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10-Jan-2026 (In Criminal Law)
I committed a fraud while working in a private limited company. I placed an order for the product which was sold to another firm. Then the company asked me for payment. The total value of the product was 19,68,540 . Out of which I paid 10 lakh, I could not pay the rest, I have no money left. Now can that company take legal steps against me?
Based on your statement, the company may initiate both criminal proceedings (for fraud/breach of trust) and civil action (for recovery of the remaining amount) against you. Partial payment may be considered as a mitigating factor, but it does not absolve you of legal liability. It is advisable to seek legal assistance immediately and explore the possibility of settlement or repayment in installments to reduce further legal consequences.
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Adv. Aminuddin Khan
Adv. Aminuddin Khan
Kolkata | 25+ Answers
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Yes. The company can take criminal and civil action against you.
From what you described, you were an employee of the company and you placed an order in the company’s name, took delivery of goods worth ₹19,68,540, sold them to another firm, and paid only ₹10 lakh. This is not treated as a normal business loss. Under the Bharatiya Nyaya Sanhita, 2023 (BNS), this amounts to a criminal offence.
Under Section 316 BNS (Criminal Breach of Trust), an employee who dishonestly misuses or diverts company property commits a crime.
Under Section 318 BNS (Cheating), if a person dishonestly induces delivery of goods and causes loss, it is also a criminal offence.
The company can file an FIR against you and the police can investigate and arrest if required. Punishment can extend to imprisonment and fine.
Apart from this, the company can also file a civil case to recover the remaining ₹9,68,540 with interest and can seek attachment of your bank account or property.
Not having money does not protect you from criminal liability. Your best option is to try to settle the matter with the company and pay or agree on a payment plan before a criminal case is filed.
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Adv. Rehman Khan
Adv. Rehman Khan
Howrah | 25+ Answers
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Yes. The company can take both criminal and civil legal action against you.
Since you yourself admit that you committed fraud and caused wrongful loss to the company, the following consequences are legally possible:
1) Criminal liability
The company may lodge an FIR for offences such as: • Cheating
• Criminal breach of trust
• Forgery / misuse of position (if applicable)
These are serious offences and can lead to police investigation, arrest, charge-sheet, and trial. Payment of partial amount does not automatically wipe out criminal liability, though it can help while seeking bail or settlement.
2) Civil recovery
The company can also file: • A civil suit for recovery of money, or
• Proceed under summary recovery procedure, or
• Initiate insolvency proceedings if the amount and conditions permit.
3) Your practical options
If you genuinely have no capacity to pay: • Try to negotiate a written settlement or instalment plan with the company
• Request them to treat it as a civil dispute instead of criminal, if they are willing
• Preserve proof of the ₹10 lakh payment, as it will be relevant in your defence and mitigation
Courts do consider bona fide intention to repay as a mitigating factor, but it does not automatically protect against prosecution once fraud is alleged.
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Adv. Pallavi Saha
Adv. Pallavi Saha
Barrackpore | 50+ Answers
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Yes, the company can definitely take legal action against you. From the facts stated, both criminal and civil liability may arise. If you placed an order in the course of employment and the goods were sold to another firm but the payment was not fully made, the company may allege cheating, criminal breach of trust and misappropriation, depending on intent and documents. An FIR can be lodged if dishonest intention is shown from the beginning.
Apart from criminal proceedings, the company can also file a civil recovery suit to recover the remaining amount along with interest and damages. Partial payment of ₹10 lakh does not automatically absolve liability.
However, mere inability to pay due to financial difficulty is not a defence in criminal law unless you can show absence of fraudulent intention. Your protection will depend on employment terms, authorization to place orders, flow of money, and documentary proof.
It is advisable to seek immediate legal assistance, respond properly to any notice, and explore settlement or repayment through lawful means to reduce criminal exposure.
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Adv. Atanu Patra
Adv. Atanu Patra
Kolkata | 50+ Answers
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Yes, the company can take legal action. The facts disclose elements of criminal breach of trust and cheating, as the order was placed during employment and the goods were sold to another firm. Apart from civil recovery proceedings, the company may initiate criminal action under relevant IPC provisions. Partial payment does not absolve criminal liability. However, the final outcome will depend on evidence, intent and the role played by the accused.
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Adv. Sudhankar Ghosh
Adv. Sudhankar Ghosh
Bongaon | 25+ Answers
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