Wednesday, the 30th July, 2014

FSIA & I am SME of India

Team AGBians

That You are Sleeper Financier Cell to Your Client who is Bigger in size

Regular Money Flow is Oxygen for your business

You are paying interest whereas you have extended interest free credit that too without security

Team AGBians

Threat of Delayed Payment beyond agreement period

Verbal assurances given day in and day out by Vendor Development Managers and Accounts Heads, etc.

Meeting after meetings resulting into wastage of time but no recovery in sight

Team AGBians

IF YES – THEN YOU NEED TO PRESERVE FOLLOWING DOCUMENTS

• Signed Copy of Agreements and Purchase Orders

• Signed Copy of Delivery Schedules

• In-Transit Sales Tax Forms• Delivery Challans• Minutes of Meeting• Quality Reports (if you can)

Team AGBians

YOU NEED TO REMEMBER

• The limitation period *3 years* to keep the claim alive – send e-mails, letters that also through speed post

• Always take periodic Balance Confirmations

• *7 Year* Vendor Itch

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This is always beneficial to look for

Alternative Dispute Resolution Mechanism in Agreement as Essential

Clause• Conciliation• Followed by Mediation• Further followed by

Arbitration

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Do You Know???I am SME of India

or FSIA or

any other forum can also be appointed as

Mediator or ArbitratorTeam AGBians

Negotiable Instrument Act 138 for Cheque

Bouncing

•First Warning Sign of Deteriorating Health

•Don’t get carried by flimsy excuses of your client

•Do Remember to invoke criminal offenceTeam AGBians

State MSE Facilitation Council

constituted under MSME Development Act,

2006

• IEM 2 is compulsory to file case under MSME Act

• The forum is comparatively Cheap

• Provides for interest @ 3 times of Bank Rate fixed by RBI

• Appeal against Order difficult

Team AGBians

PERMANENT LOK ADALAT

1. Established by State Level Legal Service Authority (HALSA)

2. Public Utility Services, Pre-litigation Stage, Financial Dispute upto the amount of 25 lacs

3. No fees4. No appeal5. Simple Mechanism6. Less Procedural7. Advocate – not necessary

Team AGBians

CIVIL SUIT UNDER CIVIL PROCEDURE

CODE •Traditional Method of recovery

•Time consuming as well as Money Guzzler

•Heavy Initial CostTeam AGBians

SUMMARY PROCEEDINGS UNDER CIVIL PROCEDURE

CODE

• Fast Decision Possible

• Less Expensive • Possible when you have third

party conclusive proof about timely and qualitative Delivery

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CRIMINAL SUIT UNDER CRIMINAL PROCEDURE CODE

Possible wherever

• Breach of Trust is there• Intent of Fraud can be

proved• Misrepresentation • Concealment of Facts• Wilful Default

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WINDING UP PETITIONUNDER COMPANIES

ACT • In case of client being

Corporate Entity• Not referred to BIFR• Claim is more than 50k• Only as a Last Option

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WHAT IS THE BEST

REMEDY???

Team AGBians

COMPROMISE IS END OF EVEN WORLD WAR

• There are no permanent enemies nor friends• You are here to do business not fight legal battle•Wherever and whenever respectable compromise is offered – do it and move on in life• Judicial System (Registrar, Judges, Advocates, etc.) is not at all interested in resolving disputes that too business disputes Team AGBians

Team AGBiansagbcorplegal@gmail.com

www.agbcorplegal.com09811386723