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Chetan (Advocate)     31 December 2008

HUF

In the present case

There were two brothers (Share Brokers) performing seperate business on different cities. One brother did not pay the dividents, bonus and share amount to his customer. The customers send Legal notice  to both brother as well as filed Criminal Complaint against the another brother.

My query is that whether the another brother is liable to pay due amount for his brothers customer ?



Learning

 4 Replies

RAKHI BUDHIRAJA ADVOCATE (LAWYER AT BUDHIRAJA & ASSOCIATES SUPREME COURT OF INDIA)     01 January 2009

Ur querry is not complete. Plz tell whether, their business, in documents, is separate or common? If it is separate then there is no problem & is if it is common, then the brother is liable to pay.

AEJAZ AHMED (Legal Consultant/Lawyer)     01 January 2009

Yes dear Chetan,


Rakhi is exactly correct,  may both the brothers are performing the business separately, but if the same is  Common/Joint  business of them, then they both are liable for their defaualt in eyes of law. 


Secondly, if the business of both the brothers is not a Jointly/Common business, then they are is not liable and responsible for the default/cheating/misappropriation of other one.


So, if there is a CRIMINAL COMPLAINT filed by their Customer, then one of the Brother, who is not liable for the fraud of other one can file a " Revision/Quash Petition of FIR/CRIMINAL COMPLAINT " U/s. 482 of Cr.P.C.,  before the State High Court and get favourable order.

J.L.Naagar (n/a)     01 January 2009

Dear friend,


If both the brothers are doing their business absolutely separately like a proprietor, the the position is different as both are liable only for their own personal conduct.  But if the business is common only the cities for operation are different only for their own convenience then both are liable for the liability.


J.L. Naagar, Advocate,


Jalandhar City.

Y V Vishweshwar Rao (Advocate )     02 April 2009

I agree with my lrd friends and further add that ;-111


the othe brother  / person involvment in the transaction is not mentioned  clearly , if there is no invovlment of the other brother / person ,                              he has  no connection with the transac tion &  not liable fo the alleged claim of the customer adn not  liability


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