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Narayan (proprietor)     09 November 2012

Case under 406,409,420

One of my clients had filed a compliant against me and since I was away for some time I did not know about the complaint or nature.One day Police asked me to appear at station and when I went their they said a case has been filed due to a complaint from a person and they were searching for me. When I asked the details they read out the statement which described to transactions which were happening from 2002 to 2009 and I said I have to search for the files to give a reply. After a week I produced a part of the details which records payments made through cheques etc they said I have to come back when ever they ask to. After that I approached a lawyer and he communicated with them and sorted things out apparently. After that lawyer called me up and said the complaint has been reffered. After six months a higher police offical summoned me again and said the case si being investigated uder a new team and asked for details again. I am confused and do not know whether would face arrest under 420 since it is non bailable. For the last two months I am under constant tension and lawyer says he has no clue about the case being taken up again. Pl advce what I must do. My questions are since there are lot of transaction with clear proof does it not fall under civil and how can a case which was apparently reffered can be reopened.Is it not manadatory to arrest some body under 420 and can the investigation get longer than one year.I was told that this case was registered aftera CMP was filed in the court. So Police have to give a report in court. and if they have to what is the time limit. Pl help I am in dire straits.


 9 Replies

Ravikant Soni (LAWYER IN JAIPUR)     09 November 2012

you didn't mention the actual transaction on which the complainant made complaint against you. 

Samar Garg (Trader)     09 November 2012

Narayan you should contact a good council immediately from day one, and whatever evidence you have to defend please make a good scan of all that in your computer, give a xerox copy to your council, keep 2-3 copies with you and put the original ones in a safe place. Consult your council, get a copy of FIR/MECR , go through the facts of case and if you find any manupulation or fabrication apart from the facts according to you, and if you have evidence to put your points on record, file a counter case against the party .


Meanwhile, with the help of your council draft the entire actual facts of the case put required evidence with it and file the same to the offices of SP or commissoner of police, local police station, human rights council, the cheif justice of high court of your state, the law minister of your state, the cheif minister of your state.


doing all this you might not get a clean chit from the current FIR but, this is help you to defend your point when the matter comes to court, and narayan according to the Crpc it is not mandatory to arrest an accuse unless the preliminary enquiry does not establish the accused person's involvement. But in India, the general practice is that once a FIR is registered & police is paid properly the rules and procedure codes are set aside and the police wala do their manmaani's only as per the direction of complainants. dont be in any dilemma that what is possible and what is not possible, if the court has ordered an enquiry under criminal act, you can even approach the court thourgh your council to put the facts in broad light. Your opposite party may have filled a Civil suite or recovery suite too.. ask your council to file a CAVEAT application in your city civil and sessions court in order to avoid Ex-parte declaration against you.


Always remember one thing that, in the view of law & justice what matters and be accounted is paper's/document/evidence or representatives of the acts, if you believe that tumare saath kuch galt horaha hai, you have to bring that on records by filing complaints / notifications / compliance in order to survive with honour.

Samar Garg (Trader)     09 November 2012

I am not a lawyer or practicioner, but i have my self faced this all so this is just a practical experience i am sharing with you. please pardon me if i am mistaken anywhere.

ADV S PATHAK (lawyer)     09 November 2012

when SHO closes a case after investigation that no offence is made out, complainant can go to SP for re investigation and SP can mark it.

the investigation can take as long as 3 years. if you are called for giving specimen signatures or you are asked to give the documents etc then it is confirm that your police challan will be presented in the court.

in such a situation apply for blanket bail.

rest will be proved or fail in court.

contrary to it if again nothing comes out in the re investigation then the complainant will go to court u/s 156(3).

shiv (HR)     10 November 2012




Narayan (proprietor)     10 November 2012

I was running a franchise of a leading institutional stock broking firm and the person here was registered as their client.Apart from doing equity business for him, I had done a lot of other serives for which ther are clear instructions and fees payable to me. Since the matter of transactions range from equity transactions to liasoning services for ten years it is difficult to gather all the data related to expenses related travel and other bills. The predicament is that some of the files are lost for ever due to shift of office and residence etc. How ever there are emails and other such commincations to suggest it. My lawyer is a young fellow and he is saying even though we have make the police understand it, due to lack of evidence on other services it can work against me. so pl advice what to do other than sourcing FIR . As far as I know they still have not given any report to the CMP in court and it is court record show that it is pending. Pl advice immediate step.

Narayan (proprietor)     10 November 2012

Thank you. I undertand that practical experience is the best school.

ADV S PATHAK (lawyer)     10 November 2012

mr narayan what i got is that u are sub-broker. the complainant is client and the dealings in equity and futures as well as commodity is done from your terminal. if i am right then

1. clients have acounts in ur computers maintained on daily basis as per the trasactions. so if he is still ur client then no matter how old his record is u will be having it.

2. if he is not ur client then calculate the period when he quit, his complaint and the period of accusation. ther is a law of limitation for recovery of amount.

3. why you need travel bills in shares trading on his behalf i can not understand.

4. what are the other services you provided him?

Narayan (proprietor)     10 November 2012

It is partly correct. The only thing is that in the present day system ,books of account are run by the main broker and sub brokers cannot issue contract note,cheque or any thing of the sort. Even the account statements are given by them. More over  after the crash of 2008 I stopped the business of equity on account of main broker stopping franchises and going alone .So now the statements data etc are with the main broker only which the complainant also is aware of.When we started in 2002 such thing was not there and we sub brokers could issue contract notes statement of running book etc and later on SEBI changed all that  and now we are just client sourcing people and local face of main broker but made to answer the clients on any issue with out data support. Then regarding services which were rendered there are lot of things like liasoning for certain needs like settlement of labour, arranging for loans from banks, making project report for  a big project etc. All these expenses and my fees( that is what is termed as travel etc)were informed when the business was on and now disowned by him. Then I am told that since he is raking up in the criminal category, limitation does not apply. More over the person is using political connection to hook me. The first enquiry by the junior police man was okay and he understood looking into my explanation and facts and figures.I hope this clarifies.Pl suggest any recource.

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