New LIVE Course: Learn the Practical Nuances of IPR Drafting by Adv. Gautam Matani. Register Now!
LCI Learning

Share on Facebook

Share on Twitter

Share on LinkedIn

Share on Email

Share More

padmanabha guptha (owner)     23 October 2013

New distributor appointed without noc and pending claims

I was a distributor to an FMCG company for the past twenty years. The company was pronouncing scheme to retail outlets. Generally, one of the company items used as scheme to sell other product. Hence, scheme items delivered to retail outlet out of reserved stocks with me. So spent scheme items use to be claimed from the company afterwards. Earlier, such claims use to be cleared within two months.

  But, past two and half years claims worth of Rs.100000.00 have been cleared recently as I persued  continuosly. The abnormal delay was due to lapses on company side.

   Apart form that, stocks though not requested use to be dumped taking the advantage of DD sent though the filed staff have failed to market the same.  All this happened as new ASM has reported.

   In view of this, my money was blocked on pending stocks and claims.  As I could not arrange the funds for running the business, I stopped sending DD requesting the company ASM to clear the stocks pending with me and claims pending with company expressing intention to close distribution business.  Also I have requested to arrange compensation for the business/interest loss incurred due to company mistake. 

   The ASM and SO have assured me to clear pending claims and pending stocks but refused to arrange the compensation stating,  hithertoo such compensation not arranged to any body. Also, they have assured me, they will not appoint any distributor till stocks with me  will be cleared.

    But,  they have appointed new distributor and restored sales without obtaining NOC from me. Afterward, they have transferred  pending stocks after a lapse of four months to near by distributor on credit basis. As of now, about Rs 35000.00 cash and claims worth of RS.14000.00 are pending with company.

  They are demanding me to give resignation letter stating full and final settlement  to release the pending cash with them. As, I have protested , the ASM has started telling, pending claims worth of Rs.9000.00 has not been cleared though he has sent Email to me  stating  cleared.

    Infact, I have expressed my intention of appealing to appropriate forum for the compensation towards the business/interest  loss caused due to company lapses. Before this, I wanted to recover accumulated cash after pending claims cleared. If I go to court of law now itself, they withheld cash and refuse to clear pending claims stating matter is in court of law.

   They should have issued termination notice with DD for the cash in credit. They should have not appointed new distributor without obtaining NOC from me.  For, everything they simply keep quite without responding.

  I am of the openion, they are cheating me. They should not hold my cash and legitimate claims. The ASM expressed, he is not bothered about rules and regulation. He works under the pretext, in India  obtaing justice takes much time and nobody cares about this within the company. I have posted about this in company feed back also, but I have not received any response. Also, I have requested in my letter to ASM to inform whom to be approached above him seeking justice as nothing is available in company web site. But, he is refused to inform anything. I am of the openion, he has failed to work as per the priciples/business ethics  mentioned in company website. Hence, I prefer to sue him than company  fixing juridiction as my native place. 

I request the concerned to guide in the matter.


 0 Replies

Leave a reply

Your are not logged in . Please login to post replies

Click here to Login / Register