offence of ipc 409
Ajaykumar Sanghavi
(Querist) 19 April 2015
This query is : Resolved
I want to know whether secretary of co op society can be booked under section 409? Whether auditor has locus standy to file a complaint against the secretary of the co op society based on the audit report?
Devajyoti Barman
(Expert) 19 April 2015
Yes, secretary can booked under such offence if he was entrusted with the job of maintaining accounts.
Nadeem Qureshi
(Expert) 20 April 2015
read section 409 of IPC carefully and get the answer.
409. Criminal breach of trust by public servant, or by banker, merchant or agent.—Whoever, being in any manner entrusted with property, or with any dominion over property in his capacity of a public servant or in the way of his business as a banker, merchant, factor, broker, attorney or agent, commits criminal breach of trust in respect of that property, shall be punished with 1[imprisonment for life], or with imprisonment of either description for a term which may extend to ten years, and shall also be liable to fine.
malipeddi jaggarao
(Expert) 20 April 2015
Which auditor will take that responsibility? Audit is conducted as per the order of the statutory body. The auditor need to bring all the facts in his report and place before the authority, who has to take decision on the issue.
Guest
(Expert) 20 April 2015
Mr. Ajay Kumar Sanghvi,
Are you really a lawyer, as per your profile? I have my own doubt!
Your question is merely of academic nature. I have noticed, all your previous queries had been only of academic nature without any background of the cases.
However, can you please clarify whether the auditor has approached you in the individual capacity to file a case against the secretary u/s 409? If so, which type of criminal breach he has noticed on the part of the secretary of the cooperative society?
Ajaykumar Sanghavi
(Querist) 20 April 2015
In my case, in a milk co op soeity regulated by the gujarat co op society act, an audit is mandatory as per the said law. Govt . Has an office to conduct the audit such socity. It is called the special registrar of the co op socety. the special registrar assign the duty to conduct the audit of the co op society.
In my case during the audit of a milk co op society, the auditor has found some irregularities. The secretary has the withdraw the amount of rs. 18000 on 12th of march 2012 from the bank throgh cheque and credited the said amount of re. 18000 in the accounts of the socity after 6 moths e.g.12 sep.2012. Thus he has temporary mis appropiated the amount for six months.these irregulities are found by the auditor and hence he has filed complaint under section 409 against the secretary of the society.
Guest
(Expert) 20 April 2015
Mr. Sanghvi,
The auditor has no authority to file any FIR against the secretary of the society on the basis of his finding. His duty is restricted to audit of the accounts and then submit his report to the Reistrar office with a copy to the society. So, the auditor has no business to over-step beyond the scope of his duties and responsibilities.
On the other hand, the society has to submit compliance or explanation on the audit para to the office of the Registrar. It is the prerogative of the General Body of the society to approve any action or the Registrar to file the case against the secretary. An isolated case cannot become the cause for doubting the integrity of the secretary. The secretary has to get the opportunity to defend himself before the membership and the Registrar.
Biswanath Roy
(Expert) 23 April 2015
Observing from the given facts, I opine, the Auditor has no competence to file an F.I.R. against the Secretary of the Co-operative Society.
T. Kalaiselvan, Advocate
(Expert) 30 April 2015
Agreed with the views and observations by the experts above that the auditor has no reason or authority to lodge a complaint against the erring officials. It is not among his duties as well. His duty is to find the irregularities and furnish his findings in his report after which he is absolved from it.
