Please reply very important
This query is : Resolved
07 March 2017
My mama g and his other two partners had taken an agency from principal agency dealer of TVS company.
They brought RS.10 lakh each has capital.
they sold TVS products as well as also do draw business for TVS products.
Agency earned a lot of profit. and the principal agency owner took back business as it started earning profit and give bribe to heads.
they don't give the money back moreover demand 14 lakh each on plea that because of draw system money is pending from customers.
Please help.
As it is ingenuine what can we do?
07 March 2017
please reply krdo!
10 August 2024
In your situation, where your relatives (mama and partners) are facing issues with a principal agency dealer after having invested substantial capital and being required to pay an additional amount despite their legitimate claim, here are steps they can take:
### **1. Review Agreements and Contracts**
**a. Agency Agreement:**
- **Review Terms:** Check the original agency agreement or contract with TVS. This document should outline the terms of the agency, including how disputes, capital investments, and financial obligations are handled.
- **Termination Clauses:** Look for clauses related to the termination of the agreement and the settlement of accounts.
**b. Capital Investment:**
- **Initial Investment:** Verify the terms related to the initial capital investment and its return, if applicable.
- **Profit Sharing:** Confirm the agreement on profit sharing and how profits were to be distributed.
### **2. Document the Issue**
**a. Financial Records:**
- **Documentation:** Gather all financial records related to the agency business, including profit statements, capital contributions, and any communication regarding the outstanding money or debts.
- **Pending Payments:** Document the pending amounts from customers, if applicable, and any communications regarding these payments.
**b. Communication Records:**
- **Correspondence:** Keep records of all communications with the principal agency dealer, including emails, letters, and meeting notes, especially those concerning the demand for additional money and the return of the capital.
### **3. Legal Steps and Dispute Resolution**
**a. Consult a Lawyer:**
- **Legal Advice:** Seek advice from a lawyer who specializes in commercial or agency law. They can provide guidance on the legal validity of the claims made by the principal agency dealer and suggest appropriate actions.
**b. Dispute Resolution:**
- **Negotiation:** Attempt to resolve the dispute through negotiation or mediation, if possible. A formal discussion or mediation might help in reaching an amicable solution.
- **Legal Action:** If negotiation fails, consider legal action. This may involve filing a suit for breach of contract or seeking legal redress for the return of the capital investment and resolving any financial disputes.
### **4. Financial Audit and Investigation**
**a. Conduct an Audit:**
- **Audit:** Consider conducting an independent audit of the business transactions and financial records to assess the validity of the claims made by the principal agency dealer and to ensure transparency.
**b. Investigate Allegations:**
- **Bribe and Misconduct:** If there are allegations of bribery or unethical behavior, these should be investigated thoroughly. Legal advice is crucial in handling such allegations.
### **5. Contact TVS Company**
**a. Escalate the Issue:**
- **Corporate Office:** Contact the corporate office of TVS to escalate the issue. Explain the situation and seek their intervention, especially if there are ethical concerns or breaches of standard practices by the principal agency dealer.
**b. Seek Assistance:**
- **Support:** Request assistance from TVS in resolving the dispute, especially if it affects their reputation and business relationships.
### **6. Protect Future Business Interests**
**a. Preventative Measures:**
- **Contracts:** Ensure that future agreements have clear terms regarding investments, profit sharing, and dispute resolution.
- **Due Diligence:** Conduct due diligence before entering into agency or business partnerships to avoid similar issues.
### **Summary**
To address the situation, your relatives should start by reviewing their agreements and financial records, documenting all relevant details, and seeking legal advice. They should consider dispute resolution options and potentially escalate the issue to TVS or take legal action if necessary. Ensuring proper documentation and legal support is crucial in resolving such disputes effectively.
### **1. Review Agreements and Contracts**
**a. Agency Agreement:**
- **Review Terms:** Check the original agency agreement or contract with TVS. This document should outline the terms of the agency, including how disputes, capital investments, and financial obligations are handled.
- **Termination Clauses:** Look for clauses related to the termination of the agreement and the settlement of accounts.
**b. Capital Investment:**
- **Initial Investment:** Verify the terms related to the initial capital investment and its return, if applicable.
- **Profit Sharing:** Confirm the agreement on profit sharing and how profits were to be distributed.
### **2. Document the Issue**
**a. Financial Records:**
- **Documentation:** Gather all financial records related to the agency business, including profit statements, capital contributions, and any communication regarding the outstanding money or debts.
- **Pending Payments:** Document the pending amounts from customers, if applicable, and any communications regarding these payments.
**b. Communication Records:**
- **Correspondence:** Keep records of all communications with the principal agency dealer, including emails, letters, and meeting notes, especially those concerning the demand for additional money and the return of the capital.
### **3. Legal Steps and Dispute Resolution**
**a. Consult a Lawyer:**
- **Legal Advice:** Seek advice from a lawyer who specializes in commercial or agency law. They can provide guidance on the legal validity of the claims made by the principal agency dealer and suggest appropriate actions.
**b. Dispute Resolution:**
- **Negotiation:** Attempt to resolve the dispute through negotiation or mediation, if possible. A formal discussion or mediation might help in reaching an amicable solution.
- **Legal Action:** If negotiation fails, consider legal action. This may involve filing a suit for breach of contract or seeking legal redress for the return of the capital investment and resolving any financial disputes.
### **4. Financial Audit and Investigation**
**a. Conduct an Audit:**
- **Audit:** Consider conducting an independent audit of the business transactions and financial records to assess the validity of the claims made by the principal agency dealer and to ensure transparency.
**b. Investigate Allegations:**
- **Bribe and Misconduct:** If there are allegations of bribery or unethical behavior, these should be investigated thoroughly. Legal advice is crucial in handling such allegations.
### **5. Contact TVS Company**
**a. Escalate the Issue:**
- **Corporate Office:** Contact the corporate office of TVS to escalate the issue. Explain the situation and seek their intervention, especially if there are ethical concerns or breaches of standard practices by the principal agency dealer.
**b. Seek Assistance:**
- **Support:** Request assistance from TVS in resolving the dispute, especially if it affects their reputation and business relationships.
### **6. Protect Future Business Interests**
**a. Preventative Measures:**
- **Contracts:** Ensure that future agreements have clear terms regarding investments, profit sharing, and dispute resolution.
- **Due Diligence:** Conduct due diligence before entering into agency or business partnerships to avoid similar issues.
### **Summary**
To address the situation, your relatives should start by reviewing their agreements and financial records, documenting all relevant details, and seeking legal advice. They should consider dispute resolution options and potentially escalate the issue to TVS or take legal action if necessary. Ensuring proper documentation and legal support is crucial in resolving such disputes effectively.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- ITR -1 Filing
- TWO FIRM NAME IN ONE GST NUMBER
- Transportation of Petrol, Diesel by GTA and Other than GTA
- Section 54 f disallowed will be taxed at what rate
- Share in property
- Long term capital gain exemption on sale of mutual funds
- Trust 10AB form required for old asst. years?
- Transfer of rectification rights to ao
- TDS whether applicable or not in case of Flat purchase
- SEA GOING ALLOWANCE
- Other party gstin shown on my login id
- Accumulated surplus exceeding 15%
- Different GST Number MEESHO
- Query on TDS Section 194H
- Fees amount transfer procedure for two doctors
- Notice u/s 148 of IT Act
- Gst1A within time, will the customer get corrected ITC set off?
- Credit note for cycle round
- Does Sharing a common place of work against rent comes under Related party Transactions
- FEMA MONEY REPARTIATE
Trending Online Classes
CAclubindia
