Inter corporate loan recovery

Advocate

You can issue a legal demand notice demanding the repayment of loan amount along with the accrued interest. 

Let them give a reply and if they are not complying with the demand made then you can take legal action for recovery including filing a petition for winding up of the company before NCLT.

The winding up or liquidation of a company is the process by which a company's assets are collected and sold in order to pay its debts. Any monies remaining after all debts, expenses and costs have been paid off are distributed amongst the shareholders of the company.

The winding up 'petition' is the name given to the application sent to court. It is reviewed by the court, and if passed, sent to the insolvent company. It generally takes around 28 days in total for a winding up order to take effect.

Winding Up involves ending all business affairs and includes the closure of the company (including liquidation or dissolution), whilst Liquidation is specifically about selling off company assets in order to pay creditors and then closing the company.

The appointment of a liquidator, which means that the powers of the directors cease, usually takes between one and two weeks. If more than 90% of shareholders agree to short notice, liquidation can happen within seven days.

 

 
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