Sridhar V Sridhar (Employee) 17 August 2023

15 check bounce cases were already filed against a builder

A builder collected money in pre-launch of a apartment project. Builder failed his commitments including repayment of amount to its customers.

As of now 15 customers already filed check bounce cases in different courts against a builder. I am also having a check as a customer.

Even he is not caring about cases, moreover he is feeling good, he got time and low interest pay obligation.

I have paid through check on his company name. He also gave me the check of his company, signed by one of the director. It's a private limited company. All his family members are directors in it.

My question is;

1. Who is liable to repayment, company alone or current directors or the directors inforce when I make transfer or all ?

2. To what extent they are liable to repayment, restricted to company properties or extended to personal assets of all directors? Do this cover already transferred properties wantedly?

3. Still he is collecting money from the innocent public. How can we stop him to cheat more public. Can we file PIL with compilation of all the cases to stop him from collection of money from public even more, immediately?

Policemen saying there are only 420 cheating case exist for this issue, which is bailable, not worthy to file it.

Please suggest me, in what way do I take strong action against my builder.

Thanks you,

Sridhar

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2 Replies

Naresh Kumar 17 August 2023

In the situation you've described, here are some suggestions and insights:

Liability for Repayment: In cases of a private limited company, the liability for repayment is generally limited to the company itself. However, if it can be proven that the directors were involved in fraudulent activities or acted negligently, they could potentially be held personally liable. This could depend on the specifics of the case, including the involvement of the directors at the time of the transaction.
Extent of Liability: Generally, the liability of the directors is limited to the company's assets. Personal assets of directors are not automatically at risk. However, if it can be proven that the directors used the company to deliberately defraud creditors, the "corporate veil" might be lifted, and personal assets could be pursued. The transfer of properties could also be scrutinized if it's found to be an attempt to evade repayment.
Stopping Further Cheating: To prevent the builder from defrauding more people, you might consider taking legal action. If there's evidence of ongoing fraudulent activities, you could consult with a lawyer to explore options like seeking injunctions, filing a criminal complaint, or initiating a consumer protection case. A Public Interest Litigation (PIL) might also be an option, but it requires specific conditions to be met and should be pursued under the guidance of a legal expert.
Law Enforcement: If local law enforcement authorities are not taking appropriate action due to their assessment of the case, you could consider reaching out to higher authorities or relevant regulatory bodies to escalate the matter. Gathering more evidence of the builder's actions could strengthen your case.
Legal Counsel: Given the complexity of the situation, it's advisable to consult with an experienced lawyer who specializes in property and corporate law. They can help you navigate the legal nuances, assess the strength of your case, and guide you on the best course of action.