A person who was acting as agent of a investment company invested money on behalf of his client in the company and deliver the receipt of deposit given by the company to his client. Thereafter company's businees came in question and supreme court appointed an receiver to lookafter all the matter such as claims of the investors and all. Thereafter one client of the agent filed his claim in year 2004 before receiver and also filed a complaint before CMM against the agent alleging that the agent is not refunding money and has cheated with collusion of the Management of Company.
Ld. MM issued summons only to agent (not the company management/director)U/s 420 stating that only (agent)accused is residing in jurisdiction and therefore summoned for trial of 420.
Note: All the original receipts are with investor and admitting that the money is not with agent and accused deposited money with comapnay and after maturity reinvested the amounts for which again a receipt was executed by company in his favour.
Please inform being the above said situation whether agent is liable for 420 and should be summoned. Kindly quote the percentage of chances to be quashed and supreme court judgements.
Rgds
