City Limouzines bounced cheques
Ann Delorme
(Querist) 12 September 2009
This query is : Resolved
What can an investor do in the case of a bounced company cheque and the company does not declare bankruptcy but is going in for restructuring?
What about breach of trust of a signed agreement between the investor and the company, wherein the company agrees to give a certain amount of interest every month for a certain period but fails to stick to the agreement.In such a case what can the investor do?riven
A V Vishal
(Expert) 13 September 2009
Q1: Why was the cheque issued?
If the reply to the above query is against any liability, then, you can proceed against the company under 138 of NI Act.
Q2: You claim to be an investor?
What do you mean by investor. Do you have any share holdings in the company?
What type of agreement is executed between the company and you?
If there is an agreement between you and the company, you can seek judicial intervention/legal remedy against the company for performance and also claim damages.riven
Adinath@Avinash Patil
(Expert) 13 September 2009
Mr. vishal has resolved query. I m agreed with Vishal.riven
Raj Kumar Makkad
(Expert) 13 September 2009
You can also contact Company Law Board as well as Special cell constituted by RBI to look after companies which accept the money from the investors and then commit any default to re-pay their dues in time.riven
Raj solanki
(Expert) 13 September 2009
you have option ether you file a case for the recovery of the amount in civil court or wait for some.riven
Ann Delorme
(Querist) 13 September 2009
Thank-you Mr A.V Vishal,Mr Adinath Patil and Mr Rajkumar Makkad. I shall consult my lawyer with your opinions being taken into consideration.
City Limouzines has issued Preference Shares to me as an investor, giving a high return of 48 per cent for a period of five years and then after a completion of five years a return of 50 per cent of the principal invested with them.I as an investor of City Realcomm signed an agreement to that effect with the company and as of now since the end of August 2009 the cheques have started bouncing. Ann.riven
Ann Delorme
(Querist) 13 September 2009
How do I contact Special Cell constituted by the RBI to protect the investing public from companies who take deposits from the public?
Can City Limouzines protect itself from investors suing the company for bounced cheques under 138 Negotiable Instruments Act by moving the high court to give it time for restructuring under the Companies Act 1956, Section 391, 392 or 393?riven
Prakash Yedhula
(Expert) 13 September 2009
Reply by Shri.S.A.Rajan sent to lawyersclubindia:
I am sure,when you mean investor,he has deposited money with a company registered under Companies Act 1956. You can serve a notice for winding up under Sc. 433(e) of the act and proceed for winding up. The company may pay the amount or will get wound up and you will get proreta payment.A winding up petition has to be filed in the High Court of the state in which the company has its registered office. S.A.RAJAN
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