I am a CA Final student. I have entered into a contract for doing accounting works, taxation etc for the years 2007-2008 and 2008-2009, which is clearly mentioned in the MOU in company's official letter head signed by a Director on Company's behalf, with a construction company and they failed far before the current recession due to mismanagement. They were paying me part payments towards contract amount, a fixed sum, upto December 2008. Thereafter no payments made. My contract period ended on 31.03.2009. Now more than half of the amount is due from them. Now the construction works are taken over by some other person who had acquired major shares in this company joined as Managing Director. For ease of usage, I'm calling it as "New Company". Now what the previous company says is 'Your work is related to the stage of progress of construction and construction is only half the way and your payment will be half of the contract amount already agreed. My stand is why I should lose when they failed due to their own mistakes. Now what I did is I told them It will not be possible for me to hand over the works already done and work further for which they are not paying. The work site was laid down till May First week 2009 and I was not able to work in the office. Now the new company has their own accountant and staff and is not willing to employ me further. But I have completed the entries upto which the work site was functioning. I had applied for the Accounting Technician Certificate from the Institute. Then whether I'll be eligible to apply a lien on the works I have done like auditor's lien? All the works are lying with the office of the company. But I have not revealed the security password for the works I have done. It's a private limited company. They have not filed audited accounts for the year ended on 31 March 2008 for reasons beyond my control. Now whether I can exercise lien (by not revealing password) over the works I already done? Is my stand right? Whether there is any solution for this? The new company is willing to pay me the sum since they want opening balances. But they'll be deducting from the consideration due to the old company from them, for which the old company is not willing to. Please help
27 May 2009
Shelson, What T Personally feel is 1. At present you are not a CA, so the professional ethics rules etc. doesnt apply to you. Also you were not employed or worked in a capacity of a CA. 2. You have right to claim the money pending on your account provided you have done all the work as stated in the MOU till March, 2009. 3. Payment to you by New company for the sake of Opening balances is in your favor. If the new company is going to deduct the amount from the consideration payable to old company, it is not going to make any difference for you as you are also not interested to join the company again. You have an upperhand over here.
Ask the new company to pay you as they are ready for this.And dont worry for the consideration which old company will receive.
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