Legal notice for recovery of payment

Rajat sahotra (Querist) 11 April 2011 This query is : Resolved
CMD of a company entered into an third party manufacturing contract. in agreement it is mentioned M/s???????? and its sister concerns named M/s ??????? and M/s???????.

Material supplies/ Payments were on credit basis.

Defaulted in payment.

Now if the notice for recovery of payment will be to only main company or to the sister concern also be given?

Please advise seniors

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Heaven 2011 (Expert) 11 April 2011
The terms and conditions of the contract is limited only to the contractor and the contractee. Your question is not clear. Any way you may send the notice to the opposite party to the agreement (main company) and a cc may be made to the other one.

Rajat sahotra (Querist) 11 April 2011
The exact words of Contract are:-

Mr...(CMD) M/s Raj Pharma(1) and its sister concerns named M/s aarti pharma and M/s aabharan a company incorporated under companies act 1956 having its registered office at??????????? hereinafter the called the M/s Raj Pharma(1)(hereinafter referred to as SECOND PARTY COMPANY.

ACCOUNT STATEMENT SHOWS ONLY M/s Raj Pharma(1).

NOW NOTICE TO OTHER TWO WILL ALSO BE GIVEN OR ITS OK TO GIVE NOTICE ONLY TO M/s Raj Pharma(1).

pLEASE ADVISE SIR!

Anil Kumar-Advocate (Expert) 12 April 2011
Dear Rajat,

The information furnished is incomplete. It would be advisable to upload the agreement paper.On perusal of the same the notice should be drafted in such manner that it may be persued before the court of law for liquidation and winding. Before that your loss due to non payment must be substantiated by a professiona accountant approved under the Chartered Accountants Act 1949.All the three companies will surrender before you or you can ask the bill amount and the loss amount plus other charges as well.But before that your agreement paper, your financial status i.e.statement of accounts and other details are required to be examined.

Thanks!
Anil Kumar-Adv.

M V Gupta (Expert) 12 April 2011
The Description of the Second party in the document is not done properly. It appears that the Second party is M/S. Raj Paharma(1) and the mention of the sister concerns appears to indicate that the CMD is common to all the companies. The confusion can be resolved by looking at the Signature clause at the End of the Document. If the CMD has signed the contract only as CMD of Raj Pharma(1) and not on behalf of the other companies, the contract would be deemed to be with Raj Pharma only. U have also stated that the account statement is made only in the name of Raj Pharma. Therefore ur notice should be addressed to Raj Pharma (1).