impersonating in bank account openiing & transacting

rohan (Querist) 31 October 2010 This query is : Resolved
Hi forum,

I have a query . A person " A " and person " B " are close friends and do lot of business together based on trust . A works in a broking company( on fixed salary ) , this company pays commission to people registered as Contractual employees of client accounts on brokerage earned fromt he client account .

B enlists as contractual employee and some clients who belong to A are introduced through the name of B . Certain commission paymnets are made to B which B encashes in his bank account and shares with A .

Due to certain differences, B starts defaulting in returning the portion of the money and A gets a joint bank account opened in name of A & B using B's docuemnts in his possession and encashes future commission in that joint bank account without B's knowledge.

B came to know about this and now is filing complaint about this bank account and transactions done without his knowledge . B is blackmailing A to return the entire money around 8 lakhs to him in case he wants to avoid police action - There was no role of B in this earning and he is trying to take advantage of the fact that his name was used and money routed in his name .
what legal remedy can A have to save himself . He realises his guilt and wants to rectify the same . he should not have routed the clients through B.

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R.Ramachandran (Expert) 01 November 2010
"A" has no option but to discuss the matter with "B" and arrive at a mutually agreeable settlement. Immediately after settlement, the account has to be closed (of course "B" also to sign for such closure application) and "A" should have a new account opened.

s.subramanian (Expert) 01 November 2010
A has taken the risk of using B's name for his benefit illegally. Whatever money that went to the account of B is money belonging to B legally. A cannot have any right over the same. If B lodges a criminal complaint A will be proceeded against invariably. It is better to settle the matter amicably with B. There is no other way out for A.