I'm a Director - my partner filed a case on me 420, 467, 468
I'm director of a Pvt Ltd company and need help from experts. My partner (another director) has filed a criminal case against me u/s 420, 467, 468
Company has only two directors.
Below is the complaint against me.
I have cheated him by taking his signs without his proper knowledge. (Completely wrong) He has done himself with all his intentions to make money.
An approx amount in 15 lacs (True) has been transferred to my personal account.
However, I was the founder and I did every possible thing to run the company but due to capital issues I was not able to take it forward and eventually i had to close the office last year.
Company is still not wind up.
I have made a several payments from my personal account related to business. My mistake is i have withdrawn money. Lack of accounting knowledge. I was young and trusted my partner a lot.
Even though all was settled with him showing all cause he's now wants his all money back.
Being from a local corporator family he has lots of power within the police department and they're threatening me to repay the amount.
Secondly, few payments were made to a networking team and this police person has made them repay the sum illegally to my partner's savings account.
My chartered accountant had filed wrong statements in MCA with my partners signature onto it and he has accepted his mistake in an email.
Document I have: A CA has prepared the tally sheet and he has all the expense details with his sign and stamp. Please suggest me what should be my next step. Also, What would be my next step. I'm not currently in mumbai.
Currently i'm applying for AB. As CA has done a lot of mistakes and partner is doing illegal activities.
My only problem is i have withdrawn money from Companies account and company has not made much profits.
PLEASE HELP - I'm ready for one on one session but please provide your answers. I'll peak someone today itself.
Asked 8 months ago in Criminal Law from Mumbai, Maharashtra
1)it is necessary to peruse allegations made in complaint to advise
2) pursuant to complaint lodged against you police will issue you notice to record your statement
3) you should deny all allegations made . rely upon CA admission regarding wrong statement filed .by him with MCA
4) furnish details of payments made by you from personal account for running the business .
5) the tally sheet prepared by CA containing all expenses details will help you in making out a case
6) obtain AB from sessions court and contest false case filed by your partner
1. Your emphasis at this stage should be to secure AB as the lower courts are ordinarily loath to grant AB in such cases, so you may eventually have to approach the HC.
2. The withdrawal of money by you is a major weak link in your defwnce. The lack of knowledge and signature veung obtained through undue influence has to be proved by him.
Since the partnership not yet dissolved you can take that plea as your one of defense. You can avail the remedies available in the Indian Partnership Act. If there is arbitrator clause in your partnership deed you can seek for appointment of an arbitrator for sort out the issues amicably. No need to panic or afraid with regard to withdrawal of amount from the partnership account. You try to clarify it. . You have approach court if the harassment of police continue. Once the matter went in to court knowledge the police will not interfere. You have to obtain anticipatory bail that will be help to you. Generally cases like this will stand in the court but you have defend strongly. These types case will treat as civil nature. Can apply for AB.
Here are few questions that i have as of now.
1) I have made few payments via personal accounts for employees salary as well.
2) Are drawings from company to personal account fraud? I have always given instruction to CA to prepare proper accounts but he failed to do so. So if he stated he has filed only two things. opening and closing balance and setoff the financials.
3) my partner other director has illegally asked the service providers of company to repay to his savings account. Isn't this fraud?
Here is the one of the sentence written into it.
"I come to know that "myself" has done fraud to other "director" and my service provider by his own will is paying an amount to my partners savings account. An amount of 5 lakhs plus were taken by the partner from such providers who already rendered services to the company.
A complaint was filed to SP of the police but i'm now aware if action was taken onto him.
Can i take this as fraud and file a case against him?
4) Isn't this a civil case, as proper details are yet not prepared by anyone. And, police are treating me as criminal just because there were some transfer to my personal account.? I was making more money when i was not a partner and individual. After joining this dumb, i have incurred lots of losses and he's putting me as an criminal.
5) Should i file a case against CA? because of his mistakes i'm facing all this problems. He as accepted his mistake in an email to me.
6) Also, there are several resolution passed by my partner which i was not aware of at all. I have already told this to CA and he has accepted in written that i myself was not aware of any resolution made. Can i file a case as well over here?
Please suggest i have to apply for AB asap for my remedy.
Also my local advocate is stating it can take 1 week plus for getting AB from Session court.
Asked 8 months ago
The only problem is that you withdrew the money from the company's account and are not having proper details for the expenses out of the amount withdrawn.
Well, first you obtain AB and then plan the strategies to face the trial proceedings.
If you have the proof for CA's improper account maintenance, secure it and can produce the same before court during defence witness for reducing the vigor of complaint agaisnt you.
Appraise your advocate about the facts and the background history and information so that he would suggest steps to tackle the situation as per prevailing circumstances.
1. This is a clinching evidence to prove that you have not misappropriated the company's funds.
2. You cannot blame CA for this irregularity. If your CA did not cooperate then you could have appointed a new one by sacking the existing one, yo are prudent enough on the subject hence you cannot claim innocence about it.
3. The fraud of the other partner can be brought to limelight by moving a complaint with the concerned police station, which would help you to defend your present case against you also.
The complaint is purely criminal nature because it was not lodged seeking compensation or recovery but to punish you as per law, hence it is maintainable.
5. This will be an afterthought case and shall be deemed that you are foisting a false case only to somehow protect you from the liabilities of the criminal case agaisnt you.
You can immediately apply for AB.
1) all payments towards salaries should be from companies account
2) service provider cannot deposit funds in director personal account . all cheques should be in favour of company only
3) your partner has fraudulently misappropriated company funds
4) if police is refusing to register FIR file private complaint against director before magistrate under section 156(3) to direct police to investigate and submit report
5) it i snot civil case as number of irregularities have been committed
6) you can complain against CA to institute of chartered accountants
7)for passing of resolution notice has to be given to all directors placed on agenda of meeting then resolution passed
8) you can file case against director .
9) since you have already engaged a local lawyer go by his advice
1. Drawings from company to personal account without the sanction of company is cheating and fraud.
2. Your partner has played cleverly, so it does not seem from the cursory facts mentioned by you that there is any basis to file a criminal complaint against him,
3. No criminal case is made out against CA, but you can address a complaint to the ICAI.
4. Your advocate is right on the time frame of AB.