22 November 2020
I have a decree debt against a company through arbitration award. The debtor company has filed petition under section 34 to set aside the award.The case is still pending after 5 years. Meanwhile Directors are transferring its profitable business to sister companies,which they control, and conduct the original business through these sister companies. The debtor company has almost closed down with hardly any assets left. Intention is not to pay up my debt,it seems. Proof for these fraudulent acts of the company are available through the company's public documents like B/Sheet.
Frauds like the above are described as "phoenixing" and mentioned in Para 33 of the ‘Offences & Penalties’ section of MCA website
What should I do while the section 34 appeal is pending ?
23 November 2020
You have to execute the Award passed by Arbitrator by filling execution petition u/order 21 cpc and obtain the order from court for attachment of properties of company and it's director's.