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Anshum   20 August 2017

Director not returning the money collected for training

Dear All,

In 2015, I was selected by an airline to work for them. Total cost of training was supposedly Rs 37 lakhs. It was discussed with the director of the company that I'll pay 10 lakhs as the first installment. Second installment will be 20 lakhs and the remaining amount will be adjusted in salary. I paid them Rs 10 lakhs in Aug 2015 as the first installment. In Oct 2015, all the trainees received an unfortunate news that the start up has been delayed and that they are trying for FDI. In Feb 2016, we were informed that competitors are a hurdle to their launch and they'll be sorting out the things by Jul-Aug 2016. Thereafter, we were informed that things are on track and we will get the good news by year end. In Jan 2017, the airlines talked about a merger with another airline and gave us a time frame of Apr-May 2017. 

However, like past examples there wasn't any progress on the merger. Thus, In May 2017, I asked for a refund of Rs 10 lakhs. The director acknowledged and asked me four weeks to return the money. Later on he asked for more time. First week of Aug 2017, he communicated that I'll be getting the transfer details within a week's time. However, till date I have not received the money. The company's director has even stopped replying to my queries for the refund.

Please advise the further action to be taken.

Regards



Learning

 19 Replies

Nitish Banka (lawyer)     20 August 2017

You have to file a recovery suit. if there is an agreement then you have to see relevant clauses, a final legal notice is to be sent. make sure suit is filed within limitation and if you have acknoledgement of debt then that can be used

Adv. Nitish Banka

9891549997

Founder lexspeak

 

Anshum   20 August 2017

Thanks for the advise. I do have the acknowledgement of the money paid as well as the acknowledgement of the debt. However, there's no legal agreement as such but I do have their offer letter and proposal of payment accepted by the director himself. 


(Guest)

You don't have sufficient proof to establish your claim, ptovided that have been taken as a part of training cost by entering in to a valid agreement. But, you are silent even on the terms of offer letter when the training will start, its cost, mode of deposit by you and scope of refund, if there be any, and whether training actually took place or not and whether training would be imparted after joining the company or they would provide only training for start of individual business.

So, with alround uncertainty, you can't expect to win any case, if you adopt some legal route. Better discuss face to face with director, instead of response to your calls or emails. Record the conversation and if he makes any commitment only thereafter consult some local lawyer to file a suit for recovery. Otherwise, you will always grope in the dark till the decision of the case.

Better discuss, what exact type of evidence you have with you to prove that refund was agreed in any eventuality of not getting operational appointment.

By the way, what kind of airline work you were to start and whether independently or by joining the company, the training cost of which was Rs.37 lakhs?

 

Anshum   20 August 2017

Thanks for the reply. As I have already mentioned, I do have the offer letter. Salient points are as follows:

1) You have been shortlisted and selected as a 'Trainee First Officer". You will be sent in a few days time for Type Rating on Embraer 190.

2) On successful completion of Type Rating training program you will be eligible for a compensation of Rs 90,000/- per month.

3) It is a self sponsored type rating program and the cost will be Rs 37 lakhs.

There's no mention of refund of any kind in the offer letter.

Thereafter, I had made a proposal to the director regarding the payment which was accepted by him through email. Thus, the first installment was deposited through RTGS in the director's bank account. Subsequently when delays started happening, I did not go through with the second installment of Rs 20 Lakhs. As the airlines never started the operations I was not given any training.

In May 2017, I had mailed to the director for the refund giving him a timeline of 15 days to refund the amount. He has acknowledged that the complete amount of Rs 10 lakhs will be refunded. However, after a follow up mail he asked for four weeks time and eventually in first week of Aug, he said that he'll send the transfer details in a weeks time. I have been trying to contact him ever since but no reply.

All the email conversation is available since 2015. Receipt of Rs 10 lakhs deposit from the airlines is available as well.

Please clarify what other things are required.


(Guest)

Very well analysed by Mr. Jigyasu. In fact, your descripttion did not reveal any substantial facts to arrive at some purposeful opinion. Please be clear by providing the wanted information, as pointed out by Mr. Jigyasu.

Legal cases cannot be framed in the air. These must have some solid base to win.

 


(Guest)

Thanks for appreciation Dhingra ji.

 


(Guest)
Originally posted by : Anshum
Thanks for the reply. As I have already mentioned, I do have the offer letter. It contains all the details regarding training. Thereafter, I had made a proposal to the director regarding the payment which was accepted by him through mail. Thus, the first installment was deposited through RTGS in the director's bank account. Subsequently when delays started happening, I did not go through with the second installment of Rs 20 Lakhs. As the airlines never started the operations I was not given any training. In May 2017, I had mailed to the director for the refund giving him a timeline of 15 days to refund the amount. He has acknowledged that the complete amount of Rs 10 lakhs will be refunded. However, after a follow up mail he asked for four weeks time and eventually in first week of Aug, he said that he'll send the transfer details in a weeks time. I have been trying to contact him ever since but no reply. All the email conversation is available since 2015. Receipt of Rs 10 lakhs deposit from the airlines is available as well.

