Advance from customers used for other purposes
This query is : Resolved
26 June 2013
Suppose a Private limited company which is a Trading company has taken certain Amount say Rs 2500000 as advance to supply goods.But it does not supply the goods and ultimately the deal gets cancelled.In the meanwhile company uses that money to trade in goods with other customers.Is there any violation of any law?
If there can be any violation, then by which time it should return the money after cancellation to avoid any violation of law?
If there can be any violation, then by which time it should return the money after cancellation to avoid any violation of law?
27 June 2013
There is No Violation of any law but Violation of Trust. You Shall refund the money upto stipulated date of delivery otherwise customer can file a suit under sec 420 of CrPC or as per your agreement.
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