Recovery from employee in case of cheque bounce
Krishan Kumar Agarwal
(Querist) 30 May 2013
This query is : Resolved
Dear Concerned,
I am employed with a reputed MNC at middle management level and have been regularly doing well.
In last month, my colleague (who was reporting to me) sold some products to a shady customer against cheque and the cheque got bounced on presentation.
This customer had a history of 20 cheque bounce in last 4 months but the money was recovered immediately, without any reminder and intervention. This time, the customer turned defaulter and wants time of 6-8 months to pay money.
The company is now pressuring me and my colleauge to pay the money as we accepted cheque beyond the prescribed limits and also knowing the history of cheque bounce.
My bonus, increment & current month's salary is put on hold by the company.
Please advice on the following:
1. Can the amount be recovered from me and my colleague?
2. Can the company file any case against us?
3. How shall I proceed to claim my withheld bonus & salary?
ajay sethi
(Expert) 30 May 2013
has the management laid down the credit limit for customer in writing ?
you have stated that cheque has been accepted beyong prescribed limits?
what is the cheque maount . ?
if you have deliberatley flouted the guidelines laid down for customers company can take discliplinary action against you .
the remedy is for company to file case against defaulter and not against its employees .
try to convince defaulter to make part payment now against bounced cheque
Krishan Kumar Agarwal
(Querist) 30 May 2013
Thanks for the advice. The amount of cheque is appx 50 lacs and the customer has paid only 50k. Company has aleady issued the notice to customer and now the customer is on back foot saying he has nothing to pay and let the recovery take legal course.
The limit for my sanction was 10 lacs but my reportee was flouting the limit. This was in my knowledge as well but due to business pressures the same was overlooked.
ajay sethi
(Expert) 30 May 2013
well if you had flouted the limit of Rs 10 lakhs laid down by management company can sack you and your juniour .
refuse to pay rs 50 lakhs . at most company will sack you . inform the company that you are not in position to pay huge sum of Rs 50 lakhs . the customer was supplied goods inorder to meet sale targets .
best option would be to ask customer to return the goods .
Krishan Kumar Agarwal
(Querist) 30 May 2013
Thanks Ajay.
Customer has already consumed goods and cannot be returned. I have already refused for payment. Company issued show cause notice to me and my junior to which we have reverted, blaming each other.
Now the company has not reverted on the reply submitted by us rather put our salaries on hold.
In case of being sacked, I think the salary, bonus & gratuity would be forfited by them or can I claim it?
If I resign in current scenario, i.e. before any action by the company on reply to show cause notice, would that help to get the clean chit or my money?
Guest
(Expert) 30 May 2013
What is the amount of security deposit of that customer with the company?
ajay sethi
(Expert) 30 May 2013
what are the allegations mentioned in show cause notice ? does it mention that in collusion with the customer you have supplied goods to customer . have you in sanctioning additional limits made extra bucks?
what is your salary with eld .
if you cna get a good job in another company resign . you wont get a clean chit .it appears company suspects you made some money in sanctioning additional limts . better consult a local lawyer
Krishan Kumar Agarwal
(Querist) 30 May 2013
There is no security deposit as such. The dealing is delivery against payment.
ajay sethi
(Expert) 30 May 2013
if company has security deposit / bank guarantee of customer it can encash BG or adjust diues against SD
Krishan Kumar Agarwal
(Querist) 30 May 2013
The show cause notice asked for the reasons for not escalating the matter to seniors for previous cheque bounce cases, which came to my knowledge and also allowing the limits flouting. It did not metioned any nexus with the client.
Incidentalyy my appraisal result came in last month and by Bonus, increment differential + salary of month amounts to app. 2 lacs. Also my gratuity amount is almost the same for over 8 years of service.
Guest
(Expert) 30 May 2013
Dear krishan Kumar Agarwal,
Please don't mind, query-wise my frank opinion about your case is as follows:
1) Yes, the amount can be recovered from you and your colleague for (i) Causing a loss of Rs. 50 lakhs to the company, (ii) flouting of the company's norm in supply of goods five times the prescribed limit, (iii) awareness of both of you and your junior about the customer being a very bad paymaster having a track record of bouncing of 20 cheques within a very short span of 4 months, and (iv) there being no security deposit from the customer.
2) Your company can file a case against both of you even for criminal conspiracy and breach of trust in league with the customer, whom you supplied the goods five times the prescribed limit and having even no security deposit, despite his very bad paying habits with a track record of bouncing of 20 cheques within a very short span of 4 months. The added fuel to the fire was that both you and your junior were well aware of the fact that there was a prescribed limit for supply of goods.
3) You would need to pursue hard with the customer to recover the cost of goods in order to claim your bonus and current month's salary with increment. However, if you proceed legally to claim your dues, the chances are quite bleak, as the company seems to have treated your action as a fraulent activity. You will have to struggle quite hard to claim your dues till the recovery is made from the customer.
In fact, as a senior manager and being in a responsible position with the company, you were required to go very cautiously with the said customer, when you noticed frequent cheque dishonour cases within a very short span of period of 4 months.
Rajendra K Goyal
(Expert) 30 May 2013
Fully agree with the views of Expert Sh.PS Dhingra. You should try from every corner to get the money recovered, and if criminal proceedings are initiated you will mark a stoppage to you career along with facing other troubles.
R.K Nanda
(Expert) 30 May 2013
agree with experts.
Raj Kumar Makkad
(Expert) 30 May 2013
I have also the similar opinion as of other experts.
Sudhir Kumar, Advocate
(Expert) 31 May 2013
you have caused loss to the company by taking cheques from such party. The money can be recovered from you by civil suit even if you are sacked.
From given facts I yet to see strong possibility of criminal action for cheating against you. Company lawyer may work hard and make so
