Legal Question in Constitutional Law in India

I am a shareholder of 25% at present and i was also a director in our small scale registered private limited company of our family. Others directors are my elder brother and his other family members. Last year my elder brother retired me from the directorship by preparing my false resignation letter. I complained in police in which he did not produce the original copy of my false resignation letter for verification and police closed the complaint. But now he is ready to give me the lump-sump amount of 20Lacs through a payees account pst dated cheque from his personal saving account against the total valve and my share of the company by compromise like land, building, machinery etc and this amount is also acceptable to me.

Sir, now my question is that firstly, i want to be very much clear that can a director issue such type of payment by cheque from his personal saving account to me as per laws of company board or is it not a genuine transaction?

Secondly, if he again dishonours the cheque, can i file the court case under NIA 138 or police complaint again against him?

Give me other possitive and negative points.


Asked on 5/12/12, 8:40 pm

1 Answer from Attorneys
www.lawconcern.com S.Seshadri www.lawconcern.com

1. You must approach the Court for registration of FIR as Police have closed your complaint.

2. If your brother gives a peresonal cheue that is valid only as he may be the purchaser of your share.

3. You can ask for Banker Cheque/ DD instead of cheque to safeguard against dishonour. Otherwise you can put appropriate safeguards in agreement to protect against payment by cheque dishonour. Contact : [email protected]

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Answered on 5/13/12, 12:00 am


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