Dishonour of cheque
Rajes Agar
(Querist) 09 September 2010
This query is : Resolved
We (Two partners) have started a partnership business of stock sub-broking.
1) all cash capital invested by 2nd partner, 1st partner come with office and furniture.
2) broking was not run because of scarsity of clients, so 2nd partner given additional Capital to 1st partner (in his personal name) to trade in his own name and make some profit, but 1st partner incurred a huge loss, about 2,50,000.
thats why 2nd partner wants to exit.
Then after much discussion the both decided to settled the compensation in 1,00,000, that would be given by 1st partner to 2nd partner.(The whole capital of 2nd partner was 3,20,000., in which 70,000 was misc. expenses) & 1st partnet capital was Office & Furniture.
After writing in a piece of paper of the above discussion the 2nd partner refused to agree on that Compensation, then after another meetiong it was decided to settle in 1,50,000 in place of 1,00,000.
Now the 1st partner given him 50,000 in cash as a part payment of 1,50,000. The balance of post dated cheque of bi-monthly payment of Rs. 10,000 issued by 1st partner to the 2nd partner.
Now the business is still not running good and able to meet daily expenses only.
So my question is can i get any legal relief by Law, if the 2nd partner misutilize those post-dated cheque. Because of trading I incurred a 2,50,000 and above loss in my account
adv. rajeev ( rajoo )
(Expert) 09 September 2010
You have to issue notice to him informing him about your inability to pay the cheque amount and request him not to present the cheques. The same has to be informed to the bank also and inform the bank to not to honour the cheques without informing you. These is the only way you can postpone the payment of cheque amount. Better to clear the debt
s.subramanian
(Expert) 09 September 2010
At the outset,it opposed to common sense and law asto how a settlement can be made in a partnership for the loss incurred putting the blame on one of the partners alone. It is opposed to the basic principle of partnership evolved by the Indian partnership Act,1932. It is a venture for sharing the profit and loss equally. Then why did you agree to pay compensation to the other partner when the business could not be profitable due to lack of clients? if you had made a profit,then will your partner allow you take it fully? What you are indulging in is a wagering contract. There are bound to be ups and downs in such business. Both must be prepared to share equally whether it be profit or loss. Now you ask for a return of the PDC that you have given him since you are not legally liable to pay anything to him at all. otherwise take legal action for the recovery of the PDC from him in advance.
s.subramanian
(Expert) 09 September 2010
You can also instruct the banker to stop payment of the cheque. do it at once without delay.
Rajeev kulshreshtha
(Expert) 09 September 2010
I agree with the experts but before making stop payment you have to issue a legal notice to the other party.
Rajes Agar
(Querist) 10 September 2010
But previously before the dissolution of partnership, I paid him all the Brokerage (its almost 7 Months Brokerage 40,000) till that date to 2nd partner by cheque, so that somehow it may compensate his capital loss. (The loss was due to share trading loss) by keeping a small portion of brokerage for business expenses.
But agreement was made only for stock broking not for share trading.
The profit & Loss was equally i.e. 50:50
Surrender K Singal
(Expert) 11 September 2010
Was there any deed of partnership and similarly any deed of dissolution of partnership ?
