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Legal status of joint venture

(Querist) 30 July 2014 This query is : Resolved 
Dear Seniors,

Two private limited companies has formed a joint venture for the specific purpose "construction of independent houses/villas/Residential apartments". For this they entered to into joint venture agreement with 50% each party share. And Rs.8 crores(4+4) brought into the joint venture bank account and started construction of villas.

30% of work completed and they applied for bank funding of Rs.15 crores for further construction.Here banker is questioning that there is no legal existance to the joint venture like company/partnership firm. Can any one give a write up on the joint venture legal existence for banker's querry.Awaiting for your valuble write up.

Thanks & regards

Ksreddy.
Devajyoti Barman (Expert) 31 July 2014
Commercial query..
Take professional service..
Guest (Expert) 31 July 2014
You are auditor of which company of joint venture? Also, whether they registered any partnership firm or private limited company of the joint venture?
Advocate. Arunagiri (Expert) 31 July 2014
Two companies can enter into a joint venture. This is legally valid. You have to produce the exact reply given by the bank for rejecting the loan.
Rajendra K Goyal (Expert) 31 July 2014
Commercial query.
V R SHROFF (Expert) 31 July 2014
Commercial query..
Take professional service..
ajay sethi (Expert) 31 July 2014
commercial query
Dr J C Vashista (Expert) 01 August 2014
Commercial query, engage a local lawyer
T. Kalaiselvan, Advocate (Expert) 02 August 2014
If two companies have entered into joint venture, that is the legal document to prove the joint venture, however, if you have not made the agreement in writing or not in accordance with the procedure, you may consult a local consultant in this regard and proceed as per his further advise.


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