One Investor Cannot Accuse Another Investor Of Cheating If Business Runs Into Losses: Karnataka High Court

One Investor Cannot Accuse Another Investor Of Cheating If Business Runs Into Losses: Karnataka High Court

The Karnataka High Court has held that an investor of a company cannot file case for cheating against another investor if he loses his money because the company suffered losses.

“If the business has run into losses, where the investment of both the accused and the complainant was made it cannot be said that offence of cheating would ensue against the petitioners, who bonafide invest in the company and due to business losses the company comes down”, the court said.