• Bail and FIR squash

My Father was doing a business in Mumbai. a private limited company . My mother was a director on records eventhough she was a housewife ,but later reigned on 2012 and filed in ROC (form 32) . The company was involved in a business ttxn with a US based company who had given goods on 2013 on consigment basis. The cargo was sold on loss and company also became sick .Only part amount was paid. Now the US company has had a credit insurance on the said shipment and the insurance agent has fixed a collection agent who has made a 420 / 406 rw 34 ipc. Now my mother was on a trip from chennai to singapore  to meet my brother but was detained in the airport and sent to mumbai . was given 5 days police custody and then sent to mumbai thane jail. Bail plea was rejected in magistrate court stating that she continues to operate the accounts in bank even after resigning. But she has never signed a check or involved in transaction in the company . the company account is still open and she seems to be the signing authority in the account . wasnt it the companies responsibilty to remove her name after she regisned and resignation accept. 
should we reapply for the bail in magistrate court or goto session court. All other directors are still absconding including my father who is overseas.
Asked 3 months ago in Criminal Law from Navi Mumbai, Maharashtra
Religion: Hindu
It is necessary to peruse order passed by magistrate court rejecting bail 

2) you can move sessions court against order of magistrate court rejecting your mother bail 

3) if your mother had resigned and resignation accepted by the company your mother shoukd not have signed further cheques on behalf of company 

4) company ought to have removed your mother name as signing authority on her resignation being accepted 

Ajay Sethi
Advocate, Mumbai
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1) since amount involved is substantial court would consider said aspect also 

2) there is no guarantee that sessions court will grant bail 

3) you should emphasise on fact that mother studied only till 8th standard is housewife

4) quashing of FIR is done only in exceptional circumstances

5) wait for police investigations to be completed before applying for quashing 

Ajay Sethi
Advocate, Mumbai
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1219 Consultations
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It appears some FIR is registered in which your mother's name being one of the Directors is mentioned and hence she was arrested in connection thereto.
Since she is under custody now, first apply for bail in the court of Magistrate and once it is rejected then move to sessions and high court.
After getting bail and submission of charge sheet only think of quashing.
Without knowing the full case history I can not comment on the merit of the quashing case.
Devajyoti Barman
Advocate, Kolkata
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If it has been rejected by the magistrate then move the Sessions Court for bail. Unless the prosecution can show that she was responsible for conducting the day to day affairs of the company she cannot be detained. The lower courts ordinarily do not grant bail when the amount claimed to be misappropriated touches 8 figures. You can move the Sessions court the very next day after rejection in the magistrate court.
Ashish Davessar
Advocate, Jaipur
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she seems to be the signing authority in the account . wasnt it the companies responsibilty to remove her name after she regisned and resignation accept. 
should we reapply for the bail in magistrate court or goto session court. All other directors are still absconding including my father who is overseas.

Once your mother had resigned she should have ensured that she snapped all her ties with the company.

If she had not given a letter to bank to close to remove her name with a notice to the company for effecting this, then it will be deemed that she still is in the company's rolls. 

Even now a fresh application for bail may be moved after ensuring that a notice is given to bank to remove her name from the authorised signatory owing to her resignation from the company which may be produced as evidence in the fresh bail application.
T Kalaiselvan
Advocate, Vellore
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she has never signed any checks. she was a housewife .studied only 8th . but the company did not care to remove her name in the bank. also the amount claimed was 1.8crores. will that also play a role in the bail . 
will session court give bail for sure. How many days after the rejected bail in mag. court we can apply in session court . can we simaltaneously apply to squash the FIR . why this is criminal case. can that be challenged


You can move the sessions court even now after making sure that the notice is served to the bank to remove her name from company's list of authorised signatories.

Whether she signs a cheque or not is immaterial, but her name still remains in company's record is the matter that is going to be considered by court.

First get her out on bail and then think about quashing the FIR by filing petition before high court under section 482 cr.p.c.
T Kalaiselvan
Advocate, Vellore
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surety has to be from state of Maharashtra only 

2) court would insist that surety be from Maharashtra only 
Ajay Sethi
Advocate, Mumbai
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For a surety to be taken from Chennai, it would be preferable that ask government servants/employees to be your surety for the bail because the employment identity card and the salary slip would authenticate them without any requirement for background verification or somebody vouching for them at Mumbai.
Alternately a surety other than a government employee or a salaried class person, the proof of solvency viz., property title document and tax receipts for the said property shall be  convincing surety. 
There is no necessity for any notarised document. 
T Kalaiselvan
Advocate, Vellore
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The surety has to bring the documents of his movable property such as RC of a vehicle, FD and preferably the sale deed of a property so that the court can vouchsafe his solvency. 
Ashish Davessar
Advocate, Jaipur
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449 Consultations
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The courts accept an outstation surety with caution, so tell him to bring all his documents. 
Ashish Davessar
Advocate, Jaipur
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449 Consultations
5.0 on 5.0

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