A shareholder in a company registered under companies act 1956 was acting as a managing director of the company.
The company availed 10 cr working capital loan from Banks after mrtgaging the personal property of the managing director. The person unfortunately died and his family is being harrassed by the company to sign the share transfer only then they will release the properties mortgaged with the bank.
Can somebody enlighten me on the legal status of the mortgage since it was a mortgaged for working capital requirement of the company.
