Cheque Bounce
4 years ago
I entered into Franchise Agreement with Co. ABC Pvt Ltd. They collected Franchise Fees postdated cheques in the name of Co.XYZ LLP. All postdated cheques pertaining to Franchise Fees were honoured. But I stopped postdated cheque for service tax as ABC Pvt Ltd. refused to issue invoice . Neither XYZ LLP issued any invoice for Franchise Fees cheques collected.
XYZ LLP took us to Court now for sec 138 relating to Cheque bounce.
In their Evidence affidavit filed yesterday XYZ LLP mentions its a LLP company responsible to look after the work of Company ABC Pvt Ltd . Whereas we have not signed any type of agreement with XYZ LLP.
Am I liable to pay XYZ LLP since I have no business relationship with them.
Also can I claim back the Franchise Fees from XYZ LLP as I had no business relationship with them and out of ignorance I issued Franchise fees cheques to XYZ LLP as instructed by ABC Pvt Ltd.
Rameshwar Dadhe
Responded 4 years ago