Legal Question in Credit and Debt Law in India

1.My company where i was an employee was under disputed debts yet the company court awarded an order of wind-up in favor of a private creditor and when appealed the bench stayed with a condition to pay a sum of Rs.75 lakhs without going in to the merits of the case and the amount was not paid.

2. A charge holder on the Assets of the company M/s.Uco bank had filed a recovery through DRT/Chennai.

3.The private financier never executed the order and the stay continuous and at the same time no one can go inside the company due to the WP order and the company assets are unprotected and un-maintained now for 3 years.

Now how to get over the situation as the company has no money to pay but can run a profitable business if left to run.Please advise.


Asked on 3/30/14, 12:49 am

1 Answer from Attorneys
Fca Prashant Chavan Expert Edge LLP

30.03.2014

Dear Sir / Madam,

The Company cannot initiate any action till DRT recovery proceedings are completed. If at all the Company can run a profitable business if left to run, how come it has got itself into a "tight corner" with no funds. It clearly goes to indicate complete mismanagement by the Company and its Directors in the past.

Regards,

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Answered on 3/30/14, 4:08 am


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