Winding up petition

Gaurav Gujrati (Querist) 08 September 2015 This query is : Resolved
Sir,

If the company takes loan from the private bank and that bank is also shareholder of the company and thereafter the company fails to pay their loan amount in spite of various request made by the bank. In that condition can bank file a petition for winding up of the company for recovering their loan amount ????

Thanks & Regards
Gaurav

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P. Venu (Expert) 09 September 2015
Why "if"? Is this a real-life query?

Rajendra K Goyal (Expert) 09 September 2015
Is the Bank majority share holder? Bank can start recovery proceedings.

Biswanath Roy (Expert) 10 September 2015
When a Debtor Company unable to pay its debts to the Creditor in that event Winding up petition attracts for recovery of debts according to Companies Act. The word "unable to pay" is the significant criteria here. Even if the Bank is one of the share holder of the company such position cannot be the bar for filing winding up petition.

KUMAR JAGADEESAN (Expert) 10 September 2015
I agree with Mr.Roy. Option to proceed under SARFAESI is also there for the Bank

T. Kalaiselvan, Advocate (Expert) 18 September 2015
Agreed with the experts views. The bank can very well proceed with recovery action whieversuits best for it, .e., winding up or sarfesi recovery.