Land sold by director in his personal capacity
Nikhil Bhansali
(Querist) 03 November 2012
This query is : Resolved
I am working with pvt Ltd Company engaged in Construction Business. The company is being formed between 2 groups. Both group holding 50% shares and having equal number of Director.
3 year back Director has entered into Sathe Karar for Construction of Gala on the said Land and as per said agreement he transferred the land into Company for Construction of Gala. For the said transfer of Land he had withdrew the funds from the Company. But the said Sathe Karar is neither signed nor registered. But Company has entered in 11 MOU's with the parties from whom advance against Gala is taken. In said MOU it is mentioned that Director is agreed to Transfer the Land into Company once a Director receive NA certificate for the said Land.
Afterwards, Land appreciated more than 3 times and Hence Company decided to sell Galas to another Party at higher price and to return back money of those investor who have booked the Galas. But, Said Director who was the previous owner of land transferred the Sale proceed of Land in His personal account instead of Company demanding that He is the owner of land. and Transfer the proceed towards development in Company's Account?
In reference of Above, we have following queries
1) Can a Company considered as True Legal Owner of Land as Per Sec 53A of Transfer of Property Act? as Director has withdrew the fund against Land transfer,again, he has agreed from time to time in all MOU's that he will transfer ownership of Land to Company as and when NA certificate is received. All municipal taxes in last 3 years paid by Company.
2) What action can be taken against the Director for Misappropriation of funds of Company as Per Companies Act?
Please resolve the queries
Devajyoti Barman
(Expert) 03 November 2012
1. Yes, it is the Company which would be presumed to be its owner.
2. File 406, 420 IPC case against the Director.
Nikhil Bhansali
(Querist) 03 November 2012
Dear Mr. Devajyoti,
Thanks for your Reply.
1. But recently I read somewhere that, Agreement to be register to avail the benefit of Sec 53A of TPA. and said agreement is not registered. But, he has done other act which clearly emphasis that he was suppose to sell land to Company
a. He withdraw the funds from company against Land
b. Said land shown as Asset in Books of Company and he has signed the Balance Sheet
2. Can another Director of company file case of 406, 420 on behalf of Company?
Thanking you in anticipation
Devajyoti Barman
(Expert) 03 November 2012
Yes, another Director file such case on passing of Resolution by the Board of Directors.
If the sale is not registered as yet then cancel the agreement.
