• Legal action against franchisee for business losses, fraud negligence, and data theft

Dear Kanoon.com Lawyers/Team,

I am seeking legal advice on pursuing action against a franchisee in, India, who has directly contributed to substantial financial losses for my UK-based business. The Hyderabad franchise was officially registered as a franchise and was responsible for back-office operations, including sales, marketing, customer support, payment collections, and managing critical customer data on behalf of the UK company.

Recently, the franchisee has become unresponsive, switching off their phones and seemingly absconding. In addition, they took important data (such as booking forms) from our shared systems and deleted much of this data, further impacting our ability to manage customer claims and finances.

I have several questions regarding possible legal actions and the relevant sections under Indian law to address this serious situation:

Grounds for Legal Action: What legal actions can I initiate in India for breach of contract, negligence in duties, potential fraud, and data theft, given that they failed to fulfill their contractual obligations to the UK company and are now absconding?

Relevant Sections and Acts: Under which specific sections of the Indian Penal Code (IPC) or civil contract law can I file a case? Are there specific provisions for:

Negligence in fulfilling back-office duties (including customer support and collections) that led to financial harm?
Absconding, fraud, and potential data theft, given their failure to transfer funds, safeguard critical data, or continue operations?
Breach of contract, as they did not fulfill their agreed responsibilities, including preserving essential customer data?
Process for Legal Action: Could you outline the process for filing a complaint or lawsuit against an absconding franchisee in Hyderabad, and what evidence will be crucial to support my case?

Possibility of Criminal Charges: Given the franchisee’s unresponsiveness, deletion of data, and the resulting financial impact, would this case qualify for criminal charges? If so, could charges like criminal breach of trust (Section 406), cheating (Section 420), or data theft apply under the IPC?

Recovery of Financial Damages: What options do I have to recover the financial losses and customer data that were compromised due to their negligence? Could the court order damages, restitution, or even require the retrieval of critical data if it can be located?

Steps for Immediate Action: Since the franchisee is absconding and has deleted data, is there any immediate legal action (such as sending a legal notice or filing a First Information Report (FIR)) you would recommend to formally initiate the case, protect my interests, and prevent further loss?

I would greatly appreciate any guidance you can provide on the above questions, as well as recommendations for the best course of action given the franchisee’s absconding status, deletion of data, and my priority to recover losses.

Thank you for your advice