same question by different point of views.
You can file a recovery suit but before that you should create evidence that this money was given to him for some purpose which he agreed and on not fulfilling the promise or honor the agreement, he mentioned to return the amount by this cheque whereas the same was bounced for the reason of insufficient funds, this will help you to put a strong pleadings in the recovery suit or even in the cheque bounce case.
If you want the court to consider your case as genuine then follow the steps suggested above.
If the cheque is bounced in Bangalore then you can file a cheque bounce case in Bangalore also.
the time take for disposal of the case cannot be predicted.
You can discuss with your advocate on all such further issues and proceed on the basis of the suggestions received.
My lawyer filled summary suit on Aug 19th in City civil Chennai , its been 30 days now but my lawyer is not able to confirm if the person received the notice or not . The lawyer an initial ref number and said will get an case number in frist week of November , after which we can trace the case on online. my lawyer advised starting a summary suit as the trial is faster . My query : 1. how to find the status of the notice weather is he received or not? 2. how long the person avoid receiving the notice ? 3. what happens when he just ignores the notice ? 4. how many times will court attempt to deliver the notice? 5. Usually how many days the first hearing start ? 6. can he ignore court notice and also summons for hearing? Please advice me with query on all question , I feel very exhausted that after spending a lakh for court fee and laywer fee i still dont know the status of notice and way forward.
Asked 6 years ago
you get it from the court bailiff office
he can but you can also take order of pasting summons notice on his house or you can give news paper publication
after service of notice the hearing starts
1) make inquires with court registry you would come to know if notice is served or not
2) if defendant refuses to accept service it is deemed to be served
3) court would make 3 attempts to serve notice
4) if notice is returned un served you can opt for substituted service ie paper publication in 2 local newspapers
5) if husband refuses to attend court inspite of service of summons you would get exparte decree
You need to go the concerned Court and meet the Ahlmad. He will be able to give you the status of the case as well as the summons.
Normally court issues summons, then if the person after receiving it deliberately does not appear on the fixed date, then court may issue bailable or non bailable warrants.
