My business partner is misusing company funds in New Delhi — what legal action can I take?
PR Asked by Pradeep Naidu from India
Quick Answer
Misuse of company funds by a director or partner is actionable under the Companies Act, 2013 (for companies) or the Indian Penal Code for criminal breach of trust and cheating.
Detailed Legal Analysis
Misuse of company funds by a director or partner is actionable under the Companies Act, 2013 (for companies) or the Indian Penal Code for criminal breach of trust and cheating. You can file a petition for oppression and mismanagement under Sections 241–242 before the National Company Law Tribunal (NCLT), and criminal complaints before the magistrate in New Delhi.
Appeals from NCLT lie before the National Company Law Appellate Tribunal and the Delhi High Court under Section 61. Operational compliance in Delhi also requires Shops and Establishments registration under Delhi Rent Control Act 1958 for the premises.
A forensic audit and interim relief may be sought. Document the misuse with financial records before initiating action.
Disclaimer: AI-generated for educational purposes only. Does not constitute legal advice. Consult a qualified practitioner.