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Business Problem.

Hello I started my business which is a manufacturing unit at 14th Feb 2020. It is registered in my name because my partner didn't wanted to make a partnership contract and actually kind of enforced to put the unit as sole proprietorship under my name.
I made the total Investment of rupee amounting to 1,41,000. The first 50 thousand I gave it to my partner under two instalments amounting to part as 5000 and 45000 at date 5th Jan 2020 and 7th Jan 2020. I have the google pay proof of 45000 but not the 5 thousand I gave in cash.
This money was given to him to buy raw materials and start a small business without a manufacturing unit and produce the product at his friend unit which he suggested. Later he put his hands up and demanded that we must acquire a unit of our own and its not possible to work at someone's else's unit. So I again arranged the amount of deposit and cost of setting up the unit. And established my unit at 14th Feb 2020.
From the initial Investment of 50000 that we gave to him he brought one cutting table which he said amounts to 20000 which I refused to buy as it was a used product and wasn't that good in a condition and 10000 he told that is used for tailoring machinery, he never brought the machines.
Even after opening the unit he demanded more money to put into machinery, which made me and my family hesitant, because we actually decided to start very small and he kept on demanding more and more money and not doing any sort of work. Later I found out that he hasn't paid the money for the table and even the machinery and the 20000 that he used to produce the products, some 10000 worth of product is missing. Or misplaced.

Our partnership came to a end on 16th march 2020, earlier that week I started asking him questions about the money about my table and machinery to Which he didn't do any justification and just laughed blatantly at my face. I was really unsure what to do. He stopped coming to the unit and also stopped responding to the call of me and my father. This happened in the first and second week of march. And on 16th he walked in and we decided to terminate the partnership. Mind you our partnership was never registered on paper but it was mutually decided. Also it was decided that 33% of profit and loss will be shared by my the partner and my masi (invester). I and my masi have no knowledge of this field and only my partner has knowledge of this field so we decided to share the partnership at 33% each. Soon after the lockdown begun, my unit is located in Dharavi, Mumbai which is one of the worst hit region. And I stated at Gtb nagar, so there was no way to travel there as the lockdown was in effect. Now its 14th may 2020, my landlord is charging me rent during the total Duration of lockdown and its I think stupid to continue any further because of the labour situation in mumbai. I would only be reoccurring more losses.

Now when he decided to spend the 30000 rupees for his private expenses from the company he didn't expect us to find that out. Somehow we did. The other 10000 is misplaced items. He stated the product to be worth of some X value when I crosschecked it and examined I found items of 10000 to be misplaced.

The money I invested was lended by me at 3% interest.
I total lended 141000 during our partnership to which 40000 is not used by him to fulfil his personal expenses. He did not ask us to use that amount, he robbed it directly from the company hoping it to not be found by us.

Now am at the verge of shutting my unit down because the rent is being charged and no work is done for income to be generated.

I called and asked him about the money which are as follow:-
33% of profit and loss would be shared by us till 16th march 2020.
The 3% interest on 40000 from 5 January to May(monthly) which is fair because I paying 3% interest on the amount that I borrowed
And my 40000 to be returned which he burrowed from the company.
He blatantly refused. He was not even on talking terms with me and spoke to me in a very rude and harsh manner I recorded the entire call and he cut it as soon as spoke these terms..
I believe I am not asking anything unfiar. I am not even asking any compensation from him. Just my money which he stole, the interest on them and his part of share in profit and loss till the Culmination of partnership.
Please help. What should I do here? How do I lodge a proper complain and is it possible to sue him when partnership is not written in papers. Please help.. 🙏


Learning

 2 Replies

Hemant Agarwal (ha21@rediffmail.com Mumbai : 9820174108)     14 May 2020

1. In your described circumstances, you have been swindled and you have literally no legal option, to recover your money and neither you have any agreement or other documentations.

2. Even IF you civil court case on him, it is gong to take years and lots of money and hence not worth it.

3. You could try to lodge Police FIR for Fraud, Cheating, Mischief, Breach of Trust, Intimidation etc.... and see whether he comes down for settlement.

Keep Smiling .... Hemant Agarwal
VISIT: www.chshelpforum.com

Jatin sharma (RedBrick Poem)   14 May 2020

Thank you for the reply @hemant agarwal. Its kind of fascinating that you understood that I have been swindled but am helpless by law... I have a phone call recording where he accepts that he took the money. Also have a screenshot of google pay where the amount mentioned as 'Investment' has been transferred to him. I have rent agreement of the place and also registered my firm under msme.

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