Money recovery

Naveen Kanth Dasari (Querist) 25 July 2017 This query is : Resolved
Hello Experts,
I have a query regarding a case. I need your suggestions.
The facts of the case:
Two legal entities entered into an agreement of contract for supply of materials, one is a company and the other is the distributor (lets refer the Company as A and the distributor as B). At the time of agreement the distributor given 10 lakhs to the company as refundable security deposit. Now after 5 yrs of Business (i.e., in the month of Jan 2017) the company closed its business and winded up all the activities. However the Company has not refunded the Security Deposit to the B. And one more thing i would like to bring to your notice that the proprietor was also working as a salaried employee of the company, and now when the distributor ask the company for the deposited money the company is putting a false allegation of Data & Records Theft on the proprietor (who happens to be an employee in the company). So under this circumstances can the Distributor file a money recovery suit against the company for recovering the deposited amount and any other remedy available.

thank you.

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Rajendra K Goyal (Expert) 25 July 2017
Send legal notice and file suit for recovery.

Naveen Kanth Dasari (Querist) 25 July 2017
Anymore suggestions

Adv. Yogen Kakade (Expert) 26 July 2017
Filing recovery suit is the only option. The amount can be recovered with interest and costs.

Adv. Yogen Kakade
Jurycon Incorporation (Advocates & Consultants)
Email: juryconincorporation@gmail.com
Web: www.juryconn.in Phone: 020-65248888 / 09225510883

krishna mohan (Expert) 26 July 2017
It is understood Distributor (Proprietor) also acted as an employee. But Employee and employee relationship is independent. You can check the agreement entered into on terms specified for Security Deposit and forefeiture grounds. If arbitration is provided, you can take the help of legal expert to draft a legal notice for recovery of deposit with interest and failing which resort to Arbitration as provided in the contract so that remedy is seen much faster.

Dr J C Vashista (Expert) 28 July 2017
I fully agree and appreciate the expert advise of Mr. Yogen Kakade.
However, before proceeding please clarify on the issue of:
1. Whether the company (A) was registered or unregistered? If registered implead the company as one of defendant.
2. Whether there was "some" written agreement for security deposit of Rs. 10 lakh between company (A) and distributor (B) ? If yes, the case is absolutely in favour of B; otherwise collect relevant evidence(s) to prove the case/ qua security deposit.
3. You have mixed up (confused) the connotation of "proprietor", employee and "company", you are required to be sure of the locus with respect to A?
4. It would be better to seek help of a local prudent lawyer before proceeding for appreciation of facts, documents and guide you properly to sail through the case in favour of B (your client).
Best wishes.

Naveen Kanth Dasari (Querist) 28 July 2017
Thank you experts, clearing your the questions raised by the Dr. JC Vashista, It is a registered company, their is a written agreement and the distributor also worked as an employee in the company and their is no arbitration clause mentioned in the agreement.