I am a travel agent. One of my client had given me an amount of 120000 for a holiday trip... As agent I had tied up with different agent and paid him, unfortunately the trip go t cancelled.. And the person whom I had given money is absconding.. My client has collected the 4 blank cheques and bounced two cheques of 120000 each, it's 4 months now and now my client had booked a police officer and telling to clear up right now or will file a FIR of cheque bounce case against me. as enquird the person has has given complaint under 420 case... Can someone tell me the procedure I should follow..
Just think what you will be doing, when you are in the same position of your client. The client believed you and with trust he has paid that amount. It is your duty to have such bonafide contacts and should not let down those clients that approach you, with trust on your abilities. If you want your image, reputation somehow pay the amount to your client without attracting adverse publicity and make your attempts for recovery from the concerned.
Firstly save yourself from FIR under section 138 NI Act and section 420 IPC, so pay the client his money from your pocket.
Next try to track the person whom you paid the money and get it back from him, if not possible then better mark this transaction as bad debts in your business financial record.