LIVE Course on Transfer Property Law | Price Hike in 4 days | Grab it now!
LCI Learning

Share on Facebook

Share on Twitter

Share on LinkedIn

Share on Email

Share More

Rohit Mittal (VP)     15 September 2011

Bad debt

 

Dear All

We were supplying our product to a party in Maharastra. The party is now unable to pay anyone and is bankrupt. Is there any legal suit we can file against him to have a claim on the debt.

I have heard if w dont respond in some limit, we will not have any right on it.

Kindly guide us. 



Learning

 4 Replies

vinayak (employed)     16 September 2011

Is that person to whoem you are supplying goods is company or individual?

In case of company you can file your claim before lequidator of company

Rohit Mittal (VP)     16 September 2011

Hello

It is against a company. What is the exact process of filing the claim

vinayak (employed)     16 September 2011

Issue a legal notice to company at its registred address and to its directors also

In case that company is registred with ROC and if your claim is for more than one lac then you can even issue sec. 434 creditor winding up notice too

RK MEHTA (DEPUTY GENERAL MANAGER - LEGAL)     16 September 2011

Dear Rohit,

Before you decide to take legal action for recovery against a company, you should be doubly sure that the company would have sufficient means to pay the debt. In case of winding up proceedings you would have to make expenses and in case winding up is ordered, all the unsecured creditors shall share the assets, if any. As a fundamentla rule, the debt of a company can be claimed only from the company and not from any of its share holders or directors. The idea is that you should not be spending good money for bad debts. Take a considered decision.


Leave a reply

Your are not logged in . Please login to post replies

Click here to Login / Register  


Start a New Discussion Unreplied Threads



Popular Discussion


view more »




Post a Suggestion for LCI Team
Post a Legal Query