Breach in agreement

Dear client,

1. Review the Agreement in Detail
Check if the agreement specifies the process for refund or termination of the franchise.
Look for clauses regarding breach of contract and dispute resolution (such as arbitration or legal jurisdiction).
2. Send a Legal Notice
Engage a lawyer to draft and send a legal notice to the company and its remaining director, demanding either:
Timely payment of the agreed ROI, or
Full refund of your investment (XY amount).
3. Check the Company's Financial Status
If the company is financially unstable or near insolvency, you might need to explore whether the company is under liquidation proceedings.
You can check this with the Ministry of Corporate Affairs (MCA) website using the company's CIN (Corporate Identification Number).
4. File a Complaint Under the Consumer Protection Act
Since you are a franchisee, you may qualify as a consumer under the Consumer Protection Act. You can file a complaint in the District Consumer Forum for:
Deficiency of service (for not paying ROI as per the agreement).
Refund of your invested amount with interest and compensation.
5. Initiate Arbitration or Civil Suit
If the agreement has an arbitration clause, you can invoke arbitration by appointing an arbitrator and proceeding with the dispute.
If there’s no arbitration clause, you may file a civil suit for recovery of your investment and damages.
6. File a Criminal Complaint
If there is clear intent of fraud or misrepresentation, you may file a complaint under Section 406 (Criminal Breach of Trust) and Section 420 (Cheating) of the Indian Penal Code.

You should consult with an advocate to discuss your specific situation and legal options.

Dear Client,
The Companies Act 2013 attributes the liability on the 'officer-in-default' to penalize officers, in addition to penalties levied on the company itself for various categories of defaults, contraventions, or non-compliance. The term 'officer-in default' as defined under Section 2(60) of the Companies Act, inter alia, includes a whole-time director or key managerial persons (such as CEO, CFO, whole-time CS, MD) owing to their involvement in the day-to-day activities of the company. Every person who was a director of the private company at any time during the relevant year shall be jointly and severally liable for the default or any breach of any contract. On the demise of a Director, the surviving Director(s) is held responsible for any breach of contract executed by the deceased Director on behalf of the Company. Even under the Income Tax Act, the liability of a director of a private limited company is beyond their tenure with the company. Since you have taken up a franchise from the said company through the execution of a franchise agreement, your grievance against the company is considered a commercial dispute. and the remedy lies with the Commercial Court constituted under the Commercial Court Act, 2015. A commercial dispute is a disagreement relating to commerce between two or more stakeholders. These disputes generally arise in relation to contract terms and conditions, fiduciary duties, or intellectual property rights, and may be settled through court proceedings or alternative dispute resolution(ADR). So, considering the nature of the dispute, you have to escalate your grievance before the Commercial Court for redressal. Reach out to an Advocate handling commercial disputes before the Commercial Court for guidance and steps.

Dear Sir,
You may lodge a complaint against the company and leaving director and also get issue a legal notice and thereafter file a suit for recovery of the amounts.