Whether franchiser Could be held liable under DMC, Act.
Prashant Sharma
(Querist) 10 September 2009
This query is : Resolved
Whether the franchiser could be saddled with the liability to pay the penal charges in turn of violations committed by the franchisee under section 417 of the Delhi Municipal corporation Act. However it has been made clear in the franchise agreement that franchisee shall be make arrangement to comply with the municipal laws and shall be liable in whole for such breach of municipal bye laws.
Site any judgment or precedent which propounds that only the franchisee shall be held liable in such violations of municipal laws.
Thanks for putting a glance over my query.
With regards,
Prashant Sharmariven
Kiran Kumar
(Expert) 10 September 2009
i think Franchiser can not held liable reason being in this context, franchisee can not be held agent of franchiser....the property belongs to franchisee and as per contract as well he is supposed to comply with all the municipal laws.
franchiser has just given his name for a specified purpose and beyond that franchiser has nothing to do with the property of the franchisee.riven
