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MURUGESH KASIVEL (Corporate Lawyer)     06 November 2014

Injunction not to alienate the property

Dear all,

An investment company granted loan to a company Rs20 lakhs  which was guarantee by the Director of the company on his personal capacity to repay incase of default and submitted the title deeds of his property. This was on 1995. After that the investment company was fined by income tax department for capital gains for paying the fine the income tax department took away the debtors and collected the debts from for the payment of fine. After the payment the remaining debtors were given to the company on 2012. Now the company which borrowed Rs 20 lakhs were in a situation that debt cannot be repaid by them. Now we want to sue the Director for payment of debt. What suit should be initiated against him?? Kindly, brief me the procedures. Thanks in advance.Advice me at the earliest.


 5 Replies

adv.raghavan (Advocate,9444674980)     07 November 2014

Brief about the documents he had submitted and signed, apart from property docs he had given,for standing guarantee for a third party. Based on that we can advice u better.

Praveen (Business)     09 November 2014

Dear Law Experts , 

what are all the Procedure to get injection order / Stay order for unoccupied lands or illegal occupation ?

Please share your valuable legal informative for me

Praveen (Business)     09 November 2014

Dear all ,

   How can i get injection order ? what are all the rule for lands owner ?

MURUGESH KASIVEL (Corporate Lawyer)     27 November 2014

Raghavan Sir, Sorry for the late reply. Let be brief it.

A company is incorporated on 1995 and gave term loans to another company (said debtor) four short term loans amounting to Rs. 54,00,000/- for which one of the director has given his house property title deeds and power of attorney to sell another property belonging to him and all the other directors executed Agreement of Guarantee and Joint and several Demand Promissory Note. In 1997 Income Tax department raid the company and fined Rs. 3,60,00,000/- for notional gains. The Company demanded to write off the debts due from the debtor but the department denied that the debtors are secured debtors and they took all the documents with regard to the debtors and started collecting the debts from them. In 2012 the fine amount was paid by way of amount collected from debtors and remaining debts due were released to the company. The company is under liquidation and the said debtor has paid only Rs 18,00,000/- out of Rs. 54,00,000/- .

Now the company want to collect the debts due from the said debtor. How the Liquidator can proceed further ????

Kindly, clarify me at the earliest.

Thanks in advance.

adv.raghavan (Advocate,9444674980)     28 November 2014

He will go for recovery against the said debtor, making director as party 2 ,to the proceedings as he stood guarantee against the said debtor. 

  Powers of Official Liquidator: - Powers of the official liquidator has been given

under S. 457 of the Companies Act, 1956.
A. Some of the important powers of the Official Liquidator which can be exercised
with the sanction of the Court/Tribunal are as follows: -
 To institute or defend legal proceedings, in the name and on behalf of the
 To carry on business of the company for the beneficial winding up of the
 To sale movable and immovable property and actionable claims of company;
 To raise on the security of assets of the company any money requisite;
 To do all such acts necessary for winding up the affairs of the company
B. Some of the important powers of the Official Liquidator which can be exercised
without the sanction of the Court/Tribunal are as follows: -
 To execute all deeds, receipts and documents in the name and on behalf of
 To inspect the records and returns of company;
 To prove, rank and claim in the insolvency of any company;
 To draw, accept and endorse any negotiable instruments in the name and on
behalf of the company;


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