Please clarify what other things are required.

 

Can you attach with your next post a print screen copy of the email in which the Director made commitment to refund the amount?

 

Anshum   20 August 2017

The first mail from the director states the below:

Your email acknowledged and you can communicate to me on +91 xxxx xxxxx"'

And the follow up mail is as below:

"You will receive the complete refund within 4 weeks from now. Please send me your account details at the earliest."

 

Mail contains the airlines signature and company logos as well and the mail is sent from the director's mail ID.


(Guest)
Originally posted by : Anshum
The first mail from the director states the below:

Your email acknowledged and you can communicate to me on +91 xxxx xxxxx"'

And the follow up mail is as below:

"You will receive the complete refund within 4 weeks from now. Please send me your account details at the earliest."

 

Mail contains the airlines signature and company logos as well and the mail is sent from the director's mail ID.

 

Sorry to point out, no clear commitment of the Director about the nature of refund and the amount of refund. Everything seems hazy. Rather, I can guess, if you believe on such type of hazy commitments and not interested in gathering recorded clear commitment on face to face discussion, you cannot be said to be serious to get refund of your money.

BUT, I WONDER, WHY YOU HAVE REFRAINED FROM REPLYING MY QUESTION ABOUT TYPE OF TRAINING WORTH 37 LAKHS AND THE NATURE OF WORK TO BE TAKEN UP BY YOU WITH THE COMPANY! IS THERE ANY SPECIFIC REASON FOR THAT?

 


(Guest)
Originally posted by : JIGYASU

Originally posted by : Anshum

The first mail from the director states the below:
Your email acknowledged and you can communicate to me on +91 xxxx xxxxx"'
And the follow up mail is as below:

"You will receive the complete refund within 4 weeks from now. Please send me your account details at the earliest."

Mail contains the airlines signature and company logos as well and the mail is sent from the director's mail ID.

Sorry to point out, no clear commitment of the Director about the nature of refund and the amount of refund. Everything seems hazy. Rather, I can guess, if you believe on such type of hazy commitments and not interested in gathering recorded clear commitment on face to face discussion, you cannot be said to be serious to get refund of your money.

BUT, I WONDER, WHY YOU HAVE REFRAINED FROM REPLYING MY QUESTION ABOUT TYPE OF TRAINING WORTH 37 LAKHS AND THE NATURE OF WORK TO BE TAKEN UP BY YOU WITH THE COMPANY! IS THERE ANY SPECIFIC REASON FOR THAT?

 

 

Mr. Jigyasu,

It seems to be a hypothetical problem, if the querist has avoided replying your valid question.

Anshum   20 August 2017

The director's reply may be hazy in itself but I think it becomes self explanatory once my email to him is also attached along which clearly mentions the amount of Rs 10 lakh. You may be able to advise better on this one.

The training was for flying an Embraer 190 aeroplane as a pilot. The same was added in the message sent earlier.

The director is abroad right now. However, I am trying to get a face to face meeting with the chairman of the company who has conveyed to other candidates to contact the director for any refund issues. Both of them are hard to reach as they are not attending the calls. I am pursuing the matter with utmost interest and seriousness. I am trying my best to resolve the issue and this is why I need your help too.

Anshum   20 August 2017

Dear Mr. Dhingra, respectfully Sir, I am unsure about how much info can be revealed on a public forum.


(Guest)
Originally posted by : Anshum
The director's reply may be hazy in itself but I think it becomes self explanatory once my email to him is also attached along which clearly mentions the amount of Rs 10 lakh. You may be able to advise better on this one.

The training was for flying an Embraer 190 aeroplane as a pilot. The same was added in the message sent earlier.

The director is abroad right now. However, I am trying to get a face to face meeting with the chairman of the company who has conveyed to other candidates to contact the director for any refund issues. Both of them are hard to reach as they are not attending the calls. I am pursuing the matter with utmost interest and seriousness. I am trying my best to resolve the issue and this is why I need your help too.

 

Can you name the company with which you entered in to the contract with the HQ of the company, and also in which country the Embraer aeroplane was to be made operational?

Anshum   20 August 2017

Sir, the company name is Flyeasy India Pvt Ltd, located at Bangalore. Parent company is ABC Training & Services Pvt Ltd, located at Trivandrum. The operations were planned within India.


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