Creditor winding up
rds
(Querist) 20 April 2013
This query is : Resolved
Respected Sir,
As a creditor, I want to file a creditor Winding Up Petition against my client who owes me money. Kindly guide me the procedure to file. Also pls guide if there is any other better way .
Thank You
ajay sethi
(Expert) 20 April 2013
has he acknowledged his liability to pay ? issue legal notice to pay outstanding dues wait for his response then decide
rds
(Querist) 20 April 2013
Respected Sir,
Yes he acknowledged his liability to pay.
elgin matt
(Expert) 21 April 2013
Dear Rds,
As you are aware that winding up proceedings as per law are filed when a company is no more a going concern and cannot pay up all its creditors including share holders. It is not meant as a standard mode of recovery of dues, though I must admit it is probably very effect way of recovery. As has been explained above you will have to send a legal notice followed by filing of a winding up petition in high court/company law board to initiate proceeding provided he you have evidence of the acknowledgement of debt.
Apart from this if your debt arises from a written contract and the other party stands in clear breach you could proceed to file a summary suit for recovery simultaneously with winding up. This can act as an effect tool of increasing pressure on the debtor to pay up. Summary suit, if a clear case exist, normally will not take much time and as the name suggests are disposed off summary fashion making the process shaort and effective.
Apart from this you also have regular suit for recovery.
*Adv. Elgin Matt John, elgin@elginmattjohnandassociates.com, www.elginmattjohnandassociates.com, 09818732715
prabhakar singh
(Expert) 21 April 2013
Before jumping for any answer i would like to know about entity of your debtor.
Who it is?
A company? or a partnership? or a proprietorship?
You used word "winding-up" hence advertizer
"*Adv. Elgin Matt John, elgin@elginmattjohnandassociates.com, www.elginmattjohnandassociates.com, 09818732715"
thought you talk of a co.But i am not ready to raise any such presumption.
elgin matt
(Expert) 21 April 2013
Mr prabhakar,
If there is an issue pertianing to the use names and details of lawyers in replies then I can assure the users of this forum that my details will not be appearing henceforth in forum discussions.I am not aware whether this constitutes as advertising but nevertheless as this is causing inconvenience to members details will not be appearing henceforth. I hope this will settle the issue from heron.
prabhakar singh
(Expert) 21 April 2013
Dear Mr. elgin matt!
It is and it has been in past too and it would be even in future.
all that an expert like to speak about him can be detailed by him in his personal profile page.
When you have undertaken to correct it your self,it gets settled at once.
Thank you so much for that.
Arun Kumar Bhagat
(Expert) 21 April 2013
Echoing the voice of Mr. Prabhakar Singh, I would like to add that sec.434 of the Companies Act i.e. winding up is applicable when the debtor is a Company. In the present case the status of the debtor is unknown to us. Amount involved is also prescribed in the Act. Earlier it was Rs.5000/-. Notice period is 21 days grace time.
