liable to prosecution ?
fulltrottlle
(Querist) 27 August 2009
This query is : Resolved
sir/madame,
my co entered into buying contract with an mnc importer.After not being able to deliver the products on time,we sent them mail stating that these products will now be invoiced directly to other buyers for whom we had initially ordered for.Then came price variations due to forex changes which were never confirmed by us as the prices on contracts were indian rs only.After seeing all these issues,the importer requested to change the purchase order of one buyer and other buyers orders were supplied to us with increased prices that we paid them for. unfortunately,the buyer who bought goods directly from importer defaulted on payments after having issued cheques as per the terms of purchase orders.Another issue cropped up is that we may have changed the PO from this buyer probably before the importer confirmed the same in writings but orally it was agreed by one of its employer.The importer has initiated the proceedings u/sec 138 and even threatened us with action for cheating and criminal breach of trust. as we had on intent to harm being a reputed firm, can we still be tried for ? can the case become criminal at all ?
Arul Kumar
(Expert) 27 August 2009
As far as Sec. 138 is concerned, your company cannot be tried as there was no liability from your part. It is the buyer who has issued cheque in favour of the Importer and subsequently the cheque was bounced.
fulltrottlle
(Querist) 27 August 2009
thank you very much for your reply for sec/138. but sir , please advise if my company may be tried for criminal breach of trust or chaeting ?
Arul Kumar
(Expert) 31 August 2009
Since you have notified in witting about direct invoicing by the importer to the buyer, they cannot take action on the ground of crinimal breach of trust or cheating. Even if they initiate any action on these grounds, you can very well establish your position in the court of law.
fulltrottlle
(Querist) 31 August 2009
dear sir,
thank you very much for your reply.
only thing that worries me is that i only noified but actual written confirmation from then came later even after me hving obtained Purchase Order from buyer !does this make my side weaker anyways ?
