Shaher yar 22 August 2022
Person A invested Rs 20 lakh in private limited company.
Money was transferred to account of company through bank .
Person A was promised share in profits and his mother was added as Director.
Now person A wants money back
Company says it will share profits and not repay money.
There is no written agreement /Contract regarding this .
What are the remedies available for person A ?
Anusha Sharma 25 August 2022
You can approach the civil court with the limited proof you've and ask for either a settlement or damages
LCI Thought Leader
Adv. Ravish Bhatt, ADIT, CIOT
(Dual Qualified lawyer/ Solicitor International Tax Affiliate CIOT)
29 August 2022
In absence of a Contract, the amount given by person A will prima facia appear to be an advance / loan given by him and a civil suit/ commercial civil suit could be filed to recover the amount. You need to be careful about period of limitation which normally will be three years from the date when money was lent and in certain circumstances, it could be from date of arising of cause of action.
Also, if you can show that it was the intention of the company/ its officers from the beginning to induce you to lend money through false promise, there may be a possibility for criminal complaint/ FIR for cheating.
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