Received a blank check against payment in security
Querist :
Anonymous
(Querist) 26 December 2023
This query is : Resolved
Dear Sir,
Here are the facts of my case...
1. Met an associate to discuss on film making In august 2021, started working in office since 19 dec 2021.
2. The agreed terms were as follows:
• I asked for a basic pay that was denied, i was told all expenses will be paid(fooding and accommodation, travel and other necessary)
• It was agreed that i will be joining as a partner in profits, no capital investment on my part all the investment and expenses were to be paid by other part.
• An agreement was made(MOU) stating that i will be appointed as the ceo for the company. That to protect my interests on the agreement binding a duly signed blank cheque was provided to me.
• Under this agreemnt if the company fails to keep their promises as discussed in agreement or fail to proceed with project due to any condition i am liable to use the blank cheque as in payments .
• The MOU duly signed in hard copy on company letterhead. And a xerox was provided to me with the blank cheque in original.
• Now, as of today the company seems to be playing a con on me... lingering the process and project. It seems in future it will shut down the project. Film making is a very difficult task, millions of people start with it and only a few 100 get the exit.
• Now after 2 years of efforts and time given in I am left with nothing. The company(the director) may have used my name and position to get favors and funding with might have been used in real estate(can't be sure).. but yes enjoyed the perks.
• Now I have the xerox of the agreemnt and the blank cheque, what shall i do and how do I deal with this situation.
• I have ingnored all the red flags about this party only in lieu of trust to get this project done. Now as i can see it very clearly things are not going to work out. He is a cheat. Also he is a man of resources, and he won't be paying me anything anymore. Please advise how shall i proceed.
kavksatyanarayana
(Expert) 26 December 2023
Is the company registered? How many directors are there in the company and did all directors/authorised persons sign the agreement of MOU appointing you as CEO? If the company gave you a blank check, why did you not encash the amount due to you? Show the agreement copy and company bylaws to a senior advocate for proper advice as without verifying all the papers cannot form an opinion.
Querist :
Anonymous
(Querist) 26 December 2023
The company is registerd.. two directors both are brothers. With one having signing authority of the other.. appointment of ceo was done by resolution.. i have not used the cheque because the agreemnet hasnt been made void yet.. it is an open end agreemnet.. typically one sided.. so untill the project is on there is no dispute.. once it is closed then i am liable to present the cheque
kavksatyanarayana
(Expert) 26 December 2023
You request them to cancel the agreement and amicably settle for the amount for your work.
T. Kalaiselvan, Advocate
(Expert) 27 December 2023
You issue a legal notice to the company demanding the amount they are due to you after which you can fill up the blank cheque for the dues sought and present it for payment, if it is dishonored you can initiate cheque bounce case.
