'A' owns a manufacturing firm M/s XYZ. 'A' gave its plant & machinery on lease to 'B' but retained all the licences required for running the manufacturing firm in his favor. Now 'B' is running the plant but since name of the company is M/s XYZ, receipt of all the sales of the company is going in the account of M/s XYZ which is owned by 'A' and 'A' is not giving back the amount so received to 'B'. What can be done in such situation ?
The terms are not clear: you have taken plant and machinery on lease or the business of the firm?
Unless you rectify the basic fault, nothing can get solved, unless of course, the mentality of the owner gets changed.
Plant & machinery and lease to run the business in the scheduled property for 3 years
You should obtain factory license in your name, and thus open current account being you as new proprietor, so that the amount gets deposited in your account.
I have obtained factory licence in my name and currently running business in my name only. But one licence which is mandatorily required to run the factory is still in his name. Now, owner is going to that govt. dept. (which is responsible for issuing that licence) and making complaints against me.
Formost thing to sort out is your relation with the owner, so that any more complication may not arise in future, and the financial issue can get settled.
As far as future payments are concern, based on your registration with any governmental agency and lease agreement, you can open a current account with any bank, and get cheques deposited in your own acc.
Naveen Fintech Pvt Ltd
Kolkata
CA Inter
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