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By Regd. Post/Courier
To, Dated: 29.06.2017
M/S. ARISE INDIA LTD.
Regd. Office: B-38, Jain Chowk,
Mangla Puri, Palam,
New Delhi 110045
RE: LEGAL NOTICE FOR THE PAYMENT OF PENDING
AMOUNTS TO M/S. GAURAV ENTERPRISES.
Sir,
I am writing the present communication for and on behalf of my client
M/s. Gaurav Enterprises (Address: K-907, Aashiyana Super Market, Bangla
Bazar, Lucknow, 226012) hereinafter referred to as my client, based upon the
following demands amongst others and serve you the following notice:
1. That you the addressee represented yourself to be a Company that
manufactures/markets different varieties of House Hold products,
Electronic Products, Parts & Accessories based out of Delhi. You also
represented to my client your intent to engage my client as an
Agent/Retailer for your business and products.
2. That believing your assertions and statements my client entered into a
formal Agreement with you the addressee dated 10.06.2015 and entered at
Delhi. The said agreement broadly laid out the rights and the duties of
either parties with respect to the sale and marketing of your products. The
said agreement did not go into the specifics of the finance and/or the
recourse in case of defaults.
3. That furthermore the said agreement specifically stated the duration
/validity of the agreement till the agent enjoys the confidence of the
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Company and that my client who is the agent would be responsible for the
performance of all his duties as per the agreement.
4. That as a result a refundable security deposit amount of Rs. 10,00,000/-
(Rupees Ten Lakh Rupees Only) was asked to be deposited by you the
addressee in his account. The said condition was fulfilled by my client vide
RTGS of Rs. 5 Lakhs dated 08.06.2015 and another RTGS of Rs. 5 Lakhs
dated 15.06.2015. The same was acknowledged by you the addressee vide
your letter dated 21.11.2015.
5. That thereupon from June, 2015 onwards my client began performing his
duties with utmost care and responsibility, and the sales of the products of
you the addressee were carried out with such zeal and professionalism that
the same was commended by you on various occasions. So much so, that
an incentive scheme was launched by you for the agencies that were
performing very good. That as per the said incentive scheme my client was
eligible, based upon his sale performance for 2 Goa Trips, amounting to
roughly Rs. 60,000/- and 15 LED TVs amounting to Rs. 24000 x 15 =
3,60,000/-. The abovesaid calculation of incentives is based upon 3020
points earned by my client based upon his sales record.
6. That thereafter in the month of _______, _____ suddenly you the
addressee started to ignore and not respond to the communications of my
client for reasons best known to you. My client who had the pending ledger
amount of Rs. 1,32,157/- pending against you the addressee against the
goods that were not supplied tried contacting you again and again but to no
avail.
7. That further it was initially agreed between my client and you the
addressee and as is the general trade practice, the warranty/replacement of
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defective units of inverters was to be covered by you the addressee.
However, you the addressee failed to cover the warranty/replacement of
defective units of inverters and as a result to maintain the goodwill and the
market image of you the addressee, my client on his own cost replaced the
defective batteries to honor the warranty of the consumers. As a result the
cost of replacement of 30 defective batteries at the rate of Rs. 10,000/- per
piece and amounting to a total of Rs. 3,00,000/- (Rupees Three Lakhs
Only) stands on your account payable to my client.
8. That further as per the agreement entered between the parties, commission
at the rate 5% amounting to Rs. 92,641/- was also accruing against you the
addressee. Significantly, the portal through which you the addressee were
functioning for submission of compliance documents was also taken down
and became offline on _________.
9. That as per the agreed scheme you the addressee had also mandated to
provide Free of Charge (FOC) units of UPS based upon the sales. My client
became eligible for the supply/reimbursement of 17 units of Model 725, 02
units of Model 1500 and 15 units of Model 900. Again you the addressee is
sitting on default of the same. My client inspite of fulfilling his duties as per
the agreement and the scheme was not provided any benefit under the FOC
scheme.
10. That it is significant to note that discrepancies were found in the list price
and the billed price of various units of items. The said discrepancies are
shown below:
S. No. Item Quantity List Billed Difference Total
Price Price (Rs.) (Rs.)
(Rs.) (Rs.)
1. 900 V.A. 63 3810 3914 104 6552
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Battery
2. Rowdy 60 9675 9926 251 15060
3. Marathon 17 9395 11707 2312 39304
Sum Total (Rs.) 60,916
Therefore, as evident above, the item wise discrepancies in the price
given in the list against the price at which the said item was billed caused
monetory losses to my client, inasmuch as the payment in advance as per
the list prices were made by my client. The sum total of the said amount
across various items, if we consider the difference comes to Rs. 60,916. The
same is also due payment to my client.
11. That Carry Forward Amount (CFA) for the months of October and
November 2016 amounting to Rs. 61,903/- and Rs. 92,641/- respectively
were also to be paid by you the addressee to my client.
12. That as per the scheme issued by you the addressee it was mandated that
15% on the sale of batteries and 10% on the sale of UPS was to be given to
my client. The same has also not been issued as yet and remains pending
on your account.
13. That with respect to the stock of you the addressee that remains with my
client, the same bears no market value now and is scrap. The period of
warranty has also expired on the said stock. The same is also occupying
valuable real estate of my clients godown and as result causing loss of
business to my client with each passing day. The same should be
immediately removed from the godown of my client at your cost and effort.
14. That numerous communications and telephonic contacts were made by my
client to you the addressee on various dates but the same were ignored, not
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responded and deliberately refused by you the addressee. As a result my
client is serving you the instant notice to rescind the agreement between
my client and you the addressee. Further you the addressee are liable to
pay the following amounts to my client:
a) An amount of Rs. 10,00,000/- (Rupees Ten Lakh Rupees Only),
deposited by my client as the refundable security deposit.
b) An amount of Rs. 1,32,157/- pending against you the addressee
against the goods that were not supplied shown in the ledger.
c) Cost of replacement of 30 defective batteries at the rate of Rs. 10,000/-
per piece and amounting to a total of Rs. 3,00,000/-.
d) 2 Goa Trips, amounting to roughly Rs. 60,000/-.
e) 15 LED TVs amounting to Rs. 24000 x 15 = Rs. 3,60,000/-.
f) Commission at the rate 5% amounting to Rs. 92,641/-.
g) Difference in List price and billed price per unit amounting to a sum
total of Rs. 60,916/-.
h) Amount to be quantified upon 15% on the sale of batteries and 10% on
the sale of UPS.
i) Amount to be quantified for supply/reimbursement of 17 units of Model
725, 02 units of Model 1500 and 15 units of Model 900
j) Punitive interest @24% compounded annually from ______ to the
date of payment on all of the above amounts.
k) Legal fee and cost of the instant notice amounting to Rs. 5,000/-.
Therefore, you the addressee are put to notice to pay the abovesaid
amounts to my client within a period of one month from the date of notice failing
which I have been instructed to move for the recovery of the same amounts
through appropriate civil and criminal courts. Needless to say that the same shall
be at your own cost and risk. Please take notice accordingly.
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Sincerely,
Manish Singh,
Advocate.
