Legal Question in Business Law in India

non payment of Credit

A friend of mine runs a propriety firm and due to mismanagement of funds has gone in a loss of 14 lacs he plans to pay back but needs time with creditors how should he handle and what are the legal consequenceis if they file a suit against him. Kindly advice


Asked on 10/21/08, 5:03 am

2 Answers from Attorneys

Aniruddha Pawse Aniruddha.P.Pawse Advocates

Re: non payment of Credit

They can recover from properties even private as the business is proprietor. He can request creditors to give time for payment if he honestly intends to pay otherwise declare himself as insolvent or bankrupt.

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Answered on 10/26/08, 9:50 am
Sudershan Goel India Law Offices of Sudershan Goel - Advocate

Re: non payment of Credit

one may consider declaring 'bankruptcy' by filing a petition for 'insolvency' in the local court.

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Answered on 10/21/08, 6:41 am


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