Bijay Shrestha 10 April 2017

Default of loan repayment by vijay mallya led companies

Dear friends,

As we all know that Liquor Baron Vijay Mallya led Companies defualted in repayment of Rs. 9000 Crore to various banks. Now those banks are trying hard to get him arrested and recover their dues either by selling his properties and others.

Now my doubt is If the Company has defaulted in repayments, then shareholders liability cannot exceed the amount attributable to them from the Company i.e. limited liability. How can the Banks recover from his personal assets ?

Also what is the legal provisions behind this and behind his arrest ?

Please suggest..

P.S. It is only for knowledge purpose.

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G.L.N. Prasad (Retired employee.) 11 April 2017

Banks always obtain personal guarantee of all directors for every rupee advanced to a companyseparately in their personal capacity and can get security by way of mortgages and they have a right for general lien and can attach the properties through process of court.

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