• Dealer vs Company


I was a dealer of SF Sonic batteries for the past 4 years. Presently the company asked me to increase my capital 4 times which was above my capacity as of now. Hence the dealership was cancelled. During last year the company floated a scheme for purchasing more batteries by the dealers. For getting qualified on that scheme , the company has to give me gifts worth Rs. 60,000. But now the company refuses to give me those gifts by saying it is a dealer loyalty program. Kindly advise what should I do.
Asked 3 years ago in Business Law from Trichy, Tamil Nadu
1) when you were appointed as a dealer there must be agreement entered into by you with the company . 

2) it must be mentioning capital to be invested by you in running dealership . 

3) if there is provision authorising company to direct dealer to increase capital you would have to do so as per agreement signed by you with company . 

4) if your dealership has been cancelled by company take back your security deposit and do some other business . 

5) if company has failed to give you gifts although you qualified under the scheme issue legal notice to the company to either pay you Rs 60,000 in cash or give gifts as you complied with all the requirements laid down by company
Ajay Sethi
Advocate, Mumbai
46789 Answers
2768 Consultations

5.0 on 5.0

1. Do you have written document/evidence that the Company asked you to increase your capital 4 times?

2. Do you have evidence that they have cancelled your dealership for not being able to enhance your capital 4 times? 

3. Do you have evidence about their said scheme and the reason shown for refusing to act as per their said scheme?

4. If all the above questions are answered in affirmation, file a damage suit before the civil court.
Krishna Kishore Ganguly
Advocate, Kolkata
18772 Answers
453 Consultations

5.0 on 5.0

Unless there is any agreement put into writing you can not go for breach of it.
Since you indulge in commercial activities you can not file any case in consumer forum.
If you suffered any loss out of erratic conduct of the company , you can file suit for damages.
Devajyoti Barman
Advocate, Kolkata
13146 Answers
175 Consultations

5.0 on 5.0

U should file a suit for Breach of Contract and seek specific performance of the terms violated by the said Co.(SF Sonic Batteries), if Ur contention  have valid evidences like any Agreement between U and "SF Sonic Batteries"; as well as any letter of Cancellation of Ur Dealership; any proofs of your eligible gifts from them so that U can seek legal remedy and the loss sustained be recouped and even U can protect Ur License.
K. N. Mohan Mudaliyar
Advocate, Hyderabad
6 Answers

4.0 on 5.0

1. You must have entered into an agreement with the company at the time of inception of your dealership which governs mutual rights and duties. Does it put a cap on the capital to be invested by you, or does it give latitude to the company to ask you to increase the capital?

2. Did the company communicate in writing to you asking you to increase the capital 4 times?

3. If the answer to the above 2 questions is in the affirmative then you may adopt the legal recourse of filing a lawsuit for damages in the court against the company by challenging your dealership cancellation as illegal. A lawyer's notice may be issued prior to filing the case.
Ashish Davessar
Advocate, Jaipur
23140 Answers
640 Consultations

5.0 on 5.0

this might be company's promotional scheme, then you can't claim for that because it is not your legal right to get but you can claim for compensation. cancellation of dealership may be challenge before court because it is governed by company's memorandum. in sales promotional programme company can change its norms according to sales. but if there is any cheating means drastic change  in terms and conditions could be challenged. you should read the terms and conditions of that scheme then you should proceed further.
Shivendra Pratap Singh
Advocate, Lucknow
5066 Answers
78 Consultations

4.9 on 5.0

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