Ep against a plc with minimal assets
Tom
(Querist) 07 August 2017
This query is : Resolved
Dear Experts, I hold an arbitration award against a Pvt Ltd Co. The MD of the Co has siphoned off the funds because he has total control of the Co through other directors who are his wife & son. Currently the Co has very little assets and so what do I do with the award ? At the same time he has personal immovable assets in his name. Can I list his personal assets too in the Execution Petition ? Thanks
P. Venu
(Expert) 08 August 2017
How he has siphoned off the funds?
Tom
(Querist) 08 August 2017
I cant say,but fact is the company has no assets except some computer s/ware & hard ware and a rented office ! He falsely projected a rosy picture about his company,entered into an agreement with me,took my money and did not perform intentionally. In fact he is a serial fraudster according to me.
Dr J C Vashista
(Expert) 09 August 2017
Provide all information in EP for the assets of the company and its directors (if the limitation is qua its capital), discuss with a local lawyer.
I am not asking/begging/compelling you to press either "like" or "unlike" button for my opinion/advise, it is purely your personal decision. However, you are expected to (rather must) submit your remarks as you have been obliged Free legal advise for your query.
Tom
(Querist) 10 August 2017
@ Expert Shri P Venu: Have you any thing to add Sir !
Ms.Usha Kapoor
(Expert) 16 August 2017
yes, If the MD''s siphoning off the funds of pvt limited company can be proved in court you can list his personal assets in EP as the MD through fraudulent means with the cooperation of his wife ans son , the other directors s took control of the entire company and siphoned off the funds of the company becomes personally liable to reimburse the company's loss leavening only minimal assets for enforcing the arbitration award and hence under the doctrine of lifting the corporate veil if directors uses company's funds for his personal ends he can be personally liable to reimburse the loss caused to the company through his fraudulent means..
Ms.Usha Kapoor
(Expert) 16 August 2017
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Guest
(Expert) 16 August 2017
If you can't say how the MD has siphoned off the funds, on what ground you have stated that he has siphoned off the funds. A company having little assets does not mean that the funds have been siphoned off by the MD. Possibility of funds being used as working capital cannot be overruled.
If yours is not an academic query and you really have any such problem, for the purpose of appropriate response, you should get complete information and provide here for examination of the experts. Otherwise, it would be better for you to take help of some local lawyer to prepare your petition for execution of arbitration award in an effective and practical manner.
krishna mohan
(Expert) 17 August 2017
You can proceed as advised by your counsel for Execution of the award through competent court. They also have right to appeal to challenge the award.
