Cheated by business partner
I am from Chennai. My wife and I were running a Spa and at one pointed we had put it on sale as we wanted to close the Spa. The buyer who came to buy showed us lot of big dreams that we will open a branded Saloon together and it will make lot of money. He promised to bring 80% of capital through bank loan. So my wife had paid the initial capital for Franchise and he has paid the deposit to landlord. We terminated the old contract with landlord and he made fresh contact under the partnership deed entity name with landlord. However he paid the deposit through his personal account as the current account for the partnership entity was not yet created. He dodged for 3 months for bank loan not picking up our calls many times. Finally we decided to call it off and just book loss for 3 months rental to landlord and move apart.. He went to landlord and collected the deposit and has not shared with us. He has taken all the SPA furniture and equipment from our place and told he will arrange for disposal which he did not. Also the deposit paid for branded saloon is not easily refundable. He let us take all that loss and he has infact walked away more money than he invested. He is not even refunding the equipment and now not picking up our calls and not answering messages. Can you please advise how can we move forward and get justice for cheating us on this.
Asked 1 year ago in Business Law from Chennai, Tamil Nadu
1) it is necessary to peruse deed of partnership entered by you with the buyer
2) you can issue legal notice to your partner if he has defaulted in full fillment of contractual obligations and
has misappropriated assets of the firm
3) you can also file criminal complaint of cheating and criminal breach of trust against him
4) if there is arbitration clause invoke the said clause and claim damages suffered by you
1. If he has taken away your equipment then file a criminal complaint for theft against him in the nearest police station.
2. To recover your share from the deposit refunded by the landlord a suit for recovery of money with compensation in the civil court is the remedy. Before that issue him a lawyer's notice.
We are seeing a lot of such instances more so in franchisee businesses.
you should file a police complaint on the guy who cheated you of the rental deposits and also took away the furniture and equipment.
With reference to the refund of initial deposit paid to the franchisee, need to know whether the person who took away all the monies and furniture etc was a director/partner/ employee of the franchisor.
based on your inputs we can guide you on how to approach the franchisor for recovery of initial deposit.
First of all you may lodge police complaint against him for the cheating he has dne to you. Simultaneously you may issue a legal demand notice assessing the vale of the articles he has taken away and demand him to rpay the amount in lieu of the goods taken away by him.
After that you may file a recovery suit also.