Urgent query- company defaulted on loan and i was the representative
Mayank Arora
(Querist) 20 February 2016
This query is : Resolved
Dear Experts,
An urgent query please, so need some help. I was a Director of a small Pvt Ltd company which I resigned from more than an year back. The company had taken a loan from an investor 3 years back which I had signed as the representative of the company.
The directors who took over from me have defaulted on the payment of this debt (after I had left). Now the investor has filed a case for recovery and has mentioned my name along with the existing Directors and the court has served a summon.
What should I do now? My designation has been mentioned as "Director" in the notice even though I have nothing to do with the company for more than an year. The default also occurred 5 months after I had left. How do I communicate this to the court that there's no reason for me to be put in that list since I'm not an existing Director?
advocatepassy@gmail.com 971794
(Expert) 21 February 2016
You can file your response to the court, through your lawyer, stating the exact position with prayer to remove your name
rajagopal.s
(Expert) 21 February 2016
Hi
You should appear in the court and also state that you have resigned from the company as a director and also the same has been reflected in MCA portal.
Check the MCA portal and search under your company name. if your name is figuring under Director list, take the copy of your resignation letter and also the relieving letter along with you.
If your name is not figuring in the Director's list, you can submit the certified copy obtained from MCA portal and submit the same to the court and ask the court to discharge you from the case.
Hemant Agarwal
(Expert) 21 February 2016
1. A case of recovery would have been filed in the Civil Court.
2. A director is liable (even personally) for the Loan Amount that the Co. had taken under his signature. However these depends on the BOD resolution accepting the Director's resignation, without any further liability of the resigned director.
3. The liability of the director (in a civil matter) would not get absolved, since you were the director (officer in charge) at the time of transaction.
4. However IF the opposite party had filed a "cheque bouncing case", THEN the present director (officer in charge) at the time of "cheque bounce" wold be held liable and not the former director.
Keep Smiling .... Hemant Agarwal
http://www.maharashtra-society-help-forum.com
Rajendra K Goyal
(Expert) 21 February 2016
You should appear in the court and file your response through your lawyer based on the facts.
DEFENSE ADVOCATE.-firmaction@g
(Expert) 21 February 2016
If it is cheque case than you are still liable even now you are no more hold the position.
Attend criminal courts any where in the country and watch cheque cases to understand the problem.
In your case there may be some technical faults either in notice or complaint or even bank documents. Engage and expert in the line to come out of the problem.
Guest
(Expert) 21 February 2016
Mostly depends upon the language of the loan agreement.
However, about your personal involvement that also depends upon the contents of your resignation letter as well the resolution passed to the effect of your resignation from the company? You may like to discuss about that.
Also, please intimate if PDCs were also issued with your signatures along with signatures of other director(s) for payment of the EMIs.
Mayank Arora
(Querist) 21 February 2016
Thank you so much for your responses experts.
No cheque was issued under my name. The interest payments were being done through online transfer till the time I was in charge but the directors who took over from me stopped paying the interest and defaulted on the principal later.
In fact, the agreement clearly had a condition which stated that the loan has been made to the company and the directors do not have any personal liability of payment and that I was in fact signing only as a representative of the company.
Guest
(Expert) 21 February 2016
You can expect relief. But, still terms of agreement are required to be examined carefully by some expert for appropriate advice.
