Legal Question in Business Law in India

Dear sir, I am Mr. Glen, Age:36,from mumbai.In Jan 2010 I had made a agreement for 3 years with Mr. Arif a known person who is a professor by nature. He required to start a Tutorials and I paid him Rs 6,00,000/ (by cheque) for the same on condition that on a yearly basis he will give me 50 percent of the principle amount i.e. Rs 3,00,000/ yearly irrespective of his profits or even if it is shut down. And if he is unable to pay within the due date , then 24 percent of interest per annumn will also be applicable to him. Till date he is supposed to give me Rs 11,32,500 /(including the principle).And he has paid me only 2,00,000.(Rs 1,50,00 by cash and 50,000 by cheque).Along with the agreement he had given me 9 cheques with post dated and 50 percent yearly amount till 2013 and one additional blank cheque. Now he is harassing me and reluctant to pay me anything. He is saying I don�t have money even though his classes are running well. He says that I will give only your principle amount of Rs 6,00,000, for which I doubt he will give. .Even If I put the cheques and file a bounced complaint case, along with memo of bank to JMFC U/s-138 of NI Act , will I get my entire money with interest along with the principle. What is the process for filing a complaint?Approx How many days it will take for the hole process? After the end of 3 yrs will the agreement be valid ? Sir,I am in deep trouble, since it was my harden money which I had given to him. Please guide me with all legal aspects, what should I do.

Thanking you


Asked on 3/13/12, 9:03 am

2 Answers from Attorneys
Santosh Dash Legal Consultant

Hi Glen, it is strong case in favor of you and you have all legal steps with you to recover the money: Points in favour of you are

1. You have paid (INR 600 k) by cheque- So he cant deny of having received the money- Again thank you for making payment by cheque

2. I hope the agreement you are talking about is in writing and you are keeping the original or notarised copy with you (which can act as a legal evidence)

3. his point of payment of only principal amount is not acceptable

4. filing case under NI act- Yes, you should do. you will also be able to get interest, cost of harrassment as well as cost involved in the legal process.

I would like to advise you to consult one nearest advocate and issue a legal notice to Arif and start legal procedings.

Yes, the agreement is valid. Bar of limitation will be counted after the date of latest cheque given by him

Read more
Answered on 3/13/12, 8:22 pm

Mr Santosh Dash is absolutely right. Contact a local lawyer and start the proceedings.

Read more
Answered on 3/13/12, 11:21 pm


Related Questions & Answers

More Business Law questions and answers in India