I entered into a private loan agreement with a certain individual. That loan agreement was complex. It involved the starting of a venture with me holding 90% of the shares and him holding 10%. For my equity contribution, he would pay me as personal loan, and then I would invest it in the company as my share contribution. He would invest his 10% directly. The company was a private limited company.
The agreement consisted of two sections. One for Rs. 2 Crores loan and another for yet another Rs. 2 Crores loan. The other 2 Crores was to use my 90% shares in the company, as collateral. The loan principal was made in tranches, as required, and not all at one time.
He asked that I provide a certain immoveable asset as collateral. I had another asset which I had asked that it be expressly excluded from the agreement and it was excluded. I was to be the CEO.
He asked me to provide an irrevocable POA to him to sell the collateral in the event of a default.
Just before the 1st Rs. 2 Cr was to end, he asked that I provide as collateral, the immoveable property for the addition Rs. 2 Crore loan, that was expressly excluded. I had no choice because I had payroll commitments to meet at that time so I offered that too as collateral. He continued to hold my share certificates too which were supposed to be the collateral for the next Rs. 2 Cr.
Later, as I trusted him 100%, I would sign any documents pertaining to ROC filings that he asked me as his CS and his accountant handled all the paperwork for the company.
Every year he would ask me to confirm the amount I have borrowed but he would ask me to do this on company letter head with company stamp.
A year back, he again made certain demands on my immoveable property which was expressly excluded from the agreement claiming that he wanted a share in it. In short, it appears that his core interest was not in the company but on my property.
Now that he has called the loan in by sending me a notice through an advocate, I asked him copies of all documents he has relied on, which I purportedly signed.
He refuses to comply.
What are possible remedies that I have against him?
I WOULD LIKE TO GET PAID DETAIL ADVICE IF YOUR INITIAL COMMENTS APPEAR TO IMPRESS ME. THEN I WILL PROVIDE YOU WITH ALL RELEVANT DOCUMENTS TOO.
TIME IS OF THE ESSENCE SO PLEASE HELP!!!
