Usecured loans

Querist : Anonymous (Querist) 07 November 2011 This query is : Resolved
My uncle as director of Pvt Ltd company advanced money as unsecured loan.He died and money was inherited by his wife as per will.The company stopped giving interest and denied the payment saying that the son of my uncle owed the company some money and the money was adjusted in books of accounts also.My question is can the company adjust the unsecured loans of other persons debts without consent.If no what is the law and relevant sections.As this is required by police who is investigating the sase and wants from the legal heir of that director(His wife) law regardind unsecured loan adjustment.please help us and tell us the remedy and provisions of law.

Follow Query

Report Abuse

Devajyoti Barman (Expert) 07 November 2011
The company seems to apply the rule of set off against the son.

Since after the death of the father the son gets the right to recover the arrears the defendant/company can well adjust the same with the amount due from son.

It is strictly a point on law.
So it is better if the widow or the son files a suit for recovery of money from the company and let the company come up with defence on that line.

Advocate. Arunagiri (Expert) 07 November 2011
The son is having a share over the receivables from the company, at the same time the son has to pay some debts. The company can adjust his eligible portion only.

The company ought to return the remaining to the other legal heirs.

Arun Kumar Bhagat (Expert) 07 November 2011
Both of them to sue each other. Your uncle's son should file winding up petition against the company.

Advocate. Arunagiri (Expert) 07 November 2011
Winding up petition can be filed only when the company is not able to settle their loans/liabilities. In this case they are adjusting the loan amount.

Previous

Next

You need to be the querist or approved LAWyersclub expert to take part in this query .

Click here to login now