• Defeating provision of any other law

Conversion of paid up Equity duly alloted into a Term Loan. Is it unlawful act?
Asked 10 years ago in Business Law

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4 Answers

what are facts of your case .? generally in term loan agreement there is clause for conversion of loan amount into equity

Ajay Sethi
Advocate, Mumbai
96941 Answers
7822 Consultations

What are the circumstances which preceded the conversion? What are the provisions in agreement?

Ashish Davessar
Advocate, Jaipur
30776 Answers
972 Consultations

What are the provisions in agreement

Rajeev Bari
Advocate, New Delhi
1506 Answers
92 Consultations

once ABC/ LMN ltd has signed agreement with XYZ giving XYZ an option convert paid up equity into term loan at its discretion it would be binding on ABC /LMN .

if subsequently new company has becoming NPA chairman is not personally responsible .

if LMN became NPA in 2009 and no legal proceedings were taken to recover the loan claim would be barred by limitation as on date . suit ought to have been filed within period of 3 years to recover loan

Ajay Sethi
Advocate, Mumbai
96941 Answers
7822 Consultations

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