• Can I file cheating case against IL&FS directors, credit rating agencies?

We made large investments in redeemable papers (NCRPS) of ILFS Financial Services Ltd in 2016 looking at LIC, SBI, HDFC as majority shareholders & Triple A rating (same rating as Govt of India bonds) given by credit rating agencies. Within 2 months last year the ratings were downgraded to default. Fraud has been uncovered, Govt has filed charge sheets, the company is in NCLT. But secured lenders, banks will walk away with recoveries. Can we,, as individuals file cheating cases against directors of ILFS, the directors of Credit Rating Agencies & the auditors for concealing the fraud for last 4/5 years?
Asked 1 month ago in Criminal Law from Bengaluru, Karnataka
Religion: Other

Filing cheating case will not hep.

If no Insolvency proceeding is initiated then you can file as corporate creditor and file recovery proceeding.

Another option is to get added in the NCLT proceeding as corporate creditor so your account is also taken into consideration while Insolvency Professionals prepares list of creditors.

 

Devajyoti Barman
Advocate, Kolkata
17824 Answers
253 Consultations

5.0 on 5.0

The said rating are always volatile. If you file cheating complaint you need to establish that there was intentional misrepresentation in the same.

Prashant Nayak
Advocate, Mumbai
12963 Answers
23 Consultations

4.6 on 5.0

Ideally you can file the case. But that doesn't mean you will get the share in recoveries. And if you dont file doesn't mean that you will not get it. Since SEBI establishment all these transactions are regulated

Sandeep Prakash
Advocate, Bengaluru
308 Answers
2 Consultations

5.0 on 5.0

Yes you can

Also lodge your claim with the resolution professional appointed by NCLT in the s. 7 petition under the I&B code

Yusuf Rampurawala
Advocate, Mumbai
4459 Answers
25 Consultations

5.0 on 5.0

YOU can file FIR against the comapny and directors and if credit rating agency has granted fake rating knowingly to boost business of company and undue advantage to raise investment by fake rating, shall be booked as co accused.

Even you are financial creditor have equal claim with secured lenders, banks etc. Submit your claim to NCLT.

Yogendra Singh Rajawat
Advocate, Jaipur
13251 Answers
18 Consultations

4.6 on 5.0

Hello, 

No, you can not file a case of cheating and fraud at this stage. 

 

Regards 

Anilesh Tewari
Advocate, New Delhi
16920 Answers
259 Consultations

5.0 on 5.0

You can file case of cheating, criminal breach of trust against directors of ILFS 

 

if auditors  and credit agencies were party to the fraud then would be equally liable 

Ajay Sethi
Advocate, Mumbai
67029 Answers
4046 Consultations

5.0 on 5.0

Even CBI has decided to file cheating case against the directors of the IL&FS company.

You may also do so

Vimlesh Prasad Mishra
Advocate, Lucknow
5530 Answers
18 Consultations

4.9 on 5.0

you can file complaint u/s 406,420 against director of ILFS.

 

Mohammed Mujeeb
Advocate, Hyderabad
10264 Answers
3 Consultations

4.5 on 5.0

Yes, you can file case against him on cheating based and providing fake documents results and promoted ILFS business.

 

Ganesh Kadam
Advocate, Pune
7519 Answers
65 Consultations

4.9 on 5.0

As per the latest law, you as a financial creditor can file a case agaisnt them before NCLT and claim your amount.

 The IBC has strengthened creditors' rights and the credit market will continue expanding, he pointed out. Creditors can expect 100 per cent recoveries from their client companies going under the Insolvency and Bankruptcy Code (IBC) process for resolving cases of stressed assets and non-performing assets.

The terms “financial creditors" and “operational creditors" should be replaced by “secured" and “unsecured" creditors. All financial creditors are not secured, and many a times, suppliers of goods and services do secure their payments by obtaining some security over the corporate debtor’s assets. This leaves a clear dichotomy in the hierarchy of treatment in the liquidation and insolvency resolution processes. 

This clarifies ambiguities that had arisen following a recent ruling by the National Company Law Appellate Tribunal (NCLAT) in the Essar Steel resolution case. Homebuyers have also been given a stronger voice in the bankruptcy resolution plans of developers that haven’t delivered projects. 

The CoC will have the power to take commercial decisions on distribution of funds to various classes of creditors. Operational and unsecured financial creditors need not be treated on par with secured financial creditors. 

 

T Kalaiselvan
Advocate, Vellore
56755 Answers
706 Consultations

5.0 on 5.0

If you are not party to the 138 Ni Act case then you can do nothing about it.

If the company is no represented then the case would be hit severely. 

Devajyoti Barman
Advocate, Kolkata
17824 Answers
253 Consultations

5.0 on 5.0

Summon may get issued once again or a Bailable warrant may get issued against directors. 

Mohammed Mujeeb
Advocate, Hyderabad
10264 Answers
3 Consultations

4.5 on 5.0

These are dilatory tactics being adopted by company lawyer 

 

if he no longer represented the company he should have informed the court about same 

 

court ought not to have waited for years for completion of cross examination and should have passed orders 

Ajay Sethi
Advocate, Mumbai
67029 Answers
4046 Consultations

5.0 on 5.0

Dear Sir,

After acquittal from the criminal case or cheque bounce case one can file defamation case both in Civil Court and Criminal Court.

Kishan Dutt Kalaskar
Advocate, Bangalore
4440 Answers
112 Consultations

5.0 on 5.0

Lol, it's a delaying tactic obviously 

Take out an application in these proceedings to strike off the right of accused to cross examine and to accept your evidence without any cross examination 

Yusuf Rampurawala
Advocate, Mumbai
4459 Answers
25 Consultations

5.0 on 5.0

In this case if no one appears you can file the application for dismissal in the same. The case will be dismissed.

Prashant Nayak
Advocate, Mumbai
12963 Answers
23 Consultations

4.6 on 5.0

 Court will reject the bail for non representation/appearance. What your advocate Is doing.

 

Yogendra Singh Rajawat
Advocate, Jaipur
13251 Answers
18 Consultations

4.6 on 5.0

If the lawyer is not willing to represent the company anymore then it is his own decision, now the company has to look for a new lawyer to represent the company.

There can be no tactics in it, he is looking for some excuses to avoid awkward situation because he has kept the cross examination itself pending for yeas.

Nothing can be predicted by this move of the advocate.

 

 

T Kalaiselvan
Advocate, Vellore
56755 Answers
706 Consultations

5.0 on 5.0

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