Advocate Diggaj Pathak

Questions Answered by Advocate Diggaj Pathak

Q: Which director will get property in case of dispute?

There is private limited co. with 2 directors. They have bought property from an auction from a bank. Only one of the direction does all the work. Will that director have right over the property in case of dispute?

Advocate Diggaj Pathak answered
In a private limited company it is the shareholders who are the owners of a company and the properties owned by it. The percentage of shareholding determines the extent of interest in the company. Only being a Director without any shareholding is of no consequence whatever.

Q: how does arbitration help with settling corporate litigation Dispute?

how does arbitration help with settleing a corporate litigation Dispute?

Advocate Diggaj Pathak answered
Arbitration is a process by which parties can agree to have their disputes resolved outside the court. The arbitrator can decide all kinds of disputes but the main crux is that both the parties should be agreeable for arbitration. The proceedings do not strictly follow the code of civil procedure or evidence act and the parties are free to decide upon an agreed procedure for conduct of proceedings. The Arbitrator is usually a retired judge and a lawyer which has to be appointed with mutual consent or depending upon the terms of the arbitration agreement. Arbitration process is faster than normal court procedure so corporates opt for such a procedure to resolve their disputes.

Q: I AM GURANTER IN A PVT LTD CO WHO IS NPA NOW. CAN BANK HARASS ME?

I AM A HOUSE WIFE AND I GAVE GUARANTEE TO MY BROTHER'S COMPANY. I HAVE NOT INVEST ANY MONEY IN THE COMPANY NOR I OR MY FAMILY HAVE ANY SHARE OF THE COMPANY. NOW THE COMPANY DECLARE NPA . CAN BANK HARASS ME OR THEY CAN DECLARE ME WILL FULL DEFAULTER? ANURADHA AGARWAL

Advocate Diggaj Pathak answered
The liability of the guarantor is co-extensive with that of the borrower and the guarantor is equally liable to pay. Rest would also depend on the clauses of the guarantee agreement which you would have executed. In case the borrower does not pay back the loan the bank will come after you.

Q: legal action against director of pvt. ltd. company

Dear sir I am one of the director of pvt. ltd. company.There are 4 directors in company. Managing director has removed funds for personal use from company current account . what legal action can be taken against him? Also, this company was formed in 2003. before that current managing director was having proprietary company in his name. while forming pvt. ltd. company in memorandum of articles it was mentioned that a proprietary company shall dissolve but now managing director has again started that proprietary company without permission of us what action can be taken against him?

Advocate Diggaj Pathak answered
This action of taking out funds of the company amounts to mismanagement and is against the interest of the company. Further if the business of the proprietorship concern is of a similar nature as that of the company then it is a breach of fiduciary duty by the Director. We can approach the company law board under Section 397 & 398 of the companies act.

Q: Is SARFESI act applicable to state level corporations?

SARFESI act. Is it applicable to state level corporations or not?

Advocate Diggaj Pathak answered
Yes it will be if the particular Corporation has been notified by the Central Government in terms of Section 2(C)(V) of the Act. I am assuming here that the State Corporation is the lender as the question is not clear in that context.