Question

Read, analyze, and give suggestions :

A- is Indian National.

B- is Scrap Company

A is working in an advertising and printing Company and he is an authorized person who has the power to sign on behalf of the company. A decided to invest using his own money in other business away from the company he is working and his owner.

A has interred in to a contract with B to purchase a quantity of scrap for thirty thousand RO. A paid to B ten thousand RO cash as an advanced payment, and for the remaining amount (twenty thousand), A provided a postponed check withdrawn on the name of the company where he is working for. B has delivered to A the Scrap.

On the due date, the check has bounced when it was presented to the bank, for insufficient funds. B presented the check to the police and the case was referred to the court.

Answer 1

A is at fault on multiple counts:

1. As a fiduciary, he shouldn't have engaged into a separate buisness without informing the company.
2. He should not have misused the authorized signatory power asigned to him.
3. He should not have issued the check withdrawn on the name of the company where he is working for, for an activity separate from the company.

A therefore is guilty and the advertising and printing Company must take action against him. Depending on the severity, the company should fire him as well.

Company B should recover the money from A.