Criminal proceedings against the Directors - Nature of financial ...

Directors Face Criminal Trial for Alleged Fraud: Court Greenlights Prosecution Despite Liquidation Proceedings.

March 16, 2024

Case Laws Companies Law HC

Criminal proceedings against the Directors - Nature of financial transactions - vicarious liability - The High court found that the allegations, if proven, constituted criminal offenses, including cheating and misappropriation of funds, which are distinct from mere civil disputes over financial transactions. - The court clarified that directors could be held responsible if they were directly involved in the fraudulent activities of the company, rejecting the argument against vicarious liability in this context. - The court observed that the appointment of a provisional liquidator did not preclude the initiation of criminal proceedings by the complainant company. - The court concluded that there was no abuse of process and that prima facie, the allegations warranted a trial.

View Source

← Previous Next →

Criminal proceedings against the Directors - Nature of financial ...

Directors Face Criminal Trial for Alleged Fraud: Court Greenlights Prosecution Despite Liquidation Proceedings.

March 16, 2024

Case Laws Companies Law HC

You may also like:

HC set aside trial court's discharge of accused No. 2 (director) in prosecution under s276B of Income Tax Act. Court held specific notice under s2(35) unnecessary when...

Petition u/s 227 of Criminal Procedure Code for discharge dismissed. Allegations in complaint constitute offence of money laundering u/s 3 of PMLA. Prosecution of...

Maintainability of Criminal proceedings - illegal allotment of shares - illegal appointment of petitioner as a director and transfer of shares - The court highlighted...

Criminal proceedings - late filing of return of income (ITR) - The appellants cannot be made to suffer and face the rigorous of criminal trial when the same cannot be...

The HC held that since proceedings for attachment and adjudication by the Adjudicating Authority are in aid of trial of money laundering offence under PMLA, an appeal...

An executive director, being a member of the board and responsible for overall management, cannot evade liability merely by claiming lack of involvement in day-to-day...

Offences punishable u/s 276C(1) & 277 - jewellery found during search - adjudication proceedings and criminal prosecution are inter-dependend or not - The High Court...

Validity of prosecution proceedings under GST - fake invoices - In view of the scheme of the Act, this Court has no hesitation to hold that in the cases of present...

HC granted bail in a money laundering case after 3 years and 4 months of pre-trial detention. The prosecution relied on co-accused confessional statements under PMLA...

HC declined to quash 1999 FIR involving charges under IPC Sections 406/420/468/471/120B and tax laws. Despite the 24-year pendency and petitioner's age (71), the court...

HC affirmed vicarious liability of company directors under Sections 138/141 of NI Act in cheque dishonor case. Directors challenged summoning orders claiming...

Proper authority / Jurisdiction to launch Prosecution Proceedings - It is the contention of the Revenue that the Deputy Director of Income Tax is a senior officer and...

HC ruled in favor of company directors, quashing criminal proceedings under NI Act for dishonored cheques. Court determined petitioners successfully demonstrated they...

Prosecution u/s 276B r.w.s 278B - petitioners have deducted TDS but failed to credit the same to the account of the Central Government within the prescribed time - even...

The petitioners had resigned as directors on 23.02.1998, prior to the alleged cause of action, as evidenced by the certified copy of Form-32 filed by SEBI itself before...

Quick Updates: