Withholding payment of Creditors by A Private Limited Company
I am a Trader trading in Rice Husk, saw dust etc. I am the supplier of husk as raw material to A Private Limited being one of the major vendors of husk to my trading firm. My firm has been supplying the raw material to the above company on credit which the company used to clear within 7 days from the date of bill. The process was smoothly going on till September, 2014. During September, 2014, abruptly such a turn took place in the working management of the company which adversely effected the trade interests. The new management took over the companies affairs clandestinely who did not carried over the commitments made by their predecessors with the creditors honestly. The pending bills towards supply of raw material by my firm which amounts to Rs. 57,41,942.70 as on 23.09.2014 is settled to the meager portion of less than 18 % till now by the new management of the company. The remaining balance of Rs. 47, 41, 942.70 is pending for past more than one and half year. The matter has time and on been taken up with the management who initially assured its clearance within a month’s time and thereafter has become reluctant to it. The entire credit amount is showing in the Balance Sheet under the head trade payables and the schedule covering list of sundry creditors as on 31.03.2013 and 31.03.2014 (relevant extract of Balance Sheet is attached). The amount is huge and the vendor company has withheld the payment for more than one and half year which has caused financial problems to my firm to smoothly propagate the activities.