Ruhi, Managing Director of Forever Sisters Private Ltd, was the founder of the Company along with her sister and few other friends. The Company was doing well initially, they had raised few rounds of funding from angel i

Rule 30 of the Companies (Mediation and Conciliation) Rules, 2016 provides the provision relating to Matters that are not to be referred to the mediation or conciliation. As per rule 30, the following matters shall not be referred to mediation or conciliation, namely: (a) the matters relating to proceedings in respect of inspection or investigation under Chapter XIV of the Act; or the matters which relate to defaults or offences for which applications for compounding have been made by one or more parties. (b) cases involving serious and specific allegations of fraud, fabrication of documents forgery, impersonation, coercion etc. (c) cases involving prosecution for criminal and non-compoundable offences. (d) cases which involve public interest or interest of numerous persons who are not parties before the Central Government or the Tribunal or the Appellate Tribunal as the case may be. In view of the above said rule, it can be said that Ruhi will not be able to get the case settled through Mediation or Conciliation as the investors have filed a case for the fraud against her. Cases involving serious and specific allegations of fraud, fabrication of documents forgery, impersonation, coercion etc. cannot be referred to mediation or conciliation, as per Rule 30 of the Companies (Mediation and Conciliation) Rules, 2016.