PLEASE PRIVIDE YOUR VALUABLE INPUTS FOR THIS CASE: Gagan set up company ABC as promoter director. Though he resigned as director later, held majority 60% of the shares of ABC. Ratan bought company ABC when all shareholders (including GAGAN) agreed for his price offer. Ratan signed agreement with directors of ABC and gave PDCs to all shareholder and became 100% owner of ABC. After one year, Ratan made allegations of cheating in valuation of the company and demanded revaluations. All shareholders agreed and a revised agreement is signed between Ratan with former director of ABC. Revised cheques were issued to all shareholders without taking back security cheques. Gagan presented PDCs given as security cheques for clearance instead of new cheques as per revised agreement. Security cheques bounced. (As a result, Gagan didn’t get even the reuced price as per revised agreement) GAGAN didn’t sign either of the agreements as he was not a director. CAN GAGAN BE CHARGED UNDER 420 WITHOUT ANY WRONGFUL GAINS? Mere intention of cheating attracts IPC 420?
