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Chandrasekaran Muthusamy   21 October 2015

Fraud interpretation

My company , the Customer, while getting into Purchase agreements with the Supplier Organizations binds the Supplier to a 'Fraud Policy' which provides for debaring the Supplier in case he indulges in a Fraud for a period varying from one year to three years. We are facing a situation in which the Supplier has indulged in fabrication of some quality documents, because he lost the Original one, but not with the intention to supply a sub standard product as the subsequent testing of the material to be supplied showed Question A deception or fraudulent act but not with the intention to cause loss to the Customer or make a financial gain for himself(in a supplier - customer context) be termed as a Fraud in the overall context


 3 Replies

SAINATH DEVALLA (LEGAL CONSULTANT)     21 October 2015

In lawfraud is deliberate deception to secure unfair or unlawful gain. Fraud is both a civil wrong (i.e., a fraud victim may sue the fraud perpetrator to avoid the fraud and/or recover monetary compensation) and a criminal wrong

Nitish Banka (lawyer)     22 October 2015

Dear Sir,

Is there is unlawfull loss or gain, that is the basic ingredient of fraud.

Warm Regards,

Nitish Banka

9891549997

 

Chandrasekaran Muthusamy   22 October 2015

Nitishji There has not been an established gain for the Supplier Organizations or a loss for the Customer Organization. The issue is about fabrication of a document that was apparently lost and required to be submitted as per the Contract

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