Issue legal notice to broker to pay you commission for referrals made by you
2) mention amount payable
3) deny allegations made in show cause notice
4) if broker fails to pay sue the broker to recover your money with interest
Non release of commision/ payout
Sir /Madam, I have been working as a business associate since September'2020 in a stock broking company Globe Capital Market Ltd having head office at New Delhi. I do refer clients to the said broker . It's a commision based profile and I do receive my commision payouts every month propertionately to my acquired clients revenue contributions. But surprisingly all of sudden the broker has stopped the commision without any information or reminder. When we chased for the same they are issuing a show cause notice reads as below.. It is observed that you allegedly involved yourself in connivance with one of our employee namely Mr.X procured the clients directly through him and thus, diverted/mapped the clients directly to yourself in order to divert the brokerage generated from the said clients and thereby managed to procure huge brokerage/revenue by you through the aforesaid employee and distributed the brokerage between you both. But the fact is the above employee has joined the organisation much after my registration as associate. The broker has a wrong motive as the accused employee has left their organisation, they are making vendetta measures to hold my payouts. As I am not their employee I will request my clients to close/switch their accounts but kindly advise how to get back my held commision payouts and the commisions to be generated till my clients accounts are active . Thanking
Asked 2 years ago in Business Law
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6 Answers
- Since, you are an employee of that broker , then no rule of that organization applied with you as mentioned in the show cause notice , and the said notice has been given only to grab your commissions, however, you can reply of the said notice after mentioning that this notice is issued to digest your hard earned commissions and nothing more.
- Further, as you are a registered associate of the said broker , then he is under obligation to refund the commission, and hence you can send a legal notice for claiming the same.
- If there is no positive response, then file a recovery suit against him.
Do you have any agreement in this regard for the reported brokerage or commission thereon?
If you are working as a business associate, then what are the terms of your association with him, is there any terms reduced to writing, is he obligated to you to pay the commission and whether you have any proofs to prove this agreement between you both?
Since he has issued a notice making several allegations against you, it would be better that you give a reply notice denying all his allegations as well as placing your demand for the brokerage stopped abruptly especially the dues that are to be paid to you.
Once you get a reply then you can decide further course of legal action which would be appropriate to recover your dues.
If you are an employee then the notice issued by your employee will not be binding on you until and unless if this was part of your terms of employment.
You can challenge their notice legally.
Dear client I am sorry to hear that but in this case you can approach the court and why the complete against them or try to amicable the resolve the situation
You can file case against brokerage house first by making compliant in the SEBI and later on the court under Contract Act.
you can seek the same by filing are recovery suit against them
