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ARTICLE · 13 DECEMBER 2024

Failure To Pay Salary Is Not Criminal Conduct

Majmudar & Partners
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The former Chief Executive Officer of Safal Life Science (P) Ltd. filed a criminal complaint under Sections 420 (cheating), 406 (criminal breach of trust), and 34 (acts done by several persons with common intent) of the erstwhile Indian Penal Code, 1860 ...

IndiaEmployment and HR
Anant Joshi
Anant Joshi
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Background

The former Chief Executive Officer (the "Complainant") of Safal Life Science (P) Ltd. (the "Company") filed a criminal complaint under Sections 420 (cheating), 406 (criminal breach of trust), and 34 (acts done by several persons with common intent) of the erstwhile Indian Penal Code, 1860 (the "IPC") against Dasrathbhai Narsangbhai Chaudhary and others, former directors of the Company (the "Former Directors"), for non-payment of his outstanding salary and performance bonus amounting to approximately INR 14.7 million.

The Former Directors initiated proceedings under Sections 482 and 401 of India's erstwhile Criminal Procedure Code, 1973 (the "CrPC") before the Calcutta High Court to quash the criminal complaint.

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