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VIJAYNARAYAN (FREELANCE EDU CONSULTANT)     03 August 2010

COMPENSATION ON TERMINATION

COMPENSATION ON TERMINATION

company  A terminates the agreement / contract with company B by serving proper notice. However company A does not provide any inputs / volume / qty  to company B to perform the agreed services as per contract during this notice period. In this situation Company B claims avg billing amount of the previous 3 months billing value as a fair compensation 

welcome analysis and comments



Learning

 6 Replies

Raj Kumar Makkad (Adv P & H High Court Chandigarh)     03 August 2010

Petition for rendition of accounts shall be a better opton for company B in the circumstances of the matter. It shall further be better to issue a legal notice to supply the whole desired information by comapany A prior to initiation of further action of recovery.

VIJAYNARAYAN (FREELANCE EDU CONSULTANT)     04 August 2010

Dear Mr.R.K. Makkad

Thanks for the response. From your reply  - since you have suggested to call for / rendition of accounts & also since you have said  that a legal notice notice can be sent -  this translates to - that claim by company B -  of avg bill amount is justified.

I would like comments on my inference

Dharmendra (Tax Accountant)     04 August 2010

Dear Sir,

I think Vijay Narayan g is write

VIJAYNARAYAN (FREELANCE EDU CONSULTANT)     05 August 2010

Dear Shri Makkad & Dharmendra

Thanks for the thread.

It is apparent that I ( company B ) is in this situation. can I have legal references, i.e, case nos / judgement nos etc of any such case from any courts. This will help me in ths discussions with company A next week

 

Bhabani Prasad Pujary (Asst.manager)     08 August 2010

In this case Company B can file a suit under Specific Relief Act praying for injunction against A

VIJAYNARAYAN (FREELANCE EDU CONSULTANT)     09 August 2010

Dear All

I am thankful to all the contributors.It is amply clear that during the period of notice , "volume of work "' can not be denied taking the stand that ,... ' anyway you are under notice period and we dont have any work.' It is also very clear that this is against natural justice & business ethics.

I am specifically looking for any reference suit nos / case nos / judgement nos etc in similar cases

 


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