Hello Experts
My friend was running an business for over 2 years. I wanted to join him as a Partner. So, as a first step, we signed an Basic Understanding Agreement (BuA) on Feb 2013 on Rs.100/- stamp paper. I even notorious it but did not Register the document.
I invested Rs.2 lacks. We even decided that, this BuA will become the basis for MoU to be signed in future date. Per this agreement, both the parties had an OPTION to back-off from this arrangement on or before 15th June 2013 with out any question. And also, this agreement has a clause where it says that I have made this decision to join the business on my own risk.
The idea was, I shall quit my Part-Time employment, join his business and then I was given SPECIFIC responsibility to generate revenue to business.
However, from Feb 2013 I did not participate in business, I did not perform any of the specific responsibilities given to me and I did not contribute to business or to the revenue etc.
After 3 months of signing the BuA i.e. May 2013, I decided to take up an an Overseas Employment. Informed my friend just 2/3 days before my departure. He was very upset, but I continued with my employment.
One Year later i.e. February 2014, I came back to India on vacation and met my friend w.r.t Business. He informed me all that has happened between May 2013 and February 2014 (in writing) how he underwent huge business losses.
My friend also informed me that, there was a need to infuse additional Rs. 15 lacks in to business to ensure continuity and I should actively participate at least from now onwards. He proposed that I pay off 50% of Rs. 15 lacks. I refused to pay additional funds into business and I refused to quit my Overseas Employment even as my friend told me that, if we do not infuse the required funds Rs.15 Lacks, then the business has to be closed down.
I did not provide additional funds. I again went back on my Overseas Employment. Some time in March/April 2014, he informed me that due to heavy losses accumulated in Y 2013 and also, due to shortage of funds, he closed down the business.
I came back to India in December 2014. I know he has closed down business in April 2014. Now I asked my friend to RETURN my investment. He is telling me that there are accumulated LOSSES and I need to share 50% losses. He is further refusing to give back my investment.
My friend is telling me that I have failed and defaulted to fulfill the role, responsibility, investment and also, failed to addressing business exigencies and also, If I wanted my investment money back, I should have told him the same on or before 15th June 2013 in writing.
My friend says, he can neither pay 18% interest as this was not the understanding per BuA and can’t refund the money back as business underwent loss and is closed now.
WHAT ARE THE KIND OF LEGAL OPTIONS I HAVE.
CAN I RECOVER THIS MONEY FROM HIM.
Please ADVISE.
