Inability of cash-credit loan repayment in pvt ltd company
Querist :
Anonymous
(Querist) 07 August 2010
This query is : Resolved
1.My father was running a Pvt Ltd Company in our home premises as a director of this business.
2.Two other directors were my mother and another person.
3.The company had a Cash credit loan(cash-credit loan of 32lakh including interest) with personal gurantee of directors.
4.My father died 2 years back and the business got sick and could not run and shutter closed.Now my mother is bed-ridden with cancer.
5.The account of business has not sufficient fund to pay the loan and my mother(one of the director) is surviving with cancer and the other director didn't show up.
6. I am the only son of my parent(both of them were director as said eralier) and was not involved in this business anyway.
7. Both me and my wife are in different services profession.Under this circumstances, we don't know what to happen in the future...
we just want to get rid of the situation and save our property and we don't have enough fund...please advise.
Further Details:09/08/2010
1. Spares/Tools/machinery has been sold/realized and saved as fixed deposit in company account.
2. Only personal guarantee was there for the directors.
Now my further question is...
3.If the property does not remain in my father's name in future,what will happen.
4. As one of the 3 directors(except my parents) who is an outsider(not stay in our home...i.e the business premises)....how the bank will chase him, as he does not show up after our business operation closed and not ready to take any responsibility.
5. What can happen after my mother's absence as I am not at all involved in this business in black and white.
Please note..I don't understand business whereabouts and I just want to save our property as we stay there and I don't have enough money if it is asked...
Querist :
Anonymous
(Querist) 07 August 2010
Please advice...
A V Vishal
(Expert) 07 August 2010
What are the fixed assets/current assets of the company which can be realized by sale. What is the collateral given for the CC by the company and the directors. Clarify with full details.
s.subramanian
(Expert) 08 August 2010
further details are required
B K Raghavendra Rao
(Expert) 08 August 2010
As the directors are personal guarantors, yourself as legal heir of your father (a director), your mother and another director would jointly and severally become liable to pay the borrowed amount.
Uma parameswaran
(Expert) 08 August 2010
All the directors are personally liable.Your mother is liable to pay her share.If there is any property in your father's name ,then bank can proceeds against it.If the directors could not pay the amount then bank can proceed against their property.
A V Vishal
(Expert) 09 August 2010
1. Spares/Tools/machinery has been sold/realized and saved as fixed deposit in company account.
Ans. This can be utilized towards part payment of the debt.
2. Only personal guarantee was there for the directors. Now my further question is...
3.If the property does not remain in my father's name in future,what will happen.
As of today you cannot sell the property since charge is created and registered by the bank with ROC.
4. As one of the 3 directors(except my parents) who is an outsider(not stay in our home...i.e the business premises)....how the bank will chase him, as he does not show up after our business operation closed and not ready to take any responsibility.
Ans. The bank has right to sue the guarantors jointly or severally, further, they can also proceed against your mother to make good their loss.
5. What can happen after my mother's absence as I am not at all involved in this business in black and white.
Ans. As legal heir you will step into your parents shoe and it will be your responsibility to satisfy the bank claim if you don't want to lose the property.
