Legal Question in Business Law in India

We had entered into an agreement to buy 50% of a limited company in 2005. The Company ran a plant which had become a NPA with a major bank in India. Once new partners were involved ie., us the original defaulted loan account was granted a One Time Settlement (OTS). Half the money agreed to be paid under the OTS was paid by us, but as we were not transferred shares etc., and became aware that the original promoters were fraudsters, we refused to part with further money.

The original promoters and the Company do not acknowledge us and we do not appear in any documentation. Furthermore, the money we have given is not reflected in the audited accounts.

The Bank, although they took substantial funds from us, has now taken the stance that we have no 'locus standi' as the loan account of the Company was granted the OTS and any money we paid would legally be held to have come from the Company as we had paid on behalf of them.

As we have paid the money, but we are not acknowledged by the Company/original promoters OR the Bank, is it legally viable for us to claim the money back from the Bank as we had paid erroneously on being led to believe that we were part of the Company ?

Surely the Bank cannot credit a Company with paying funds that they do not acknowledge was ever paid ?

Thank You

Anindyam Datta


Asked on 10/05/09, 3:29 am

4 Answers from Attorneys
KAMAL GROVER

you have made a big blunder. You dont have proof of amount. you dont have proof of money, what your legal department was doing. They dont know what you r doing or u did it at your own level and did not contact to your legal cell.

Now you dont have any option except to file only a recovery suit by making the company and other persons party or if there is any agreement between you and company then for share of company and after that you can apart you from company by filing partition suit.

Regards

[email protected]

Plz hire any expert legal adviser and take advise on every such matters.

Good luck.

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Answered on 10/05/09, 3:52 am
RAJIV GUPTA (Cell: +91 9811284735) [email protected]

you can file a suit for recovery for the funds already transferred to the bank and you will have to prove in the court that the money was paid by you and not on behalf of the company towards its liability.

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Answered on 10/05/09, 4:01 am
Sudershan Goel India Law Offices of Sudershan Goel - Advocate

You may be file a recovery suit against the company on whose behalf the money was deposited. The repayment of loan may be used as a proof to support your case.

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Answered on 10/05/09, 1:27 pm
Seshadri Srinivasan www.lawconcern.com

Dear Sir,

Any advice can be based only on a full reading of the MOU that was signed. You can send the same by email.

Subject to the above:

1) Your payment to Bank will be by way of cheque/ banker's cheque and that can be proved easily.

2) You can possibly recover the money from the Bank if the full circumstances is made known to me, I can advice you better.

warm regards

Seshadri Srinivasan

Advocate,

website: www.lawconcern.com

emails: [email protected]

[email protected]

India Chennai Office Phones : 98403 20808 /28515229

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Answered on 10/06/09, 1:59 am


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