Security refund from a company

Sanjiv (Querist) 13 December 2011 This query is : Resolved
Sir,
I gave Rs25000/- as security deposit SBSIL and was dealer now I have left dealership of company and want security amount with credit balance to be refunded.
SBSIL on basis of Form "C" demand is not refunding the amount but instead sent the legal notice demanding Rs95000/- with penalty for delay in sending Form "c".
I have sent the Form "C" it is with the company but they are not refunding the security amount claiming that the Sales Tax authorities have charged them this amount.
Am I bound to pay this?
They can claim this in appeal to authority as Form "C" is with them but they haven't done it yet but instead when I request them for security refund they force me for paying Rs95000/- and threaten me of legal notice.
Can I take any legal tep against the company?

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adv. rajeev ( rajoo ) (Expert) 13 December 2011
Issue legal notice to refund the amount. If no positive response then file a suit for recovery of money.

Advocate. Arunagiri (Expert) 13 December 2011
You can demand them proof for penalty caused by you.

You can give proof for sending the C form in time.

By this you will get a clear picture from the company.

Devajyoti Barman (Expert) 13 December 2011
Tje demand of the company does not seem to have any basis. that money or to initiate legal action.
Send a legal notice to it. If it does not comply then you have no option but either to forget

Shailesh Kr. Shah (Expert) 13 December 2011
send legal notice for claim of your money and also send reply of their demand that you have done within time. It would be better for this take services of advocate.

prabhakar singh (Expert) 13 December 2011
Yes!You should reply there notice categorically denying their allegations made against you and also demanding your security deposit and other credits.

In case they do not pay then you have right to sue them but they too have right to sue you.Hence a suit and counter claim is the possibility depending upon who moves first.
All depends upon who is at fault with regard
to C form and in case they get it realized back through appeal then even if you were at wrong they would be able to claim only litigation expenditure only.

Raj Kumar Makkad (Expert) 13 December 2011
File a suit for rendition of accounts and reconcile each and every matter before court of law and truth shall prevail therein.