Recover of amount from debtors
hdshardik
(Querist) 08 June 2014
This query is : Resolved
my brother ' s business has a substantial amt to receive from his debtors from xyz co . This co . is not paying amount since last 5 years . even this co has not paying amt to others parties also . we have tried all the best communication to the higher level of mgt of co . It seems they do willfully . kindly suggest concert solution , to recover the amt of trade receivable ?
They have sold our stock in trade .
pl suggest the way to sort out .
malipeddi jaggarao
(Expert) 08 June 2014
Your brother's business firm must be having credit invoices, delivery acknowledgements, hundies etc., as an evidence of giving credit to the xyz co. Serve a legal notice to pay the amount, otherwise, file a suit for recovery basing on the evidence available.
Rajendra K Goyal
(Expert) 08 June 2014
The credit is 5 years old and in absence of debt acknowledgement it may be time barred.
If it is not time barred, you may start recovery proceedings and also submit winding up petition if it is a company. Consult local lawyer and show him all the documents.
ajay sethi
(Expert) 08 June 2014
claim appears to be barred by limitation
Sankaranarayanan
(Expert) 08 June 2014
i do agree with Mr sethi and MR Bhartesh Goyal
hdshardik
(Querist) 09 June 2014
what is the time barred clause ?
malipeddi jaggarao
(Expert) 09 June 2014
A debt is time barred if not paid/acknowledged within 3 years from the date of debt as per Limitation Act.
hdshardik
(Querist) 09 June 2014
thank u sir a lot .......................
ajay sethi
(Expert) 09 June 2014
thanks for your appreciation
T. Kalaiselvan, Advocate
(Expert) 11 June 2014
I appreciate the valuable opinion rendered by expert Mr. Rajendra K Goyal on the subject issue. Thus if there is an acknowledgement of debt and the gap in the communications in this regard are less than three years, it may not attract limitations clause.
