I have taken a franchisee of a courier company on August 2014. I agreed to provide space, office furniture and fixture, stationery, computer, printer, scanner, bar-code reader, glow sign board, weighing scale etc. Franchisee fee of Rs 500000/- (Rs 350000/- refundable and Rs 150000/- nonrefundable). I enter into an agreement with the company MD, as per the agreement I had to provide the above said items and amount. The company will be providing a Center Head, Marketing staff, delivery staff etc, and the company assured me a Break-even within 6 month. The company assured me a monthly return of 18% on monthly sales, if BEP is not reached the company will compensate the shortfall. Now the issue is that it has being more then a year and till now I have not received not a single penny. Nor the company is providing any staff to run the business neither they are opening the branch. How do I get rid of this issue, the company is from Tamil Nadu and I a from West Bengal. Kindly suggest.
Asked 2 years ago in Business Law from Kharagpur, West Bengal
1) it is necessary to peruse the franchisee agreement signed with the company
2) if the company has committed breach of contract you can terminate the agreement and sue the company for damages .
3) if there is an arbitration clause in your contract invoke the arbitration clause
You can issue a lawyer's notice to the company to remind it of its contractual obligations. If the company does not honour its promise even after the receipt of your notice then you can file a lawsuit to recover the amount due to you and also compensation for breach of contract.
Well, the terms of the agreement is key to the recourse you may adopt.
Hence only after going through the same I would be better placed to reply your query.
Prima facie I may say that you have both civil and criminal remedy to resort to.
Since you are from West Bengal , you may send the agreement to me to advise further.
You first issue a legal notice demanding the fulfillment of the terms and condition of the agreement, it he does not respond or there is no satisfactory reply or noncompliance of the demand made, you may approach the consumer court for deficiency of service due to breach and violations of the conditions of the contract. You can also file a recovery suit against the company for the amount due to you in a civil court in Calcutta.
Hi sir/madam, you have to issued a legal notice to the company for comply the demand notice for the same. If they have failed to do so, you have to file specific performance suit against them. If you refund your money as well as investment money you have to file recovery suit by filing issued a legal notice and to file the suit for recovery of money against the company in your jurisdictional court i.e., in your hometown.
1. File a police complaint of cheating and defrauding you by the Company and its MD, immediately under copy to the S.P.,
2. If police fails to take any action, file a Writ Petition before the High Court against police inaction,
3. Also file a Recovery Suit praying for direction upon the opposite parties to refund you the said amount spent by you with interest, damage and cost.