Gave loan to a pvt ltd company, not able to get it back
akash
(Querist) 26 August 2013
This query is : Resolved
Hello Experts,
I gave an unsecured loan of Rs 8 lakhs to a new private ltd company, which was being run by a friend. The company is now into losses and owes about 25 lakhs to suppliers. Now I want my money back but the co. is saying it does not have the money and keep me waiting. They have assets of Rs 20 lakhs and no other liabilities apart from my loan and the supplier payment, as they claim.
If the company shuts down, would the supplier be paid first or would I be paid first? I'm concerned that if all the assets are used to pay the supplier, I will not get back anything as I did not have any collateral security in the loan agreement.
Thank you
ajay sethi
(Expert) 26 August 2013
was money advanced by cheque ? do you have proper documentation regarding the loan . issue winding up notice against company
both are un secured creditors . supplier wont be paid first . better adopt legal proceedings against company
akash
(Querist) 26 August 2013
Thanks for the reply Mr Sethi.
Yes money was given by cheque and there's a notarized loan agreement in place.
If I issue winding up notice, would the final sum be divided pro-rata, so I get [8/(25+8)] of the liquidation value?
Devajyoti Barman
(Expert) 27 August 2013
You can file
1. Winding up petition against the Company.
2. Suit for recovery of money
3. Case of cheating.
Choice is yours.
Amit Soni
(Expert) 27 August 2013
I am agree with Mr. Devajyoti. And yes you will be paid pro-rata basis.
Further, if possible to convert your loan as secured then Execute an agreement of mortgage of assets of company pay proper stamp duty, register it with Registrar of Companies in Form no. 8. Then you will be paid first.
Amit Soni
(Expert) 27 August 2013
I am agree with Mr. Devajyoti. And yes you will be paid pro-rata basis.
Further, if possible to convert your loan as secured then Execute an agreement of mortgage of assets of company pay proper stamp duty, register it with Registrar of Companies in Form no. 8. Then you will be paid first.
Guest
(Expert) 27 August 2013
Agree with Shri Barman.
Sudhir Kumar, Advocate
(Expert) 27 August 2013
You can follow above advise and hope to recover some part of your charity.
Sudhir Kumar, Advocate
(Expert) 27 August 2013
You have no loan document.
You have no agreement.
You donot know whether this loan was as per MOA of the company.
in return you do not have a share certificate.
You also do not have debenture.
That is the reason that the dealing appears as a charity.
akash
(Querist) 27 August 2013
Thank you experts for all your views. This was very helpful.
@Mr Sudhir Kumar- As I've memtioned in my reply to Mr Sethi, I do have a notarized loan agreement. Also, I have a token 1 share of the company.
