Legal Question in Product Liability in India

Misappropriation Breach of Trust. A Senior Supervisor and his three colleagues were working in our firm. We are vendors for a multinational company. We do job work, raw material is supplied by the customer. The supervisor was the complete in charge for the job work. After completion they use to take the completed job to the customer on the challan. There were different varieties of the job, the job no and the quantity is entered while delivering the material. Supervisor did the delivery on the Tempo called by him. The material use to be checked by the security of our company. As the material was small in size on an average one bin fits 100 to 120 jobs so for 5000 jobs it use to be 50 bins. The supervisor use to take the jobs for delivery and would do the entry at the parent company's gate. Then the material would be delivered to stores where it would be counted physically. Since last 6-8 months there arose the issue of less jobs being submitted. The company noticed and informed us regarding the same. The supervisor use to write the wrong name of the product and when the chalan was due for Goods Received Note, the concern operator from the Parent company use to call the supervisor for correction in chalan as the name was wrong with respect to Purchase order. Supervisor while changing the name also changed the quantity couple of times by scribbling on it and signing the same. As informed by the parent company the matter must have started with a small quantity & later the quantity was increased. When the matter came to light he had done excess of 43000 nos. We were completely unaware of the fact as he was the whole sole responsible for the production and despatches to the company. Now the main culprit is absconding but his juniors have been caught who initially gave the name of the Tempo driver & where the material was supplied. The two people caught also gave names of the two people in the chain. They all received PC for 3 & 2 days and then were sent for MCR. In the last argument before MCR they said that the person who has complained is the accused. They will prove it at later stages after the main complainant comes. In pursuit police found material worth 3500 rs, twice against loss of Rs. 16 Lacs. They also found the affair of the main complainant with a lady operator in the company on whom he has spent money & she has the knowledge regarding the same but they skipped her name from FIR. We also handed one accused to them but they showed him absconding and also informed us he will be fatal if he is questioned. We have received a big blow financially and also complete Job work has been lost. Please let us know the future course of action as the 4 accused which are in MCR have applied for regular bail and the main accused is still absconding.,

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