Ingredients of
Manoj Deka
(Querist) 29 September 2013
This query is : Resolved
Respected Expert/ council
I solicit you all to guide us for the below mention case.
We some people entered in to an agreement to carry out contract business in the name of x enterprise. the deed of agreement were registered at registered office but the enterprise did not apply for PAN, VAT, etc. in fact the firm did not apply for any kind of statuary registration. one of partner (Y) was engaged in contract business since many years back. As we were agreed to do business together so some of our partner made investment by supplying materials to Y without any kind of receipt but some worker were witnessed at the time of materials delivered. Mr. Y paid back amount by cheque but those investor are greedy they want equal chair from Y. they never ever informed Mr. Y that they will be equal partner with Y in Y's project while Y refused to give equal chair they lodged a complaint case against Y showing the deed of partnership (of X enterprise) and mentioned some amount stating to have been made expenditure in Y's project in their plea without supporting evidence the X enterprise and the Y are separate entity and unique. those investor has urged the court to charged the matter U/s 409 the investor never ever disclosed any account to Y (but sent messenger to Y's house claiming absurd amount.)
is the case is chargeable U/s 409? Does the facts amount to entrustment of property? please guide
Arvind Singh Chauhan
(Expert) 29 September 2013
As Y is neither a public servant, nor an agent,broker, merchant etc. 409 should not apply on him.
AS he himself is one of the owner of property.Thus as being a owner there is no question of entrustment of property.
Argue that it purely a case of civil nature. If there is any arbitration clause in agreement pray to court to refer it to arbitration.
Rajendra K Goyal
(Expert) 30 September 2013
Contact local lawyer with the copy of said agreement to carry out contract business, the work contract of Y and all other relevant documents.
