kumar t v s (advocate) 24 June 2011

Recovery from a company

I am a decree holder against a manufacturing company for amounts due under a contract. The company is avoiding payments and states that all its assets are mortgaged to Bank. hence am hesitating to file an EP for recovery and attachment. Please suggest a way out.

Kumar TVS

Advocate

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3 Replies

bharat ketireddy (providing legal services) 25 June 2011

No scope for hesitation in litigation.

First ask your advocate to issue a notice to the concerned bank, informing about the decree you have obtained aginst the company.

Second, Make the concerned bank a party and file EP making the MD and other directors parties, seeking necessary relief.

Third, keep a watch on the bank to know if its is going for any auction of the mortgaged properties of the company.

pervez (adviser) 25 June 2011

I agree with the comments of Mr. Bharat... Since the recovery can be effected out of uncharged assets of company and the limitation for execution of a decree is 12 years, you may have to peruse the case/ EP and try to put pressure on bank also so that if anything left out after adjustement of the dues by bank, you can make recovery out of remaining assets....

regards