Company Law Board (CLB) and Delay
Querist :
Anonymous
(Querist) 20 May 2011
This query is : Resolved
Hi, I am NRI and was cheated by a old friend in India. A hotel business was started under a private limited company in 2005 with our own funds, funds from our family and friends, and bank term loan. Since I live in USA, my mother-in-law was appointed as one of the directors. The other director was this bad friend of mine. This guy did not invest any money, nor has financial resources. But he was given 40% share in the company under sweat equity. Even for the bank loan we pledged our property as security. But this old bad friend has been looking after the business and has been not showing the accounts and sharing profits. Literally he occupied the hotel business threating us with false cases. The case is pending in CLB. But this is taking long time. Is there any other legal mechanism to release our security with the bank and recover our investment, if not takeover of the business?
Thanks in advance!!
Advocate. Arunagiri
(Expert) 20 May 2011
What is the grounds of the case pending in CLB?
If you have pledged the properties, you can not release it without settling the dues.
