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Amith K (NA)     22 January 2015

Forged signature on the agreement - notice by opposite party

Hi,

One of my clients newly acquired a construction company (hereinafter 'B'). The 'B' company had a development agreement with another company (hereinafter 'A'). After aquiring the 'B' company my client asked the previous owner to make new agreement and supplemental lease with the 'A' company. The previous owner agreed to it and prepared the documents and asked my client to sign it. My client send its representative to sign it in Hyderabad. When the representative reached the office of previous owner he said that the director of 'A' company just left as he was in hurry, he has signed the document and you can sign it too. Trusting him the representative signed the document, the previous owner signed the as witness. The document was to be notarised and the notary was not available. As the representative had to catch his flight for return journey., he was told that the document will be notarised and send to the office. The document was then notarised and send to my client's office. After few months when my client approached the directors of 'A' company with the document, we came to know that the signature of director of 'A' company was forged by the previous owner. The 'A' company has issued a notice to my client 'B' company for forgery of signature and why the agreement should not be terminated.

I would like to know, what reply should be given in this case. Is there any legal remedy for it apart from filing police complaint. My client does not wish to involve police in this business transaction.

Please suggest remedies and laws that will be applicable in this case



Learning

 1 Replies

Jayashree Hariharan (Advocate)     22 January 2015

Your reply to the legal notice can only be that the signature is not forged, and is valid. In case they file a case, then you can challenge it at court and ask them to prove it. They will have to prove it, since burden of proof rests on them.


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