Maintainability of a money recovery suit.
Rama Devi
(Querist) 23 November 2019
This query is : Resolved
Respected Experts, Plz. suggest your opinion. My question is:
M/S Pratap Sing Traders is owing a due amount to M/S VM Rolls. Both are companies. M/S Pratap Singh is also filed a Petition before NCLT.( National Company Law Tribunal) and in that case M/S V.M.Rolls is one of the Creditor/respondent. . My question is: since the NCLT case is pending, is it necessary for M/S V.M.Rolls to file a recovery suit against M/S Pratap Singh Traders for obtaining a decree, for the due amount by M/S Pratap Singh. So Plz. suggest.
Sb Karma
(Expert) 23 November 2019
If M/S V.M.Rolls going for the procedure of NCLT then they need to go through following process.....please read carefully
Procedure>>>
A plea for insolvency is submitted to the adjudicating authority (NCLT in case of corporate debtors) by financial or operation creditors or the corporate debtor itself. The maximum time allowed to either accept or reject the plea is 14 days. If the plea is accepted, the tribunal has to appoint an Interim Resolution Professional (IRP) to draft a resolution plan within 180 days (extendable by 90 days). following which the Corporate Insolvency Resolution process is initiated by the court. For the said period, the board of directors of the company stands suspended, and the promoters do not have a say in the management of the company. The IRP, if required, can seek the support of the company’s management for day-to-day operations. If the CIRP fails in reviving the company the liquidation process is initiated.
Amendments
The Bill prohibits certain persons from submitting a resolution plan in case of defaults. These include: (i) wilful defaulters, (ii) promoters or management of the company if it has an outstanding non-performing debt for over a year, and (iii) disqualified directors, among others. Further, it bars the sale of property of a defaulter to such persons during liquidation.
If all follow processed then help to recovery will be done by NCLT
Rama Devi
(Querist) 24 November 2019
Thanks Karma Ji for your valuable suggestion. NCLT proceedings is one aspect made by M/S Pratap Singh Traders against its creditors inclusive of M/S V.M. Rolls etc.,
On the other aspect, is it necessary for M/S V.M.Rolls to file a Civil Money Recovery suit against M/S Pratap Singh Traders or not.
Dr J C Vashista
(Expert) 24 November 2019
V/M Rolls has to file their claim before NCLT.
It is advisable to consult a local prudent lawyer for better appreciation of facts/documents, guidance and proceeding.
Guest
(Expert) 24 November 2019
Refer the Judgement Orders pronounced by Honorable Justice V.M.Velumani in Madras High Court on 7-6-2017 in C.R.P (PD) No 670 of 2017 and C.M.P No 3412 of 2017 in the matter of N.Ramji VS Ashwath Narayan Ramji and Sundaram Finance Ltd ( available in google )
Guest
(Expert) 24 November 2019
The Remedy to be sought only in NCLT
Guest
(Expert) 24 November 2019
Very Well Pointed out by Advocate Sb Karma
Sb Karma
(Expert) 25 November 2019
Thank you sir (N.J.S. Rajkumar )
for your appreciation
Guest
(Expert) 25 November 2019
Welcome please .....................................................
