• Withdrawal of money using bogus bills

We run a partnership buisiness for last 15 years .Three partners are there.My share is 30% others share 35 each.In 2013-14 we stopped business due to shortage of funds in company.while going through the accounts it was noticed that so many bogus hawala bills found and it is paid thru cheque and they collected amount return in cash.This stopped the companys growth.salas tax department taken action against these bills and tax is paid along with penalty by company as bill is taken in company account.income tax department also sent notice against this transaction.This is done by one of our partner who was looking after the accounts and office activities of the company. But the cheques was signed by other partner also. all these cheques are signed by both 35% partners not by me. How I can recover this money from these people?what wiil be the legal complications which will arise aginst the company?
Asked 1 year ago in Business Law from Mumbai, Maharashtra
1. This constitutes the offence of cheating and criminal  breach of trust, so a criminal case will have to be filed in the court through a private complaint.

2. To recover the money from them you have to file a suit for recovery in the civil court as a criminal court can onl punish the wrong doer but cannot undo the wrong.
Ashish Davessar
Advocate, Jaipur
22966 Answers
631 Consultations

5.0 on 5.0

1) file police complaint against 2 partners for criminal breach of trust , fabrication of documents 

2) issue legal notice to the 2 partners to repay amount misappropriated from the firm 

3) if they fail to make payment file suit to recover the said money 
Ajay Sethi
Advocate, Mumbai
44404 Answers
2580 Consultations

5.0 on 5.0

Dear Querist
being a partner you may claim your money or file a criminal complaint against them for their illegal activities before police or court.

you may also file a civil suit for recovery of money or damages before civil court.

Feel free to call
Nadeem Qureshi
Advocate, New Delhi
4796 Answers
220 Consultations

4.9 on 5.0

1) Hopefully your partnership firm is a registered partnership firm. 

2) It appears that your other partners have cheated you and at the same time have also  put the partnership firm at risk by doing hawala transactions based on false bills and thereby inviting the tax liability from sales tax and income tax.

3) The  only options available to you are file legal notice to other partners asking for rendering of accounts( stocks, assets, liabilities, bank balances) and appoint an external independent auditor to undertake forensic audit so as to estimate the share of liabilities of each of the partner.

4) You should file a criminal complaint against the  other partners under cheating (sec 420 of IPC), Criminal breach of trust (Sec  405 of IPC) and falsifying accounts ( Sec  477A of IPC) immediately  so that you are not held responsible for the fraud committed by your other partners.

5) You should also file a civil suit to recover your hard earned money due from the firm and also make the other two partners responsible for the losses and tax liabilities( both sales tax and income tax liabilities) .

6) You should also request the court to appoint an advocate commissioner/ receiver to manage the day to day affairs of the firm till such time the assets and liabilities are distributed,  disputes with tax authorities are resolved and partnership firm is dissolved or transferred to you (you + another new partner.)

Hope this helps
Rajgopalan Sripathi
Advocate, Hyderabad
1267 Answers
155 Consultations

5.0 on 5.0

If you can collect the details of all such fraudulent activities of other two partners, you may secure them first. Then talk to them to give your share of profit, if they refuse then you may either issue a legal notice or lodge a criminal complaint with the police for misappropriation of funds, embezzlement offences, breach of trust  cheating and other fraudulent acts.
Besides, with the help of the evidences secure, you may file a money recovery suit too seeking your share  and can submit the calculation sheet about the actual calculation of funds due to you.
T Kalaiselvan
Advocate, Vellore
34541 Answers
372 Consultations

5.0 on 5.0

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