Issue a legal notice.
If no heed is paid by them then you may file a summary suit for recovery of the amount.
Regards
Shareholder claiming return of unsecured loan
I resigned as a director of a private limited company in August 2017 but continue as shareholder. I own 24% shares while other 2 directors own 38% shares each. The MD had given me in writing on company letter head that I would get a specific percent ROI per month for invested amounts in shares and unsecured loan. I have not received anything since July 2017. I've been asking for refund of unsecured loan since August 2017. What is the procedure to get back my unsecured loan at the earliest. Best regards Prashanth
Asked 6 years ago in Business Law
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13 Answers
Issue legal notice to company seek return of unsecured loan
2) if company fails to pay file summary suit to recover loan amount with interest
3) you can also file winding up petition against company
Hi, it is advisable to serve the company a legal notice asking your share alongwith interest accumulated upon the due time within 15 days .. If they fail to comply with the notice , you can file a recovery suit in court against the company and its directors
Hi,
The directors of the company are not allowed to give any loan to the company it is evident from your query that you are share holder and promotor directors you are holding 24% of your share capital besides other directors are holding 38 percentage in case you do not want to continue with the company as director you resign from the company and let the other directors purchase your shares the book value. Your shares should compulsorily be transferred to the other directors first and in case it is allowed in the board resolution then you can transfer your shares to any third party.
Send a legal notice to this Co. for recovery of your dues pending w.e.f. July, 2017.
If the above fails to help, you can approach the National Company Law Tribunal by way of moving an petition under the Insolvency and Bankruptcy Code for recovery of your dues.
Need to see the letter in details so that a clear reply can be framed accordingly
Dear Client,
On what terms, investment made on shares and unsecured loan ?
Writing of Letter Head ?
Issue legal notice for release of ROI as per terms, failure to do so, file claim/recovery In Company Tribunal.
How long does it approximately take to resolve once winding up petition is filed against the company for not repaying the unsecured loan.Anything else to be specifically ensured or taken care of while filing winding up petition against the company??
Asked 6 years ago
1)you have to issue legal notice for winding up . if company does not pay then file winding up petition. it will appear on board for admission within one year
2) if company does not want to be wound up it will settle your dues
Once you escalate this NCLT, the case has to be resolved by the company tribunal within 180 days either by sale of assets of the co or by revival or winding-up of the co.
Winding Up ?
How can it will processed in ur case,
There`s a difference between unable to pay and unwillingness/default to pay.
Creditor may seek winding up of company, if company unable to pay within in 21 days of demand,
AND in ur case, it is inferred that company has refused to pay by evading ur claim,
Hence, recovery of and regular release of ROI is issue which need to be sought in relief and if the company shows it inability to pay than winding up issues comes.
It will take around a year or so.
Contact a local lawyer and based upon the facts of the case necessary strps and documents required will be told to you.
Regards
You can send a legal notice invoking the clauses of the agreement entered while exiting the company, in this regard.
You can demand your lawful claim to be paid within a time stipulated in the legal notice failing to which you may initiate further legal course of action either through summary recovery suit or by any other appropriate provisions of law applicable to this situation.
How long does it approximately take to resolve once winding up petition is filed against the company for not repaying the unsecured loan.Anything else to be specifically ensured or taken care of while filing winding up petition against the company??
Winding up petition is another case before court and it will take its own time along with the other cases, hence it cannot be predicted,.
Winding up of a company is the process whereby its life is ended and its Property is administered for the benefit of its members & creditors. An Administrator, called a liquidator is appointed and he takes control of the company, collects its assets, pays its debts and finally distributes any surplus among the members in accordance with their rights.”
The Company Court cannot be “maliciously” used as a “debt collecting agency”, and that “an action may lie in appropriate Court in respect of the injury to reputation caused by maliciously and unreasonably commencing liquidation proceedings against a company and later dismissed when a proper defence is made out on substantial grounds.” This judgment may ensure that a winding-up petition is scrutinised more carefully before it is admitted.