About insolvency petition

Kumar (Querist) 28 July 2012 This query is : Resolved
Dear all

I have a client who runs a software business, as a process he collected some security deposit but used the same for business expansion and to company in meeting its regular expenses. Suddenly there was a aggitation by employees to repay their security deposits and my client was booked u/s 406, 420, 120b, 3&5 of appdff act and few 138secs, and was sent to remand for a period of 70days and was now on bail, unlike other companies i find some genuinety in this case where he really wants to bring the company to normalcy, but the damage created by employees in media nd in public he is nt able to raise funds and now he was under tremondus pressure, and asked my advise whether he can go for. An IP, i want to get an experts advice whether he will still have to face criminal liabilities even if he files an ip, where he has 100% proofs that there is no one percent fraud in this case, with all the expenses sheets which are ment only for company, nd not only that even if he has to refund he has to refund only after 2years nd if an employee resigns he will nt get the refund, this is as per their bond i need an advice at the earliest with few good citations in this regard

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