Recovery of Money

I have given money for starting a play school to a franchise in Delhi and the owner told that within 14 days of signing the Agreement, Playschool will start. I paid the amount in the month of Feb. but the owner of the company had not started the play... Read More

I have given money for starting a play school to a franchise in Delhi and the owner told that within 14 days of signing the Agreement, Playschool will start. I paid the amount in the month of Feb. but the owner of the company had not started the play school. From his previous employee, I came to know that he had even fooled some other person too by taking the money and giving big promises but did not start the school. And when that person asked his money back, the franchise owner even threatened him and said money can't be returned. Now I am very much stressed and wanted to back out. I want him to return my money and not to continue further. Can you please advice what steps should I take and how can I use legal steps in this situation?
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Answers (3)

Team Legistify

Team Legistify

  • Sector-1, Noida

You can consult a debt recovery lawyer and file a recovery suit against the person. A recovery suit can be filed in form of a summary suit under Order 37 of the CPC. 

Get connected to the best debt recovery civil lawyers in India with Legistify. Call us at 011-33138123 or send us an email at [email protected] to get started.

Answered on 28 Sep 2018


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Advocate Anuj Nair | Legistify

Advocate Anuj Nair

  • Greater Kailash 1, Delhi
  • Delhi

Now there are a few considerations that we have to look into

  1. What was the total sum amount that you have provided them?
  2. Whether this transaction is recorded through your bank statements, receipt payments, WhatsApp conversations, admissions made by the parties to the same. Essentially we need to look at the evidence you possess to make a fair assessment. If it is clear cut, then we can approach the methods mentioned below.
  3. Where did the cause of action take place, as that will determine the Jurisdiction of the Court and where your case can be filed.

On how to proceed with the case:

  1. You may file a criminal action against the party for cheating under Section 420 if the Indian Penal Code. However, this would require you to formally make a complaint before a police station whilst you're in India. If the amount is not large, I've seen people instituting this just to teach the perpetrators a lesson. 
  2. You may also institute a suit for recovery for the entire amount along with interest till the date of payment. The general timeline is about 7-8 months.
  3. You may immediately proceed to file a case under summary suits which would be preferred. The Court mandates that when the evidence is clear and uncontested and the Defendant is unable to come up with cogent evidence which raises a triable issue, without going into evidence and cross-examinations ( which could take years ) the Court will issue an order and direct the Defendant to make the payments immediately. (Generally, this action takes about 6-7 months).

 

Answered on 28 Sep 2018


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You can do three things:

First, you can send a legal notice making clear your intentions and claim for damages.

Second, you can claim that the person is a habitual cheater and cheated many others and file a criminal complaint with police.

Third, you can file a civil case seeking recovery and specific performance seeking money and getting your contract enforced.

Answered on 23 Jul 2019


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