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Pankaj (Founder)     05 April 2010

Recovery of Fee

We have a signed engagement contract with a client to syndicate loan funding. When we got the loan sanctioned and disbursed, the client is refusing to pay with an intention to bargain down the fee by as low as 1/3rd of the fee due to us as per signed engagement contract.

This is a total blackmail and unethical as the company is listed on BSE and is trying to exploit a small professional services firm. I would like to know what recourse can we have to recover:

a) Our fee and

b) any legal costs which we'll have to incur to recover it.



Learning

 8 Replies

Gundlapallis (Advocate)     06 April 2010

When everything is patented in the contract you client cannot refuse to pay - Give him a suitable legal notice threatening your claim of heavy damages should he try to litigate the matter.

Pankaj (Founder)     06 April 2010

Thanks for your reply. The contract is well worded but client was very confident that recovery cases do not settle for years and told us the same basis for accepting 1/3rd of our due fee. I have enough evidence in company's correspondence via letters and emails, as recent as just 2 days before getting sanction letter, seeking my assistance in the matter.

What are the chances that I have to wait for years to realize what I have rightfuly earned?

Vinod kashyap (Advocate & Legal advisor)     06 April 2010

dourt decreed with interest on said amount till actual reaization.

Suresh CSLLM (Service)     07 April 2010

you can also claim for cost and expenses for fighting the case.

Rachna (Associate)     08 April 2010

First thing you should do is send a legal notice asking them for the payment. As from their statement it is clear that they r not willing to pay.but for formality sake just send them a notice and if they dont make the payment within 15 days of receipt of the notice file a recovery suit for the payable amount along with the interest on the payable amount at agreed rate from the period the amount was supposed to be paid but stands unpaid.I agree court proceedings take time but whenever it will be finallised you will be getting your amount along with the interest amount.

Rachna (Associate)     08 April 2010

You can ask for the cost of legal proceedings from them in the name of exemplary costs.

JustAdvisor (IT)     25 November 2010

What has happened with you is a clear case of arm twisting and blackmailing. It is the law of the sea that a big fish eats a small fish and that is what is happening. You of course have legal options and may chose to pursue them if you find appropriate.

A similar thing happened to my father some 10 years ago and in fact that was my first exposure to the field of law (although I had never thought that I would be studying law at some point in life). I express solidarity with you.

In my personal opinion, pursue this matter legally only if the amount is substantial, otherwise just forget it and concentrate on your business

Best of Luck

Abhishek Marvi (ADVOCATE)     07 December 2010

i advice you that first give demand notice and than go to the court,not demand only interest but also demand mentallly harrasment because my family is depend my income and if i am not give money to my family my family member not manage financialy problem


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