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Company refusing to pay refundable security deposit


05-Feb-2023 (In Recovery Law)

I have an agreement with company , a electricals and electronics products manufacturer and supplier company of delhi. i give him security deposit of rs 20 lakh and he assured 25% minimum guarantee of security deposit annually through franchise agreement. but after one year it refusing to pay minimum guarantee and security deposit. i also give him a notice through lawyer but there is no response. I am from rajasthan and according to agreement jurisdiction is delhi. what can i do now to avoid case filing in delhi and how can i get my security deposit.

Answers (3)

Answer #1
999 votes
Pl share the agreement then only precise advice can be given. It depends on the clause in the said agreement. Normally there is arbitration clause in the agreement and if so then the jurisdiction of civil court is barred.
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Advocate Rajesh Rai

Adv. Rajesh Rai

LawRato Delhi | 5+ Answers
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Answer #2
773 votes
This is a classic case of cheating. Several entities have been using this modus operandi in the past. The following are the remedies - 1. Winding up Petition in case the company meets the relevant criteria 2. Criminal Complaint against the company and its directors 3. Civil suit for recovery / arbitration proceedings in case the agreement has an arbitration clause. I am presently advising on a similar issue with regard to another company.
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Advocate Shohit Chaudhry

Adv. Shohit Chaudhry

LawRatoDelhi | 25+ Answers
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Answer #3
712 votes
You can file a suit for recovery and damages against the company. But you have to go with the agreement and only the courts in delhi will have the jurisdiction to adjudicate the case . In Delhi , there is a process of pre-litigation mediation. You can come to Delhi and ask for pre litigation mediation. In the same ,the other party will b e called and ask as to what is the dispute about and the mediator will try to resolve the issue out of court. If not solved in mediation, you have no option but to file a case against them. But to confirm this advice, perusal of the agreement between both the parties are required. only after going through the agreement, I can advise you better. Thanks
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Advocate Bhanita Patowary

Adv. Bhanita Patowary

LawRatoDelhi | 25+ Answers
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