Cheated by IT consultancy?

Hi I(we) have started a one consultancy Business after taking Franchise form well known Consultancy (Hyd based) at Bangalore. But The Consultancy CEO cheated us by giving dummy requirements ( his plan was to use us for his CV data base creation) and we worked on those requirements with 6 Employees for 8 Months and we lost 10L. The reason that he gave us was "our management failure"...then we told him to run our consultancy with his Team for 5 Months with target of 16L (Actually he gave us a target of 96L for 1 Year)... after running 5 months he was not able to generate 1L also. Now he is saying that he is not sharing our loses . What action i can take ?

Answers:
This is a pure legal question. Civil matter. Relating to money claim. Also based on Contract terms. The facts given are insufficient to provide pointed answer. The only relevant information is : "one party to a contract has defaulted in his obligations under the contract giving rise to money claim by the other.". The guidance is:
Approach a lawyer for filing a money suit against the defaulting party. Evenif there is no formal contract on duly stamped paper, terms of contract can be derived from available documents, exchange of letters, emails etc. Collate all of them in HARD COPY arrange them datewise, and give a summary of your version and computation of the money claim. Lawyer will first issue a notice of demand and then file the suit.
Points to note :- (1) In the absence of any specific court jurisdiction mentioned in the contract or arbitration clause, the suit will have to be filed at the court in the place of the defendant (2) Court fee, according tothe value of the suit as per State laws has to be paid at he time of filing the suit. (3) At least twice the plaintiff has to go to the court for evidence (4) Time lag 2-3 years. (5) Right of one appeal is there for the party affected by the judgement ; time lag:2-3 years. (6) Defending person need not pay any court fee (7) Negotiate lawyer's fee in lumpsum and pay in agreed instalments.

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