IBC Code: Complete Overview and Drafting Workshop. Register Now!
LCI Learning

Share on Facebook

Share on Twitter

Share on LinkedIn

Share on Email

Share More

Prakash   16 July 2021

Criminal Compliant

Is it possible for the new MD to withdraw the criminal complaint filed against the delinquent employees, by the previous MD in a Public Limited Company..?
Kindly throw some light into this.


 10 Replies

G.L.N. Prasad (Retired employee.)     17 July 2021

It depends on the seriousness of the case and the allegations involved.  A formal application can be filed for withdrawal and the police will be too pleased and guide the complainant in withdrawing the complaint, as they can reduce the burden.   Diluting evidence is the next option so that the police can close themselves treating complaints as false.

Prakash   17 July 2021


It's ok. But whether the new MD can withdraw the complaint filed by his predecessor..? New MD is competent to cancel his predecessor's decision on this or what..??

But if both MDs, new and old are having different views on this.

G.L.N. Prasad (Retired employee.)     17 July 2021

The fundamental issue is involved the discretionary powers of such MD and understanding the real issue, and recording specific reasons that are justified in withdrawing the complaint.

Manoj Chaudhary Advocate   19 July 2021

withdrawal of complaint and capacity to withdraw the same totally different. nature of offense and stage of pendency also play role. who are you? are you MD of the delinquent employee? in both scenario, the course of action will be different. if you want exact advice, better call me on 9310155557

P. Venu (Advocate)     20 July 2021

Who made the complaint? Was it made by the former MD in his official capacity or in his personal capacity? As per the complaint, who is the victim, the former MD or the the company?  Has the complaint led to a FIR being registered? If so, what are the offences registered? 

Prakash   20 July 2021

For Fraud, Cheating, Misappropriation etc. MD has lodged the complaint in his capacity as MD of the company. There is every chance that the MD is replaced and the new MD has a lenient view towads the wrong doer staff members.The allegations are of seriius nature and amount to cognizable offences u/sn. 403,405, 408, 420&120b.

P. Venu (Advocate)     20 July 2021

How could a person holding responsible position take a lenient view of FRAUD, CHEATING, MISAPPROPRIATION etc.?

Prakash   21 July 2021

Yes, that's the pertinent issue here. Whether law prevent him from doing so or not, that's my query. I'm batting for the MD who took stringent action against the delinquent staff members, but preferably under a legal umbrella.

P. Venu (Advocate)     21 July 2021

Any suggestion depends upon present status of investigation and trial. If charge-report has been filed, trial has to take place since some among the offences are not compoundable.  However, the accused would be acquitted if the de facto complainant diawn the complaint and the prosecution witnesses turn hostile. 

Prakash   21 July 2021

Company is the victim and the suspension was initiated by the MD in and as MD. It's an offence against the company-from forgery to mispparopriation.

I think the new incumbent as MD (MD not yet changed, but. In case an MD having allegiance to the wrong doers comes in) cannot withdraw the complaint or let loose the delinquent staff members as the shareholders will raise their eyebrows against any such move.

Leave a reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Post a Suggestion for LCI Team
Post a Legal Query