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JP Thomas   30 July 2026

Jd company with out any assets

Dear Learned Experts,

I filed an EP against a PLC and in the court the Award debtor company submitted that it is left without any Assets and submitted a balance sheet to that effect and I was left with no relief 

But I have gathered sufficient proof that the JD company directors have transferred its Assets to new companies floated by them and earned revenues from it, with the intent to deny me the award dues

What options have I now to proceed against the Directors personally since they committed Fraud in this manner 

Tom



Quick Summary
If a company you've filed an execution petition against claims to have no assets, but you have proof directors transferred them to new companies to avoid payment, there are legal avenues. Indian law allows for civil, criminal, and corporate actions to hold directors personally liable. It's crucial to gather evidence of asset transfers and common directorship, and to seek an urgent injunction to prevent further alienation of assets.

 3 Replies

T. Kalaiselvan, Advocate (Advocate)     01 August 2026

When directors siphon off or transfer assets to new entities to defeat an execution petition (EP) and evade paying an arbitral award or decree, Indian law provides several parallel avenues—civil, criminal, and corporate—to hold the directors personally liable and recover your dues.

Collate bank statements, ROC filings (Form MGT-7, AOC-4, DIR-12) of the old and new companies showing common directorship, asset transfer deeds, and client/revenue migration.

 Immediately seek an urgent injunction in the Execution Court restraining the directors from further alienating their personal properties or transferring money out of the new companies' bank accounts.

 Bring your evidence to an advocate specializing in commercial execution, company law, and criminal fraud to draft an application for lifting the corporate veil in your EP.

1 Like

P. Venu (Advocate)     03 August 2026

Had you not moved the Court for attachment of properties while instituting the Suit?  Anyhow, transfers of properties in order to evade the execution of the decree are voidable.

1 Like

JP Thomas   04 August 2026

Thks for the very learned reply/advise Saar


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