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ruben (Lawyer)     25 February 2015

Agreement for repayment of misappropriated funds

An employee misappropriated funds from a business and resigned from the job. Later, the owner of the business found about the misappropriation. Upon confrontation, the employee admitted the liability and agreed to payback the amount and begged not to make a police case. The owner is ready to avoid making a police complaint. But to assure the repayment, he is seeking to make a contract stating all these facts .

Will such an agreement which states about repayment of misappropriated funds be valid considering, misappropriation is an offence under IPC?



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 6 Replies

Advocate Kappil Cchandna (Expert Bail & Criminal Defence Lawyer at Delhi Supreme Court of India)     25 February 2015

Dear, Enter into a settlement deed rather .... Kapil Chandna Adv 9899011450

G.L.N. Prasad (Retired employee.)     26 February 2015

Admitting in writing that there is misappropriation.

Advocate Ravinder (Advocate/Attorney)     26 February 2015

No, first you have to file a Police complaint and then FIR has to be registered. Let him get bail.  Then enter into compromise as soon as he hands over the money to you in whole and not in part.  Till he hands over the money, the case will continue.

 

If he is ready with the money, you can enter the compromise in the Police station only as the offence is compoundable nature.  In this case there is no need to file FIR.

harshit saxena (student)     28 February 2015

It's valid contract... Criminal Misappropriation is compoundable offence at peril of person whose property is misappropriated...

harshit saxena (student)     28 February 2015

It's valid contract... Criminal Misappropriation is compoundable offence at peril of person whose property is misappropriated...

T. Kalaiselvan, Advocate (Advocate)     02 March 2015

If he is ready to execute an agreement to this effect, you may add the words to the effect that he, in the event of default in payment, will be liable for prosecution under criminal laws too besides recovery through civil law.  This will protect your interests.


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