1. One of the firm in Ahmedabad (Roller Flour mill) took term loan of Rs.2.50 crore from GIIC, Ahmedabad in 1996. During 2006, GIIC has filed a civil suit for recovery of dues to the tune of Rs.11 crore. 2. BIFR has declared the unit as Sick Unit 2. I have given personal guarantee. 3. In the details of property column, the details of property which is given is dubious. Neither I have submitted any papers related to my property. 4. In fact, i was an employee working for the company. But he made me as Director (on papers). 4. As on date, I dont have any property. But I am a Govt. employee.
Please advice regarding the legal implications on me.
case seems to be time barred. Recovery suit is not maintainable as principal amount was only Rs. 2.50 cr.. only. since company has been declared SICK hence depending on facts of the case if the case filed thereafter then such case is not maintainable. If you were director then you cannot escape from your liablity. You must have completed the formalities in this regard.. Consult a lawyer with details.