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Er Paras Thamman   08 June 2020

Agrrement Violation and Intimidation

Dear Experts,
I have a query related to a partnership business which has an notarised agreement of 5 years with 1st party being owner of land and 2nd party constructed some structures with their innovation and business ran successful in first half year however now the property owner is intimidating and has registered a fake complaint of theft in polica station so as to dissolve the agreement and start running business by himself. He couldn't find other reason to get into a fight so he is opting false allegations so as to run into legal procedure and continuously intimidating due to his good relations with government authorities. Please assist


Learning

 4 Replies

Nihal Thareja   08 June 2020

Hi sir,

The first thing that is to be considered is whether the 1st party being the landlord, has breached any terms of the agreement with respect to the scope of partnership or under the course of dealings that had been entered between the parties.

The following clauses which must be present in your agreement would help you:-

  1. Resolution of Dispute - This clause applies in case of breach of terms of the contract in order to provide for settlement of dispute which has been pre-determined between the parties.
  2. Damages – This clause sets out the setting up lump sum amount payable in case of breach of the agreement terms.
  3.  Jurisdiction – This clause sets out the jurisdiction of the courts applicable In order to seek and file for the legal remedy when there is a breach by either party.

The difference between a breach of agreement and cheating by either party is based on the nature of liability. Incase of breach, civil liability is attracted whereas in case of cheating criminal proceedings take place.

Mere breach of contract cannot give rise to criminal proceedings for cheating unless fraudulent and dishonest intention is shown at the beginning of the transaction.

The agreement would not dissolve on its own as the allegation of theft has to be proved first and for that, the police will look into the matter to come to a conclsuion and when it is done, you can file against the other party for breach of contract as a civil remedy.

 

Hope i was able to solve your query.

Regards
Nihal Thareja

SHIRISH PAWAR, 7738990900 (Advocate)     08 June 2020

Hello,

Try to resolve amicably. Notarised agreement will have less evidentiary value. 

Er Paras Thamman   08 June 2020

Yes, the complaint is merely for lights which are bought in partnership @5200 inr and 40% is of 1st party and 60% 2nd party. Ideally these were taken to prevent damage however party 1 misused the intention and made a false allegations of theft which is just 2000 inr of his share..

P. Venu (Advocate)     08 June 2020

What is the status of the complaint? Who is the accused?


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