Legal Question in Criminal Law in India

Fraud case

This is in continuation of my yesterday's question. I have issued cheques worth rs 9 lacs to the broker and all the cheques have been cleared by my banker. So as per book i have to receive rs. 9 lacs from the broker for which he has not given me any delivery of shares. He has adjusted the entire amount paid by me in his ledger by doing speculative transactions in my account. Now he shows that amount or rs. 3.5 lacs is to be receivable from me. That means that i incurred a loss of rs. 12.5 lacs by doing speculative transactions. In order to recover the amount of rs. 3.5 lacs, he plans to file a criminal/civil suit against me. In this regard, I would like to inform that i have never signed any contract notes, no ledger statement nor any order on phone confirming the said transactions. Now can i file a criminal/ civil suit against him to recover my amount which is due from him as per records. How can he initiate a criminal proceeding against me when the record shows that rs. 9 lacs is due to me. Does the courts in India accept a criminal case against anybody without checking the records? If he at all succeeds, what should be my course of action. Please advice.


Asked on 1/22/09, 9:49 pm

2 Answers from Attorneys
Sudershan Goel India Law Offices of Sudershan Goel - Advocate

Re: Fraud case

You should immediately raise a demand of the money represented by your cheques which as per your statement were authorizedly encashed by the broker.

You may also consider lodging a police complaint against him or institute criminal case in the court.

A civil suit for recovery of money may also be filed simultaneously.

It may be better for you to engage a local counsel to pursue your legal remedies.

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Answered on 1/23/09, 8:47 am
Shrichand Nahar S.V.Nahar, Advocate

Re: Fraud case

1. Criminal cases are meant to punish the offender and not for recovery of money. For that you need to file civil suit.

2. You can show mala fides of complainant to the court and seek necessary orders.

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Answered on 1/23/09, 1:04 am


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