You can seek 3 months time to make payment
2) on account of pandemic prevalent at present court would extend time for making payment
Payment issues
Sir, I have been running a company almost 8 years and there is one vendor which I have some liabilities pending to pay which is almost 11.5L. On November 2019, case went to NCLT Kochi tribunal and we made an out of court settlement at December. As per the settlement, we were suppose to clear the payment as 3 installments (Jan, Feb & March) and the cheque has given as well. But due to different situation, we couldnt process the payment and suddenly on March the covid situation started. Now the vendor as requested to reopen the case on NCLT and the hearing will happen this month. Last month out of 11.5 I paid 3L to the client and requested to discuss this and give us atleast 3 months to settle this fully. But they are not agreeing with my requesting. Now I would like to know the following. 1. When we appear on the NCLT court for hearing, can I ask them atleast 3 months to settle this fully. Because of this covid situation, the business went down drastically. 2. If they wont agree with that, what will be the next possibilities?
Asked 4 years ago in Business Law
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11 Answers
Yes you can ask my them to settle at least on cheque payment and next in 15 days or else pay interest on 11.5 lakhs amount.
You will have to make such a request before the NCLT bench when the matter reopens.
It is for the court to then decide and grant you time accordingly.
1. You can file a petition seeking required time for settlement, your request may be considered.
2. The NCLT will certainly allow you an opportunity to settle the case peacefully, otherwise it may take up the matter for trial and you will be heard before any decision is taken.
1. YES .... you may request NCLT at the hearing to restructure the payment modalities and grant further time for repayment, by taking plea of existing Covid situation and business losses. Note that you will have to comply with the directions, which is usually granted by NCLT, which would be given based on your undertaking.
Keep Smiling .... Hemant Agarwal
VISIT: www.chshelpforum.com
yes you ca seek time from court. you need to repay else the court will proceed
1, Yes, you can plead and should plead for granting the desired time to pay the outstanding dues.
2. Generally, such requests are allowed, may you will get lesser period to fulfil your commitment.
As you failed to fulfil your two earlier commitments of Jan & Feb 2020, which was prior to the COVID-19, so the refusal of your borrower is justified.
- As per Supreme Court , all the cases limitation has been extended for the period of lockdown , and further directed to all courts not to pass adverse order .
1. You can mention before the court that you were ready to comply the settlement , but due to covid -19 , unable to pay the same , and prayed for maximum time
- Further, as you have already paid 3 L , then the said court is bond to give you time for further 3 to 6 months.
2. Move an application/reply before the NCLT court , court cannot refuse to give you time.
1. Yes you can ask for time to clear the dues.
2. You will get a chance to clear the dues as per settlement.
you can go on date, if you will request for further time for payment, NCLT can give you time for the same.
1. Yes.
2. They may agree.
