Bank loans are normally guaranteed by personal guarantee of the promoters directors. In such a case, banks would proceed against the guarantors in court of law for recovery of loans, if company fails to pay. However, in such cases where a bank has not taken any personal guarantee of the directors, whether bank can proceed against the directors?
In my opinion, NO. a bank can not recover from promoters if they have not stood guarantors at the first place.
Please guide me in the matter. If there are some court decisions in the matter, I would feel obliged if you would quote for my reference. more
In my opinion, NO. a bank can not recover from promoters if they have not stood guarantors at the first place.
Please guide me in the matter. If there are some court decisions in the matter, I would feel obliged if you would quote for my reference. more
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There is NO POINT is offering any verdict of any of the Court as the facts and Circumstances of each case Or Group of Cases differs with each other - UNLESS - we should know which direction we are heading to. Details of the facts and figures - Solicited. more
Aug 29
Khazanji: If the Director is guilty of fraud or mismanagement then he is personally liable for the loss thereby caused. However, whether there is fraud or not would depend on the facts of each case. otherwise he is not liable. Kindly see the discussion in Ramaiya's book under Section 291 of Companies Act, 1956; where several case laws have been discussed including Kundan Singh case (1987) 62 Com Cases 600 (P&H). more
Aug 20
Thanks Mr. Chandran for your crisp, clear and easy to understand approach to the given details of the case. Could you also please quote any judgement of any court on these lines. more
Aug 19
sir, there is no point in simply writing on this wall and mute Let us join hands and make a big movement. we have an opportunity this social circle can become a thorn in the eye of government babus On Thu, Aug 18, 2016 at 9:18 AM, UDAY GB wrote: > more
Aug 18
Let us frank and free to accept the naked facts that without the involvements and active support of the Banbus of the Bank it never happened. It is imperative to NOTE that total impact of Bad Debts is whooping 3 lacs Crore rupees. For a common-man's home loan Bank seeks 400+% security i.e. Hypothcation of the Home + Two Security OR Surety of equal amount + your own contribution + Insurance + advance cheques etc. While offering loans to the Businessman all these criteria are kept aside for hundred and thousand of crorers of rupees. Well knowing the fact that once loan is approved the Babus are not accountable Nor responsible to recover it but conveniently declared as bad debt after negotiating and sanctioning additional loans in fictitious other establishments of the same group/business. In Mallya's case King fisher as Brand was loaned for Rs. 350+ Cr. rupees. You must have observed that the family members and relatives were enjoying free trips offered by the Air lines in fictitious names, so also the IPL passes. Moreover WHY MALLYA????? when there are farmers in METROS saved officially Rs. 1 + crorers to Rs. 10 crorers of rupees as Income Tax and other Businessman had swiped Rs. 3 Lacs Crorers of rupees. Govt. action is more NOTEWORTHY to infuse Rs. 27000 Crorers to the PSU in additional to other leverages like merging of State Banks. A GOOD EXAMPLE. more
Aug 18
