1) you can be sued for non payment of dues of Rs 2 lakhs .
2) if there is arbitration clause in contract firm can invoke the arbitration clause in the contract for recovery of dues
Regarding not paying the balance amount to broker
I have an account with a currency trading firm that comes under NSE..I recently suffered huge losses in it and my account balance came 2 lac negative... What I wanted to ask is that, can the trading company sue me for not paying the due amount? as I don't have that funds with me..
Asked 8 years ago in Business Law
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4 Answers
What I wanted to ask is that, can the trading company sue me for not paying the due amount? as I don't have that funds with me..
The trading company will not be responsible to the profit or loss incurred by you in such tradings.
If you are due to the firm you are to pay it , it is your bounden duty to make good the amount you are due to the firm.
You cannot claim an excuse based on the losses you suffered.
The trading firm has all the rights to sue you to recover the amount due to them.
Yes why not. A suit for recovery of money with interest can be filed against you to recover the amount, which you may contest.
you should look the agreement because in this case liability will be fixed by the terms of indemnity clause of the agreement.
