Attachment to a persons share holdings by a decree holder against
I am about to receive a decree for payment on a firm. The said firm has 3 partners. They have lots of fixed and liquid assets on their name but almost all of their fixed assets are mortgaged to banks, I will only get 2nd charge with respect to these assets. The same 3 people are directors and shareholders in another company, which has a huge bank loan, but makes profits. Can I make an attachment to the shares they own of that company and come into their shoes as a director?? They are the promoter directors of that company.
Asked 3 years ago in Property Law from Guntur, Andhra Pradesh
1. Yes first file an execution proceeding stating the list of his assets.
2. In the list of assets give the details of shares as well.
3. Apply for attachment of the properties mentioned in the list so the property may not be transferred during pendency of the execution to frustrate your claim.
4. You will get justice
1) on obtaining decree against the firm you can execute decree against the firm
2) If property of partnership firm is insufficient to meet liabilities, personal property of any partner can be attached to pay the debts of the firm.
1) Once you get a decree it will have a description of what can be attached if the debtor fails to pay up.
2) You need to make a petition for execution. Of the Decree and in that mention about the assets in terms of shares in another company.
3) on becoming the director will depend on the way the the stocks are transferred. You need to adhete to the laws governing the company in which the shares are.
If the dues are against a firm, then only that firm's assets (movable and immovable properties) can be taken up through execution petition. The directors of that company maybe partners but this company has nothing to do with that company hence it will not be held legally valid to attach that company's profits or assets to recover your dues from this firm. Even their personal properties may not attract attachment options.
The decree is for payment, according to you, on the firm. So you can attach their assets only to the extent they own it in the firm. Shares held by them in any other company cannot be attached/
1. The decree you are expecting must be against non payment of dues to you by the partnership firm represented by the three partners,
2. If you get 2nd charge on the properties of the firm and not in a position to recover your dues, then you can certainly pray for attchment of shares of the partners in another Company,
3. Fle an application praying for inclusion of the said shares in the ensuing decree to be issied by the Court being expected by you.