Yerram Vijay Kumar v. The State of Telangana & Anr.
Background
After being voted out as directors, two men were criminally prosecuted on a private complaint alleging fraud under the Companies Act and IPC, following a boardroom dispute.
Decision Breakdown
The Supreme Court held Companies Act fraud offences (Sections 447/448) cannot be prosecuted on a private complaint, only the SFIO Director or an authorised government officer can do so, and quashed those charges, while letting the separate IPC charges (cheating, forgery) proceed in the ordinary criminal court.
Lesson Learnt
A private citizen cannot personally file a criminal complaint alleging corporate fraud under the Companies Act's fraud provisions, only SFIO or an authorised officer can; ordinary IPC offences from the same facts can still proceed separately.