Dishonour of Cheque

Querist : Anonymous (Querist) 28 January 2011 This query is : Resolved
ABC,a Private Limited Company has two Directors namely Ram and Sham and issued a cheque signed by Sham for RS 50 Lac to XYZ a Private Limited Company without the knowledge of Ram . Cheque was Dishonoured.
XYZ Filed Suit on ABC and on Ram and Kishore as directors, whereas Kishore is not director of ABC. Sham who signed the cheque is not made party. XYZ in suit says that the said cheque was received towards repayment of Loan given to ABC. Though XYZ had given a cheque of 50 Lac to ABC BUT XYZ is not able to lead any evidence that the amount was towards Loan despite asked by the Court in the past 5 hearings at the instance of Ram, who says how such a big amount is given as loan when his company ABC had no dealings with XYZ right since incorporation.
ABC is not doing any business for the past over 6 years and its records are destroyed during Labour dispute and strike.
What is the position of ABC,Ram,Sham and Kishore(who is not director)

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Amit Minocha (Expert) 28 January 2011
In the suit ABC vt ltd can also summon records from the IT / ROC dept as well. Further XYZ ltd also needs to show the debt in its books of accounts as well as in its Anuual Return given in the name of ABC Pvt ltd, if it is not there then no case is made out against any one. Ram, Sham and Kishore are not liable for the debtloan of the Co. amitminocha@yahoo.com

Ajay Bansal (Expert) 29 January 2011
It depends upon documents of Income-Tax/ROC department that what is fate of Ram,Sham,Kishore and ABC.

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