You have to study the current financial status of the company by scrutinising its last balance sheet and P&L account statement and then decide on the company's offer. It is better to accept the settlement as the company has already been under the NCLT proceedings.
Creditor of Company Under Insolvency and Bankruptcy Board of India
Hi, I am creditor of a Company which went under "Insolvency and Bankruptcy board of India" u/s 6 on 03.05.2021. Estimated date of closure of Insolvency resolution process- 30.10.2021. I have dropped all the details of my credit to the NCLT office appointed and he then acknowledge the credit proofs and asked me to talk to the company for the payment now as monotorium is removed from the company now. Concern- Company is now saying to take 30-40% of the amount as settlement. Hence I need to know if I have any legal option to fight for my complete money instead of taking 30-40% of it. Thanks.
Asked 3 years ago in Business Law
13 Answers
What is total debt due and payable by company
check the financial position of company as on date
consult a local layer before you accept company offer of 60 per cent haircut
Company is not sharing any Financial documents, but as per verbal discussion they are saying we have 80cr receivables and 22cr is what we have to pay. And this 22cr we are settling in 10crapprox as the 80cr receivables are pending and awaited, thats the reason they have sold 2 subsidiaries of thier company and went to NCLT.
Asked 3 years ago
Company had to file its audited accounts with registrar of companies
you can take search and obtain details of financial position of company from ROC
amicable settlement is best option
If it is a public limited company, all its financial documents are public records available on the RoC portal. If you know the CIN of the company, you may access these records. As a creditor, you have every right to demand these statements from the NCLT too. Please engage a practising Company Secretary to help you out.
A moratorium is a temporary suspension of an activity or law until future consideration warrants lifting the suspension, such as if and when the issues that led to moratorium have been resolved
It is up to you to accept the moratorium offered by the company or to reject their offer and to proceed legally and to continue with the proceedings that is going on now.
Powers of NCLT during insolvency resolution of Corporate Persons – The National Company Law Tribunal shall have jurisdiction to entertain or dispose of following applications and claims while exercising jurisdiction. These are overriding provision, even if contrary to any other law – section 60(5) of Insolvency Code, 2016.
(a) any application or proceeding by or against the corporate debtor or corporate person;
(b) any claim made by or against the corporate debtor or corporate person, including claims by or against any of its subsidiaries situated in India; and
(c) any question of priorities or any question of law or facts, arising out of or in relation to the insolvency resolution or liquidation proceedings of the corporate debtor or corporate person under this Code.
The interim resolution professional shall make every endeavour to protect and preserve the value of the property of the corporate debtor and manage the operations of the corporate debtor as a going concern [section 20(1) of Insolvency Code, 2016].
The personnel of the corporate debtor, its promoters or any other person associated with the management of the corporate debtor shall extend all assistance and cooperation to the interim resolution professional as may be required by him in managing the affairs of the corporate debtor – section 19(1) of Insolvency Code, 2016.
If they do not cooperate, application can be made by interim resolution professional to the Adjudicating Authority (NCLT) for necessary directions. NCLT will issue suitable orders – section 19(3) of Insolvency Code, 2016.
You can claim full refund of your money
File your independent application before NCLT for resolution of insolvency of debtor company
Hi, As checked, this resolution proceeding is between SBI bank and Company(3rd May-21 - 31/10/2021). So once this resolution process is completed between the parties then the company will be running as per the normal process? and then can I get my full amount of money after certain period of time? Company has enough Networth and not running in losses is what is shown in their 2020-21 annual filling reports as below- Share Capital- 8.5cr Reserve and Surplus- 123.87cr Long term Borrowings- 22.04cr Short Term Borrowings- 133.52cr Total Fixed Assets- 180.46cr Total Current Assets- 185.08cr Thanks,
Asked 3 years ago
You can seek to recover your outstanding dues from company as it has sufficient assets to pay its creditors
It is a call you have to take depending upon your own current financial status. The company may appear to be solvent at present, but does it have a comfortable liquidity position to pay off its creditors? As advised earlier, please consult a reliable chartered accountant / company secretary in such matters for better and wiser professional advice.
Yes you can get it
you have to first give a demand notice to the company
if it does not respond then file your independent NCLT case against this company
So you may take a considered decision on the basis of the information you had received.
If you are confident about it you can go ahead with your decision.
Since the proceedings are between the bank and the company you need not get yourself involved in that.
Dear client,
you should be eligible to get your money after the company resumes as it has enough assets to pay its creditors.
Thank you
