Out of six directors in a private limited company , two directors were authorized to execute and to operate the loan facility availed by the company from a bank through a board resolution. Personal guarantees were also executed by them . Now , since the loan account has gone bad after 3 years, they have complained to the police that a fraud has been done by those two directors and the bank manager to fraudulently take the loan. by forging their signatures on board resolution It is important to note that the property kept as mortgage by the bank belons to the director who was authorised by others . Police has also registered a FIR under section 420,467,468 and 120(B) against the 2 directors and bank manager . In this period of three years , there have been financial transactions between the complainant director and company , even then they deny the knowledge of loan . the charge was also created on MCA website . What should be the remedy ? Is it a case which is to be tried under company law 2013 or by police ? should they approach high court for quashing of FIR ?
1)?quashing is to be done only in exceptional circumstances
2) wait for police investigations to be completed and charge sheet filed
3) then based on legal advice file for quashing
4) it has to be proved that signatures of directors were forged
5) rely upon opinion of han d writing expert to prove your innocence
6) Police would refer documents to forensic lab for determining whether signatures are forged or not
Police will investigate the fraud and then the case will be tried under the provisions of companies act.
You can file petition in high court for quashing of FIR if you have sufficient evidences to prove the directors are not guilty.
1. This is a clear case f forgery and cheating and hence there is no impediment in further proceeding of the criminal charges and hence quashing is not an advisable option.
2. Now against this mismanagement and for removal of these directors appropriate proceeding can be initiated in the NCLT under the Companies Act as well.
3. So act accordingly.
Hi,
In case of the company, the company act should operate. But, personal nature offences such as fraud etc. may also be tried as per IPC. Hence, you may approach High court for quashing of FIR but keep in mind that police investigation may bring more truth and reality before all concerned.
No doubt this appears to be the routine affairs of the company but due to some vendetta, one of the directors has lodged this unfortunate complaint.
However since the complaint has been registered by the police with a FIR, ow to come out of it either the accused have to participate in the trial proceedings or can file quash petition before high court .
But is advisable that they wait for the police to file charge sheet and then decide bout filing either quash petition or discharge petition.
At this stage there is no use in approaching company law board.
Dear Client,
For forging signature on board resolution and further process to avail loan, matter shall be investigate by police.
Not advisable to approach HC, possibility that HC may direct to expedite investigation.
If have evidence or any such incident through which it can be proved/inferred that board resolution is not forged than can apply for quashing of FIR.
