Directors would not be personally responsible for payment of debts of company unless they have given personal guarantee 

2) I presume there has been no misappropriation of funds 

3) suit if any has to be filed against company for recovery of dues . 

1. Directors can initiate insolvency proceedings or request the creditors for restructuring the amount for longer term periods.

2. Creditors can take legal action oi recovery of their "unsecured amounts" via a Civil Court suit, but they cannot threaten which is a criminal offence.

3. Persons in the capacity of Directors, will not be able to claim relief under the Senior Citizens laws, for relief on monetary dues, BUT can definitely make Police FIR against such threatening, intimidation, mischief etc.... 

Now you should summarized Bank loan and creditors list according the amount wise. Here you have just mentioned 55-60% can be paid and bank loans will be full paid.

Need to know the ratio of all creditors including bank. if bank loan are more than I will just first clear creditors and later on ask bank to windup loan and if you could start new business pay bank principle amount.

You need to declare bankruptcy in that case. There is no other solution. 

Hi 

Since it is a private limited company, the directors(your dad and uncle) are responsible only to the extent of their share capital , subject to them taking the following steps:-

Option 1:- If the total debt due from the creditors to all the borrowers exceed Rs1Crore:-

The company can on its own, file a petition under section 10 of INSOLVENCY AND BANKRUPTCY Code at National Company Law Tribunal and implead the borrowers as opposite party.

National company law tribunal will after ascertainment of facts will admit the petition and then appoint a resolution professional who will collate data of all assets and liabilities and explore options for resolution or liquidation of the company assets and then pay the borrowers. 

In this procedure, financial creditors will get atleast 50% of their monies back and operational creditors(suppliers, tax authorities) will get atleast10% of their monies back. 

The creditors will NOT have any recourse thereafter to promoters (your dad and uncle) . 

Option 2: If the total debt due from creditors to all the borrowers is less than Rs1Crore:

Any one of the Director can file petition under Provincial Insolvency Act in the District court having jurisdiction over the registered office of the company. 

The court will ask for counter/written statement from all the creditors to arrive at the final amount owed to creditors.

The court will also appoint a liquidator who will then take control of all the assets and then liquidate the assets of the company and then distribute the monies to Creditors. 

The creditors will not have any recourse thereafter to the promoters.

Please note that if the promoters have given any personal guarantees to any creditor, the promoter should negotiate with the creditor and release themselves from personal guarantees in both the approaches.

Hope this information is useful. 

If the company does not have enough fund to pay off all the creditors then it is prudent to file Insolvency proceeding under Insolvency and Bankruptcy Code before the NCLT.

In the said proceeding the Tribunal can appoint RP to take charge of the company and assign the same to a new company to distribute the fund and restructure the company.

So act accordingly.

Creditors can file recovery suit, which will take years.

Being senior citizen, no leniency. Let them go to court. Your father and uncle will get enough time as recovery case takes years. 

And if you are thinking to declare bankrupt than they have to disclose all their assets in court and after selling everything, court may declare them bankrupt. So not advisable.

Forced recovery and threatening to recover amount are an offence. Can complain to police.

1. See directors are not responsible for the company funds . They are only responsible if there is misappropriation of funds or are personal guarantors in any loan.

2 They can initiate an insolvency petition  before the NCLT. 

3. In case they want to run business then settling with creditors and restricting the bank loan is option.

Money is to be paid..

There is no law that could save one from paying debts.

Still if they are not registered as financial society then they cannot credit loans to someone,  so they gave you money for interest than it is illegal. But if they invested in your father's company than they have given the money legally. 

Dear Sir/Madam,

One thing is not clear from your query as to what assets were sold by you and what's next program or course of action. If due to suffering loss, you have sold the assets, then you are suggested to go for insolvency proceedings before NCLT as given in IBC, 2016. If you are willing to continue the operations of the company, then start writing humble letters to creditors and beg some time to repay the money with interest.  

if the company is still not wound up, your father and uncle, as corporate debtors apply under the IBC for insolvency resolution by filing an application with NCLT

They will have to wait otherwise you may file for bankruptcy. There is no ther way. You may take a loan if your credit is good.

They may file an insolvency petition before the District Court of the area or before High Court as the case may be. surrender before the court is only an option in this situation.

You have to pay back the loan borrowed from creditors either in cash or by kind.

You can seek time to settle their dues.

If they don't agree or give time you may ask them to proceed through court.

In court you will get time to settle the amount that too on your request you can settle the same in installments.

An incorporated company files bankruptcy if the company is insolvent (i.e., its debts exceed its assets) (i.e., the company's owners) feel that the business cannot continue. A business usually cannot continue because it cannot pay its creditors in the normal course of business.. 

A Director cannot be held liable personally for Company's debts, unless he / she gives personal Guarantee.

Creditors can file case against the Company only and not against Directors personally.

Unless there is personal involvement in the form of Guarantee / Surety by the said Directors, they are not liable.

1. If your father and uncle are not in position to pay off all the debts then they should file insolvency petition in court. 

2. The petition should be filed Before district court under Insolvency and bankruptcy code.

3. In this they have to provide details of all assets and liabilities.

4. Court will appoint reciever for liquidation of assets and distribution among creditors.