Labour fraud
Benny
(Querist) 11 December 2014
This query is : Resolved
Sir, I was a small contractor who does maintenance and renovation work of Houses until this incident happened. Recently i got such a call in response to my Quikr web advertisement. When i got the call my workers were not free so i asked this new person to go check out the work and report. he went and gave a false estimate without my knowledge and accepted 50,000 in advance. the owner didn't inform me about it either. after couple of days they entered into an agreement in writing. now the person who accepted the money has failed to work and not returning the money as well. the owner filed a complaint against me. i tried to tell him that i was no way involved in any way and the agreement is between him and the labour but he fails to understand. Please help me solve the problem.
Guest
(Expert) 11 December 2014
Mr. Beeny,
Probably, your query does not mention full facts of the case. You have not mentioned what the new man, as deputed by you, reported back to you after check?
In fact, you can't claim that you were not involved in any way, when you have stated, "when i got the call my workers were not free so I ASKED THIS NEW PERSON TO GO CHECK OUT THE WORK AND REPORT. he went and gave a false estimate."
May that be he would have given estimate without your knowledge, you would definitely have enquired from him about what he checked during the visit. Had he not given any report, you could have checked directly from the caller, what was the outcome of new person's check, what he wanted and how to proceed.
Rajendra K Goyal
(Expert) 11 December 2014
Whether the new person used letterhead / stationery / your name / your firm name in executing agreement / accepting money and giving receipt of it (if any)?
You have the option to file FIR against the said new person or file damages suit against him if he has means to pay.
Second option is to forget him, complete the work and save the image of your concern. take it as business loss and avoid litigation.
ajay sethi
(Expert) 11 December 2014
1) you are not liable .
2) advance of rs 50,000 was taken by said contractor
3) agreement was signed between contractor and the owner
4) if work has not been carried to owner satisfaction then owner has to recover advance paid from said contractor .
5) in your staement to police you should state that since you did not have time nor workers to do work reference was given of said contractor and no agreement was signed with you nor advance paid to you
Kirti Kar Tripathi
(Expert) 14 December 2014
unless any contract entered between the parties concerned, no one can compel a person to execute the contract or pay amount specifically when the person, who taken advance is authorized by the the said party to enter in contract in writing.
Kumar Doab
(Expert) 14 December 2014
Agreed with experts.
Benny
(Querist) 15 December 2014
When i sent this new man to the site i only asked him to do an estimation, He came back saying that he had got the contract. I told him that you are free to do what you please because its not my contract and am not doing it. I also conveyed the same to the Owner. it was only after 3 days that i got the call from the owner stating that the contractor(new man) had taken 10,000 in advance and put a small trolley of sand and couple of bags of cement on the site. I called up the contractor and after several attempts he picked up the call and said that he had spoken to the owner and the owner is not releasing money for the materials as requested by the contractor. I conveyed the same to the owner. After a week again i get a call saying that the owner and the contractor have entered into an agreement and that the owner had paid amount 50,000 to the contractor but after that the contractor is demanding more money as the work has not being done. i said that am not involved in anything. The owner says that since i am the one who sent this person, i will be facing legal consequence.
Guest
(Expert) 15 December 2014
Response to your quikr ad and sending a person for estimation makes you liable for the fulfillment of contract.
