Criminal proceedings against the Directors - Nature of financial...

Criminal proceedings against the Directors - Nature of financial transactions - vicarious liability - The High court found that the allegations, if proven, constituted criminal offenses, including cheating and misappropriation of funds, which are distinct from mere civil disputes over financial transactions. - The court clarified that directors could be held responsible if they were directly involved in the fraudulent activities of the company, rejecting the argument against vicarious liability in this context. - The court observed that the appointment of a provisional liquidator did not preclude the initiation of criminal proceedings by the complainant company. - The court concluded that there was no abuse of process and that prima facie, the allegations warranted a trial.