Npa for loan sanctioned under cgtsme - entrepreneurs angle
sandip
(Querist) 31 March 2018
This query is : Resolved
Ours is a manufacturing unit of hydro electric system. The company was sanctioned 50 lakhs cash credit under CGTSME. It was doing fine till 2014 and was paying bank's dues regularly. But it turned NPA in 2016 due to non-payment of outstanding dues by Government clients. The company management had been continuously following up with the clients for payment, but there has been no response. The bank has been kept informed of the situation on regular basis. Neither the company nor the directors have funds to pay off the loan. The bank has proceeded for recovery. I would like to know what the entrepreneur can do under the circumstances and what proceedings are likely to be taken against the directors?
Thanks.
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Siddharth Jain
(Expert) 31 March 2018
It really depends on as to how they the other side has initiated the recovery, whether, it's criminal or civil, which will decide as to what would happen to the directors of the company. The entrepreneur has lots of ways to overcome such hurdles.
Please contact me at isidjain1@gmail.com for a detailed legal consultation.
Siddharth Jain
(Expert) 31 March 2018
It really depends on as to how they the other side has initiated the recovery, whether, it's criminal or civil, which will decide as to what would happen to the directors of the company. The entrepreneur has lots of ways to overcome such hurdles.
Please contact me at isidjain1@gmail.com for a detailed legal consultation.
Guest
(Expert) 01 April 2018
No alternative except to repay the loan. The Directors have to manage faster recovery of its dues from its clients or park additional funds at their own with the company to meet with the liability towards the bank. Failing which, the individual property of the Directors can be attached for the purpose of recovery of loan. The bank has nothing to do with the pending dues from the Government clients.
Guest
(Expert) 01 April 2018
Seems to be an academic query.
If any truth is there in your query, are your Chartered Accountants/ Finance Officers so inefficient and incapable to suggest the way and means of running the company effectively by meeting with its liabilities?
Dr J C Vashista
(Expert) 01 April 2018
Commercial query, consult /engage a local lawyer, which you can (must) afford, if there is some truth in the story.
